Published
Sundeep S. Grewal is a lawyer at Lawgical Law Corporation, called to the BC bar in 2018, and a member of the Law Society of British Columbia.
Updated November 11, 2026: the Wills, Estates and Succession Act (ss. 59, 143, 154, 155), the Trustee Act (s. 96), the CRA clearance certificate page (January 20, 2026) and the court decisions cited below checked that day.
Yes, in some situations: paying out before debts and taxes are dealt with, mismanaging assets, or making payments the will doesn’t allow.
Protections: a notice to creditors in the BC Gazette (WESA s. 154), the 210-day wait (s. 155), a CRA clearance certificate, and court relief for honest and reasonable executors (Trustee Act s. 96).
The lawyers who handle these estate files
About our lawyers
Sundeep S. Grewal founded Lawgical Law Corporation and practises probate, estate litigation and immigration. He has represented clients in the Provincial and Supreme Courts of British Columbia, from chambers applications to contested trials.
Pardeep S. Grewal is a probate, estates and immigration lawyer known for clear communication and practical strategy.
An executor in BC isn’t personally responsible for the deceased’s debts just because they are the executor. But an executor can become personally liable for their own conduct: paying beneficiaries before the debts and taxes are paid, letting estate assets lose value through carelessness, or making payments the will doesn’t authorize. The good news is that the law gives careful executors strong protections. Advertising for creditors in the BC Gazette, waiting out the 210 days after the grant, getting a clearance certificate from the CRA before the final distribution, and keeping beneficiaries informed all reduce the risk. And where an executor acted honestly and reasonably, the court can relieve them of liability for a breach of trust.
Lawgical Law Corporation, a probate and estate litigation law firm with offices in Surrey, Abbotsford and Vancouver, BC, advises executors on avoiding liability and defends them when claims arise; this guide is by Sundeep S. Grewal.
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The main risks
| Risk | Protection |
|---|---|
| Distributing before tax is cleared | CRA clearance certificate: without one, the executor is “personally liable for unpaid amounts, up to the value of the amount of assets distributed” |
| Distributing before creditors are paid | Notice to creditors in the Gazette, at least 30 days for claims; the executor isn’t liable for claims not presented in time (WESA s. 154) |
| Distributing before the wills variation window closes | Wait 210 days after the grant unless everyone required consents (s. 155) |
| Not paying a debt the will directs to be paid | Pay in the proper order; breach of trust is personal |
| Mismanagement (letting assets lose value) | Insure, secure and deal with assets promptly |
| Payments not authorized by the will | Follow the will; get consent or court directions |
Mismanagement and breach of trust
An executor who fails to administer the estate with due diligence can be personally liable to creditors or beneficiaries who suffer a loss. Mismanagement can be actionable whether deliberate or not. Examples discussed in the CLE manual include letting mineral leases lapse (Laird v. Lyne Estate, 2005 BCCA 437) and failing to preserve the value of a motorhome (Wade Estate v. Duck, 2018 BCCA 176). If the will directs the executor to pay a debt and they don’t, the creditor may be able to claim against the executor personally.
Defences and relief
- Insufficient assets: an executor can plead that the estate has no, or not enough, assets. Without that plea, if a creditor’s claim succeeds, the executor may be taken to admit there were enough assets and be personally liable (Commander Leasing Corp. v. Aiyede, 1983 CanLII 1649 (ON CA)).
- Court relief: the court can relieve a trustee who “acted honestly and reasonably” and ought fairly to be excused (Trustee Act s. 96, which applies to personal representatives under WESA s. 143).
- Rectification: an executor who distributed in reasonable reliance on the will after 180 days, before notice of a late rectification application, isn’t liable (WESA s. 59(4)).
If the estate can’t pay its debts
Insolvent estates follow a strict order of payment, and an executor who pays the wrong creditors first can be exposed. See debts after death and insolvent estates.
Mistakes I have seen
- Paying out the whole estate within weeks, then getting a tax reassessment.
- Leaving the house vacant and uninsured during probate.
- Paying a beneficiary’s debts, or making “advances”, without the will’s authority or everyone’s consent.
Frequently asked questions
Do I have to pay the deceased’s debts myself?
No. Debts are paid from the estate. The risk is paying out the estate before the debts are dealt with.
Should I advertise for creditors?
It is a common protection. Publishing a notice in the BC Gazette under WESA s. 154 sets a deadline of at least 30 days for claims.
Can I be sued by a beneficiary?
Yes, for losses caused by a breach of your duties. Keeping accounts and beneficiaries informed is the best defence: see executor accounts.
What should I do right now?
Before paying anyone out, list the debts and taxes, consider a creditors’ notice, diarize the 210-day date and plan for the clearance certificate.
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Related guides: notice to creditors
Sources
- Wills, Estates and Succession Act (ss. 59, 143, 154, 155), BC Laws
- Trustee Act, R.S.B.C. 1996, c. 464, s. 96, BC Laws
- Apply for a clearance certificate, Canada Revenue Agency (modified January 20, 2026)
- Laird v. Lyne Estate, 2005 BCCA 437; Wade Estate v. Duck, 2018 BCCA 176; Commander Leasing Corp. v. Aiyede, 1983 CanLII 1649 (ON CA), as discussed in CLE BC, Probate and Estate Administration Practice Manual, §§11.11–11.16
This article is general information about BC law, not legal advice for your situation.