Today’s blog is the first in a three-part series that explores estate accounts from the perspective of a beneficiary, and more specifically a beneficiary of an estate in the Province of British Columbia. These blogs were written by Caroline Caron, a paralegal in the Vancouver office of Fasken LLP, to provide practical and helpful tips for beneficiaries who are navigating estate accounts. In this first part, Caroline provides a general introduction and then focuses on specific assets that may appear in estate accounts. It is important to remember that estate accounting, including the form of accounts, is a matter of Provincial law in Canada, so it is always important for beneficiaries to obtain professional advice in their local jurisdiction.

Introduction: Understanding What You’re Looking At

So, you’re a beneficiary of an estate in British Columbia. Over the last months or years, the Executor has been gathering in the estate’s assets and paying off the liabilities,  creating a set of Estate Accounts as they go. Now they’re ready to share these accounts with you—whether for an interim distribution or a final one—so that you can understand the current state of affairs and provide your consent. These accounts are essentially a snapshot of what’s been happening with the estate’s assets and liabilities and tell the financial story of the estate so far.

In this series, we’ll guide you through what to look for in estate accounts—whether you’re reviewing a partial distribution or the final wrap-up. By the end of the series, we hope you’ll feel confident about what to look for, what questions to ask, and how to provide informed input on the estate’s progress.

What to Look for in the Estate Accounts

Now that you’ve got the estate accounts in hand, you might be wondering what exactly you’re supposed to be looking for. Estate accounts generally include several key sections, including: a statement of assets and liabilities at the date of death (listing property, bank accounts, investments, and debts); a record of receipts and disbursements (showing what’s been paid out, such as taxes and expenses, and any income earned since death); and a proposed distribution to beneficiaries. The accounts should be structured so that it is simple to follow along from the starting point to the date of the accounts with logical and clear itemized expenses.

One really important piece to look for is the ending summary. Just like there’s a starting point showing what the estate had at the beginning, there should be a clear snapshot at the end of the accounting period. This final summary tells you what the estate has on hand right now—basically the pot of assets that’s available for the distribution, whether it’s an interim or a final one.

This ending summary is super helpful because it gives you a concrete sense of where things stand. It’s also a reference point for any future accountings. If there’s another interim distribution down the line, you’ll be able to compare that next set of accounts to this one and see what’s changed.

Specific Things to Look For Depending on Estate Assets

The types of assets in the estate will shape what you should focus on when reviewing the accounting. Here’s a breakdown of key considerations based on common asset categories:

Real Estate

If the estate includes real property, look for entries related to appraisals, property taxes, or maintenance costs. Ensure the property was valued reasonably (this may simply be the BC Assessment value, or for more complicated or high-value properties, there should be a formal date-of-death appraisal), and confirm any expenses (e.g., repairs or upkeep) are appropriate. If the property is a rental, check for rental income. If the property was sold, check that the sale price roughly aligns with market conditions and the appraised value.

Investment Accounts

Investment accounts should reflect income earned since death, such as interest and dividends. Review whether sales or redemptions of investments are documented clearly and confirm that proceeds from these transactions are accurately recorded. If the executor is managing complex investments, ask how decisions were made and whether professional advice was sought.

Private Company Shares

For private company shares or other business interests, ensure valuations are supported by appraisals or financial statements. You may also want to ask how the executor arrived at the valuation and whether they have any personal interest in the business. Finally, you should confirm with the executor that they obtained the advice of a qualified tax professional to determine whether any reorganization of the shareholdings was recommended to minimize the estate and corporate tax burden.

Bank Accounts

For general bank accounts, you should see both recurring payments (e.g., utilities, insurance premiums) and extraordinary payments (e.g., legal fees, funeral expenses). Pay special attention to withdrawals, ensuring they are properly itemized with payees clearly identified—particularly for cash withdrawals or cleared cheques, which should have the payee noted.

Personal Belongings or Unique Assets

If the estate includes personal belongings, art, jewellery, or other unique items, check that these are itemized and reasonably valued in a way that makes sense to you. If specific assets are being distributed to beneficiaries, ensure that the values are fair and align with the terms of the will or intestacy rules.

Overall, the key is to make sure that the ending balance—the snapshot we discussed earlier—is accurate and that you feel comfortable with the numbers you’re seeing. If the numbers don’t add up or seem unclear, it is perfectly acceptable to ask the executor for clarification or supporting documentation.

Stay tuned for Part Two!