One of the joys of estate planning in Canada is that the law varies from province to province. Most of the country follows common law and we in Quebec follow the civil code. For those of you working outside of Quebec, you may encounter clients with assets in Quebec. With that in mind, here are some comments on the impact of Quebec-situated assets for clients living throughout the common law provinces and territories of Canada.

The jargon is different

Under Quebec law, a person’s estate is called ‘succession’. Estate settlement is called ‘liquidation’, and the person responsible for settling the estate a ‘liquidator’.

As a rule in a common law provinces, most wills require probate, or the formal acceptance of a will by the courts.. In Quebec probate is not required if there is a notarial will. This means that if the will has been granted before a notary in Quebec, it is not necessary to have it approved by the court, simplifying the process of settling an estate.

Things becomes more complicated when a client has property in Quebec but a will prepared elsewhere. One of the main reasons for this is that the legal validity of wills is assessed differently under the civil code:  outside of Quebec, wills are generally valid if they are signed before two witnesses. Quebec law recognize notaries’ status as public officers, allowing them to confirm the validity of wills in lieu of the post-death probate process. If a will is not notarized, it must be probated under Section 772 of the Civil Code of Quebec. Like court proceedings anywhere, this adds time and expense to the process of estate liquidation.

However, the probate process can be bypassed by having clients prepare a notarial will drafted in Quebec that deals with the assets within the province. This could save time, money, and the emotional impact of going to court after a beloved one has passed away.

The liquidators job is complex and different

Liquidating an estate in Quebec (or in any Province, for that matter) can involve multiple steps and countless actions – closing bank accounts at multiple financial institutions, filing taxes, winding up businesses, cancelling identification disposing of personal effects and on an on. Clients often reveal that their planned liquidator or executor is a friend, a neighbor, their favourite nephew and so forth. Estate administration can be a big ask for such individuals. For clients with assets outside of their ‘home’ province, it is especially important to discuss with them whether their friend, neighbour or nephew will be able to – both in terms of physical location and Quebec-specific expertise.

There are some aspects of estate liquidation that differ from general rules in common law provinces: for example, if a liquidator does not prepare an adequate inventory of an estate, this can cause the heirs of the estate to become responsible for the deceased’s debts. The significance of this is that a friend/neighbour/relative who does not live in Quebec may not appreciate the unique rules of estate liquidation in Quebec and create significant difficulties for themselves or for the heirs.

Before choosing as an executor for multiprovince estates, or even before a named executor accepts that appointment, these are complexities to keep in mind. For those who find themselves midway through the liquidation of an estate and overwhelmed, resources can be located. That can take the shape of local expertise, professional assistance, and considering having a skilled individual or company be involved in estate liquidation – local expertise is as important in the planning process as it is in the liquidation or administration process. This is one of the most important decisions anyone can make during their lifetime, because depending on their decision, they will leave their loved ones in a very complicated scenario or leave them with absolute peace of mind.

Gustavo Trujillo Paez, Scotiatrust Estate and Trust Consultant