Losing someone close to you can be a difficult to deal with. When grieving, the focus is on emotions and the administrative aspects are often avoided. Even if it may seem secondary, however, it must be taken care of. But sometimes you don't have the knowledge you need to make the right decisions. At Bernier & Associates, we advise and support you in your efforts. Our professionals are there to help you in the event of an insolvent estate in Ottawa, Gatineau, Abitibi, Montreal, East Ontario or in any of our 15 offices. Do not hesitate to contact us for all your questions or to entrust us with your case.
An insolvent estate is one where the liabilities (debts) are greater than the assets (property). In other words, the liquidation of all the assets does not pay off all the debts.
It is essential not to rush but to consider all possible options first: if you accept the estate, you also inherit all the debts and become liable for them.
All debts related to the deceased are included in the liabilities of an estate:
If you inherit an insolvent estate, there are several options available to you. You can accept the estate: in this case, you will inherit not only the assets but also the debts. It's best to be familiar with the deceased person's financial situation before making this decision. Moreover, this can put a strain on your own finances. Don't hesitate to consult our blog to see for yourself if you are heading towards bankruptcy.
You can also refuse the estate: if you choose to do so, you will have to register your renunciation by notarial act. You have 6 months to accept or refuse an estate. If there is no notarized document stating that you refuse the estate, you will be deemed to have accepted it.
In the meantime, do not use the deceased's property as if it were one of your personal assets since you will then be guilty of tacit acceptance of the succession.
A third option is also possible: put the estate into bankruptcy. The services of a licensed insolvency trustee will then be required.
Whatever your choice, never forget that you should not accept an estate without thinking about it beforehand and receiving sound advice.
By entrusting the bankruptcy of the estate of a deceased person to a licensed insolvency trustee such as Bernier & Associates, you are relieved of an important administrative burden and certain obligations: