The Canadian Executor's Guide

Identifying and Protecting Estate Assets

One of the executor’s major responsibilities is to identify, locate, and secure all assets of the estate. This process is often compared to detective work, and for good reason. The deceased may have held assets in multiple locations, across different financial institutions, and in a variety of forms: real estate and bank accounts, vehicles and personal property, investments and pensions, digital subscriptions and cryptocurrency. Some assets will be immediately obvious; others will require careful searching through files, mail, tax returns, and digital records. Until you know what the estate contains, you cannot properly value it, manage it, or distribute it to the beneficiaries. This chapter walks you through that process step by step, and provides practical strategies for safeguarding estate property throughout the administration period.

Inventorying the Assets

One of your key early duties as executor is to identify and secure everything the deceased owned or had an interest in at the time of death. Think of it as assembling the pieces of a puzzle. You must have a complete picture before you can administer the estate properly.

Some assets will be part of the estate and under your control. Others, such as jointly held property or accounts with named beneficiaries, will pass outside the estate, but you will still need to identify them to understand the full financial picture, even if they are not included in probate.

Below is a category-by-category guide to help you locate and assess assets and ensure that nothing is missed.

Tax Returns: A Hidden Map of Assets

Start with the deceased’s recent tax returns. While they do not list asset values directly, they provide clues about asset types and income sources:

These forms help you identify not only what exists, but where to look next, and roughly what the value might be.

Bank and Investment Accounts

Review paper and electronic records for:

Note institution names, account numbers, and balances at date of death. E-statements and email records can help locate overlooked accounts.

Real Estate

Identify all real property:

For each property, determine:

Life Estates and Life Interests

A life estate grants a person (the "life tenant") the right to use and occupy real property for their lifetime, after which the property passes to a designated "remainderman." Life estates are commonly used in estate planning to allow a surviving spouse to remain in the family home while ensuring the property ultimately passes to children from a prior relationship.

Executor Considerations:

Life Insurance and Annuities

Identify:

Check:

Pensions and Registered Plans

Determine if the deceased had:

Check for named beneficiaries on:

Vehicles

List all vehicles:

Check ownership:

You will need:

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“Death Cleaning”

“Let me help make your loved ones’ memories of you nice, instead of awful,” writes Margareta Magnusson, author of The Gentle Art of Swedish Death Cleaning (New York: Scribner, 2018). The Swedes have a word for making “your home nice and orderly when you think the time is coming closer for you to leave the planet”: döstädning: dö = death; städning = cleaning. Decluttering makes life easier for both the executor and those mentioned in your will. That said, you don’t have to wait to declutter until you believe that you are at death’s door. Let the spirit of döstädning motivate you to go through your stuff. Maybe you’ll find things you love but have forgotten, things you want special people to have. Doubtless, you will also find things neither you nor anyone else will want. It feels good to get clean.

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Personal Property

Includes:

You do not need to inventory every item, but:

Business Interests

If the deceased owned or co-owned a business:

These assets may trigger:

Debts Owed to the Deceased

Unpaid loans (with or without formal documentation) are estate assets. Look for:

Unless the will directs otherwise, you may need to pursue repayment or offset a beneficiary’s inheritance by the amount owed.

Digital Assets and Online Accounts

In today’s world, much of our lives is stored online. Digital assets may have significant financial value or deep sentimental importance. Common examples include:

Action Steps for Executors: If you are handling an estate, finding these assets can be a detective game.

Vital Warning: Without passwords or private keys (especially for Bitcoin and other cryptocurrencies) access may be permanently lost. Unlike a bank account, there is often no "customer service" to reset a crypto password. Prioritize these recovery efforts immediately.

Can an Executor Legally Access These Accounts?

You might assume that because you are the executor, you automatically have the right to log into the deceased’s email or Facebook. Unfortunately, it is rarely that simple. The rules depend heavily on where the deceased lived and which company holds the data.

1. The "Uniform" Provinces (Easier Access) If the deceased lived in Saskatchewan, Prince Edward Island, New Brunswick, or Yukon, provincial laws have been updated to help you. In these regions, executors generally have a legal right to access digital assets (like computer files) unless the Will says otherwise.

2. British Columbia and Other Provinces (Harder Access) In British Columbia, Ontario, and most other provinces, there is currently no specific law that forces companies to give executors access to digital accounts.

3. The "U.S. Law" Problem Even if you have a Will and a court order, you may still hit a wall. Major tech giants like Google, Meta (Facebook/Instagram), and Apple are based in the United States. They are governed by strict U.S. privacy laws (like the Stored Communications Act) which often forbid them from showing private messages or emails to anyone, even a Canadian executor with a court order.

The Bottom Line: Do not rely on the law to solve this for you. The most reliable way to ensure your family can access your photos and funds is to use the "Legacy Contact" tools built into accounts today, while you are still able to do so.

Other Assets

These vary widely and might include:

Use insurance records, tax returns, and family knowledge to uncover lesser-known assets.

Unclaimed Property and Dormant Accounts

Search for:

Creating the Master Inventory

For each asset, record:

This inventory will be used for:

You don’t need immediate appraisals for everything, but values must be reasonable and defensible. Probate courts accept executor estimates for many items; CRA may require more precise valuations for tax-reporting purposes (e.g., real estate, business shares).

Assets that Bypass the Estate

As executor, one of your first analytical tasks is to distinguish estate assets from non-estate assets. Not everything the deceased owned is subject to your control. Some assets transfer automatically to others outside of the estate and thus fall outside of your authority, probate, and the will. This section walks you through the key distinctions and legal considerations.

Jointly Held Assets (Joint Tenancy)

Joint tenancy is a common estate planning mechanism intended to avoid probate and allow assets to pass directly to the surviving joint owner. But not all joint ownership is legally straightforward. There are potentially multiple interpretations, and the actual intent of the original owner is critical.

Four Legal Interpretations of Joint Ownership:

  1. True Joint Tenancy

    • Both owners have equal legal and beneficial ownership.

    • On death, the entire interest passes to the survivor.

    • Most common between spouses.

  2. Resulting Trust

    • The asset is held in name only by the surviving joint owner.

    • The beneficial interest remains with the estate, and the survivor holds the asset in trust for the estate.

  3. Pecore Arrangement

    • The original owner retains full control and benefit during life but gifts the right of survivorship.

    • On death, the asset becomes the survivor’s.

  4. Sawdon Arrangement

    • The asset passes to the surviving joint owner but is held in trust for other beneficiaries, often named in a separate declaration.

Determining Intent Matters Most

The law requires a fact-specific inquiry into the intent of the transferor at the time of creating the joint tenancy. Courts may consider:

Red flag: If joint ownership exists with someone other than the deceased’s spouse, consult legal counsel. Disputes are common and can create liability for the estate.

Designated Beneficiary Assets

Assets such as life insurance, RRSPs, RRIFs, TFSAs, and employer pensions often have named beneficiaries. When valid designations are in place:

Tax Caveat:

While these assets bypass probate, the income tax on RRSPs/RRIFs at death is still payable by the estate unless:

If the beneficiary is anyone else, the estate is taxed but the beneficiary keeps the full value. There is no automatic legal obligation for the beneficiary to reimburse the estate for the tax unless a prior agreement or court order requires it.

Tip: List designated beneficiary assets in the inventory as “non-estate assets payable to [Name].” This promotes transparency and helps track any tax liabilities that may fall to the estate.

Registered Plans with No Beneficiary

If an RRSP, RRIF, or TFSA has:

Then the full account value:

Canada Pension Plan (CPP) Death Benefit

A one-time benefit (up to $2,500) is payable by Service Canada to:

As executor, you should apply for this benefit, which becomes an estate asset.

Survivor Pensions

CPP and many employer pensions provide survivor benefits to a:

These benefits do not form part of the estate. Your role is generally administrative, ensuring the proper parties are notified and helping them apply if needed.

Refunds and Reimbursements

These small but valid estate assets may include:

Track and include them when received.

Case Illustration

Jane Doe dies owning:

The estate assets:

The non-estate assets:

As executor, you do not control or distribute the non-estate assets, though you may assist with paperwork. Your duties apply only to the estate assets, which you must value, manage, and distribute per the will.

Securing and Maintaining Estate Assets

Once you’ve identified an asset, your next obligation is to secure and maintain it during the estate administration process. This ensures the value of the estate is preserved for the beneficiaries and minimizes the risk of loss, damage, or liability. Below is a practical, asset-by-asset guide.

Real Estate

Bank Accounts and Safety Deposit Boxes

Investments

Vehicles

Valuables: Jewelry, Collectibles, Antiques

Digital Assets and Devices

Mail and Deliveries

Important Documents

Executor’s Liability: Asset Protection Duty

You are legally obligated to act as a prudent fiduciary. This includes:

Negligence, such as failing to secure a vacant home or allowing unauthorized use of a vehicle, can result in personal liability to the estate. Losses due to market fluctuations or external events, by contrast, typically do not trigger liability if you acted reasonably and prudently.

Lock it Up, Lock it Down

In our digital age, we often think of protecting assets as keeping a close eye on accounts, making sure passwords are secure, and carefully controlling access to accounts. But there is also an old-school analog dimension to asset protection. The executor is responsible for ensuring that the physical personal and real property of the estate is secured. The most basic steps include changing the locks on the house or houses of the deceased. Taking a thorough inventory of items and valuables in the home(s) and elsewhere, and ensuring that they are secure wherever they may be. This requires that the executor control access to the house and other places (including storage lockers and the like) where physical property is located. It may be necessary to restrict access to the house, even from those designated to inherit it. The executor must ensure that homeowners’ insurance and other insurance policies are in force and adequate to cover the period of probate. The executor is on the hook for uninsured losses.

Practical Tip: Interim Handling of Funds

Until the estate account is open:

Once the estate account is open, deposit all estate funds into it, including rent, dividends, salary, refunds, or sale proceeds.

Valuing Estate Assets: Why It Matters and How to Do It Properly

Executors are responsible for obtaining accurate date-of-death valuations for all estate assets. These valuations serve several critical purposes:

What Needs to Be Valued, and How

Some assets are relatively simple to value:

Other assets require professional judgment or appraisal:

Valuation Date: Always Use the Date of Death

The default valuation date for both probate and tax purposes is the date of death. This is the reference point used for:

If the probate application is significantly delayed, some courts may request updated valuations to reflect current market values, particularly for volatile assets like market securities.

Foreign Assets: Currency Conversion

For any assets held outside Canada, executors must:

Documentation and Best Practices

Always record how each valuation was determined. Examples:

Store and retain:

Executor Tip: When an asset’s value is uncertain or ranges widely, document the reasoning for your selected estimate. If appropriate, consult or inform beneficiaries to avoid misunderstandings or later disputes.

Valuations for Tax vs. Probate

Executors should assume that CRA scrutiny is more likely for estates with complex, high-value, or unusual assets. When in doubt, err on the side of defensible documentation.

Managing Investments During Estate Administration

Between the date of death and the final distribution of the estate, assets may continue to generate income (such as interest, dividends, or rental payments) or fluctuate in value. During this period, the executor serves as a fiduciary steward, legally obligated to manage estate assets with care, diligence, and neutrality.

The Governing Principle: Prudent Investor Rule

A common question arises: Should investments be liquidated into cash early, or maintained in their existing form?

Most Canadian jurisdictions now apply the Prudent Investor Rule to executors. This standard requires the executor to manage estate investments as a reasonably prudent person would, prioritizing capital preservation over speculation.

The older guiding maxim still holds true, however: “When in doubt, convert to cash.”

Executors must avoid undue risk. Retaining a diversified portfolio may be appropriate during a longer administration but reinvesting in speculative or high-volatility securities, such as cryptocurrencies or aggressive growth stocks, would likely breach fiduciary duties unless explicitly authorized by the will.

If the will contains specific investment instructions, for example, to retain certain securities or transfer them in-kind, those directions must be followed.

How to Approach Common Asset Classes

Cash and Demand Accounts

Fixed Income (GICs, Bonds)

Stocks and Mutual Funds

If the will instructs that specific securities be transferred in-kind to beneficiaries, arrange this through a brokerage Letter of Direction, not by selling and distributing cash.

Registered Plans (RRSPs, RRIFs)

Executor Tip: Engage Professional Help

If the estate contains substantial investments and the executor lacks expertise, it is prudent to engage a licensed financial advisor. Investment management fees are a legitimate estate expense.

In short-term administrations (e.g., under 12 to 18 months), a conservative approach focused on liquidity and preservation is typically sufficient.

For longer or more complex administrations, a balanced and diversified portfolio may be justified, provided decisions are well-reasoned and documented.

Documenting Decisions: Protecting Yourself

Executors should maintain a clear record of all investment decisions, including:

Beneficiaries may question your choices with the benefit of hindsight. Courts generally do not expect perfect results, only that the executor has acted prudently, transparently, and in good faith.

Special Asset Considerations

In addition to standard estate assets, executors must be aware of specific issues that arise with certain types of property. The following sections highlight key areas that require special attention.

Matrimonial Home (Surviving Spouse Rights)

If the deceased was survived by a spouse and the couple lived in a matrimonial home, there may be statutory rights that affect how the property is treated. This is especially relevant in provinces like Ontario and British Columbia, where:

Executor Reminder: Do not list, transfer, or sell the matrimonial home without first confirming the spouse’s legal rights and obtaining consent or court direction where required.

Estates Under the Indian Act

Canada’s federal Indian Act (R.S.C. 1985, c. I-5) governs “testamentary matters” (all legal issues related to a will, including the creation of testamentary trusts, the probate process, and the official authorization for an executor to act) for First Nations people registered (or entitled to be registered) as Indians under the act and who ordinarily live on reserve lands. Executors administering estates subject to the Indian Act need to familiarize themselves with requirements concerning wills, intestacy (an estate without a will), and the disposition of matrimonial real property on reserves.

Role of Indigenous Services Canada (ISC)

Executors should contact the ISC regional office serving the reserve where the deceased ordinarily resided to obtain guidance on required procedures and forms. Processing times may be longer than provincial probate, so early engagement is advisable.

Note: The interaction between federal (Indian Act) and provincial estate law can be complex. Legal advice from counsel experienced in Indigenous estate matters is strongly recommended.

Out-of-Province Real Estate

Real estate is governed by the law of the jurisdiction in which it is located, not the law of the province where the deceased lived. For example:

If the deceased owned foreign real estate (e.g., a condo in Florida or a villa in Mexico), be prepared to:

Always engage local legal counsel when dealing with foreign or out-of-province real estate.

Safety Deposit Boxes

Safety deposit boxes must be formally inventoried, often in the presence of a bank representative and, in some provinces, a public official. Contents may include:

Include all items in the estate inventory and retain photos or written records for estate records.

Unclaimed Assets

Dormant or forgotten financial assets may be recoverable from:

Search for the deceased’s name in these databases. You may uncover Canada Savings Bonds, old bank accounts, or other unclaimed balances.

Recovered assets form part of the estate and should be included in the master inventory.

Personal Digital Content

While not financial in nature, personal digital content, such as family photos, videos, creative work, and important documents, may have significant sentimental value.

Back up and preserve digital content located on:

After preservation, you may choose to distribute digital copies to family members.

Cancel any ongoing subscriptions (e.g., cloud storage or paid software) only after backing up relevant files!

Passwords and Encrypted Devices

Many critical files and accounts may be protected by passwords or encryption. To access this data, take steps to obtain the deceased person’s passwords. If some or all passwords cannot be located:

Document all access attempts and methods used. This protects you from claims that you failed to retrieve or secure valuable data.

Wrapping Up the Asset Review Phase

By the end of this phase, you should have assembled a comprehensive inventory of the estate’s assets, including what they are, their approximate value, where they are located, and how they are owned (solely, jointly, or with designated beneficiaries). You should also have taken reasonable and documented steps to secure and maintain those assets during the administration period.

With the estate’s asset base now established and protected, you are ready to move to the next critical stage: addressing the estate’s liabilities and debts. Before any distributions can be made to beneficiaries, all legitimate debts, including taxes, must be identified and paid. The next section covers how to handle claims and obligations properly, and how to protect yourself from personal liability by following the correct procedures.