Special Considerations for Complex Estates

Not all estates are straightforward. While many involve routine tasks - such as applying for probate, settling debts, and dividing liquid assets - others contain layers of complexity that demand additional care, planning, and expertise.

In this section, we explore several advanced estate scenarios that commonly arise and offer guidance on how to navigate them. These cases often require specialized advice and a higher level of coordination.

1. Business Interests

When the deceased owned a business - whether as a sole proprietor, corporate shareholder, or business partner - the executor may face challenges around:

• Maintaining business continuity during administration
• Determining fair market value
• Handling buy-sell agreements or shareholder disputes
• Assuming temporary directorship responsibilities (and related liability)

We’ll examine what’s required to wind up, transfer, or preserve business operations, and when to bring in legal and valuation professionals.

2. Foreign Property and Cross-Border Issues

If the estate includes foreign real estate, financial accounts, or investments (e.g., a vacation home in Arizona or bank accounts in Europe), the executor must often comply with:

• Ancillary probate or legal recognition in the foreign jurisdiction
• Foreign tax reporting requirements
• Possible estate tax exposure (e.g., U.S. estate tax on U.S.-situs assets)

We’ll outline practical steps to manage these cross-border obligations and minimize risk.

3. Family Disputes and Blended Families

Estates involving second marriages, stepchildren, or estranged relatives can lead to emotional tensions or legal challenges. Executors must be aware of:

• Spousal or dependent support claims under provincial law
• The potential for wills variation actions (especially in provinces like B.C.)
• The need for neutrality and clear communication when relatives are in conflict

This section will provide insight on how to balance legal obligations with family sensitivities.

4. Unique or Hard-to-Value Assets

Some estates contain non-traditional assets that require specialized handling, such as:

• Intellectual property (e.g., book royalties or patents)
• Digital assets (e.g., cryptocurrency, NFTs, monetized YouTube channels)
• Collectibles or high-value personal items (e.g., rare art, sports memorabilia)
• Loyalty programs or reward points

We’ll cover valuation, transfer, and liquidation strategies for these non-standard holdings.

5. Trusts and Ongoing Management

If the will creates ongoing trusts - such as for a minor child, spouse, or disabled beneficiary - the executor may be responsible for:

• Establishing the trust
• Funding and registering it properly
• Possibly serving as trustee for the long term

This section introduces what’s involved in trust setup and administration, and when to consider appointing a corporate trustee.

6. Insolvent or Illiquid Estates

Some estates are asset-rich but cash-poor, or have more liabilities than assets. These situations create challenges around:

• Paying immediate expenses or taxes
• Avoiding premature distributions
• Deciding which assets to sell (and in what order)

We’ll build on earlier sections to address strategies for managing liquidity risk, creditor claims, and preserving estate value under pressure.

By exploring these complex situations, you’ll gain tools to anticipate and manage estates that go beyond the basic model. These cases often demand:

• Tailored strategies
• Skilled professional support
• And clear, consistent communication with beneficiaries who may not fully understand the challenges you’re managing on their behalf.

By approaching these special situations with informed, case-specific strategies, you - as executor - can effectively navigate challenges that might otherwise delay or derail the estate administration. With these complexities addressed, the focus can shift to the final phase: ensuring all obligations have been met and preparing to formally close the estate.

Before we move on, it’s helpful to review some of the most common mistakes and pitfalls executors face - many of which arise from the scenarios we've just covered. That’s the focus of the next section.