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Estate Litigation Lawyer

Stopping payments after a loved one’s passing

On Behalf of | Dec 2, 2021 | Estate Administration

There are so many things an executor of an estate needs to do after a testator dies. Estate administration in Ontario isn’t always an easy job, and it is almost always a multi-faceted one. For example, what does an executor do when the testator has outstanding loans? Who should an executor call after the testator dies?

Loans

Loans are usually taken care of by the testator’s estate, but some may be forgivable. One such example is a federal student loan, in which case the executor would call the National Student Loans Service Centre (NSLSC). In Ontario, the Master Student Financial Assistance Agreement (MSFAA) indicates, too, that any outstanding loan balance will terminate upon the death of the bearer of the loan. Any loans issued by a bank are paid from cash, investments, real estate, personal effects or insurance of the decedent.

Insolvency

If a person dies without any assets at all, in other words insolvent, provincial legislation dictates the order of debt repayment. It is important to note that family members are usually not responsible for any debts incurred by the deceased person unless the debt was joint or someone was a co-signor. In the event of death, an estate administrator should call the following entities if applicable:

  • Insurance companies
  • Utility companies
  • The Ministry of Transportation
  • Provincial health insurance (OHIP in Ontario)
  • Financial institutions
  • Canada Revenue Agency
  • Service Canada
  • Citizenship Canada (passports)

Losing a loved one is one of the greatest griefs a person can experience. Having some idea of what estate administration duties entail beforehand may make going through the process much easier. A lawyer experienced in such matters can carefully guide someone through these challenging times, minimizing the chances of any mistakes being made or important matters not being attended to.

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