Estate Distributions To-Date

This section lists all of the distributions to date, including all asset distributions recorded in the Current Inventory page and cash distributions in the Estate Accounting page. Although similar to the Estate Accounting section, which lists all transactions made by the estate, this section only logs distributions to beneficiaries (i.e. it does not include the payment of the deceased's liabilities or of the fees the estate incurs).

Assets and cash distributions can also be recorded from this section.

Distributing Assets

Follow the steps below to distribute Inventory items to beneficiaries from the Distributions section.

1. Select the Distribute Item button to record in-kind distributions from the estate's Inventory to a Beneficiary/Beneficiaries.
2. Enter the date of the transaction (by default, it will be the day of.)
3. Select the Item Type and Asset using the drop-down lists. 
4. The Current Market Value will pre-fill based on the Current Value of the Inventory item. You can edit this if required.
5. Select an Account Type between capital and revenue. For more information on if a transaction should be logged to the Capital or Income Account, see here.
6. If there is only one Beneficiary for the item, you can skip the Allocation Type field. If there are multiple Beneficiaries, you can use the Allocation Type field to indicate whether their shares are split evenly or by fraction/percentage.
7. Choose the applicable Beneficiary in the drop-down list. If the item has been allocated to multiple people, click "+ Add Beneficiary" to record the others.
   Note that the beneficiary/beneficiaries selected must have been entered previously to the Contacts section.
8. The Transaction Name will pre-fill; you can edit this to your preference.
9. If required, you can check the "Exclude from executor compensation" box.
10. Hit save to record your distribution.

It's also important to note that some wills may dictate that rather than have the estate pay off a certain liability, it should instead be passed on to an heir with the asset that secures it (e.g., a house is passed on to an heir along with the mortgage (hypothec in Quebec) on the house). If the heir accepts the asset and the liability, they can both be distributed in this section. If the heir refuses the condition, the asset and the liability would become part of the estate as a whole, with the debt being assumed by the estate and the remaining value being distributed to the Universal Beneficiaries as part of the estate's residue.

Distributing Cash

Follow the steps below to distribute cash to beneficiaries from the Distributions section.

1. Select the Distribute Cash button to record cash distributions from the Estate Account to a Beneficiary.
2. Enter the date of the transaction (by default, it will be the day of.)
3. Choose which Estate Account the cash will come from.
4. Select the beneficiary that will receive the distribution. Once you do, a Transaction Name will be suggested for you.
5. Enter the cash amount that will be distributed. If it is a legacy gift/bequest, indicate this using the checkbox below.
6. Choose whether the distribution will come from the Capital or Revenue/Income accounts. For more information on if a transaction should be logged to the Capital or Income Account, see here.
7. Hit "Save." Note that once you've added the distribution, the transaction will automatically be logged in the Estate Accounting section.

This transaction is distinct from withdrawing cash from the Estate Account to make a payment towards the deceased's liabilities or the fees the estate incurs as part of the estate settlement process. This transaction will deduct the amount from the Estate Account and the Residual Estate Value and be logged as a Distribution to an heir. If the heir is a Residual Beneficiary, the amount will be taken from their share of the Residual Estate Value.

For more information on if a transaction should be logged to the Capital or Revenue Account, see here.

Important: although the executor can distribute assets prior to receiving the Clearance Certificate from the CRA, they must ensure that if they do, the estate is solvent, i.e. that it has enough funds to cover all liabilities. By distributing assets prior to receiving the Clearance Certificate from the CRA, the executor becomes personally liable for any unpaid amounts up to the value of the assets distributed, plus interest.