The Statement of Proposed Distribution is part of the last step in the estate settlement process. After the deceased's debts and the estate's bills have been paid, and the Spousal Partition is completed if applicable, the executor can distribute the Bequests (or Legacies by Particular Title in Quebec), which are legacies explicitly named in the will. For example, an heir is named in the will to receive the deceased's house. In Quebec, an heir can also receive a category of property, such as all of the deceased's real estate, under a Legacy by General Title.
Next, the executor can distribute the Residual Estate Value to the Universal Beneficiaries according to a Proposed Distribution plan. If all the assets have been liquidated, it is a simple question of dividing the cash between the heirs based on the will's specifications.
In practice, however, the heirs may not want to split the ownership of every remaining asset. In this case, the executor may need to suggest a way to divide the remaining assets and cash so that the value that each heir receives matches the will's specifications as closely as possible. One heir may forfeit some cash in order to have sole ownership of a certain asset, for example. Otherwise, all of the remaining assets may need to be liquidated for the cash to be distributed evenly between the universal beneficiaries.
At the end of the process, the executor must submit a final report to the beneficiaries detailing how the estate's assets have been managed throughout the process. The executor can also submit a Proposed Distribution plan to the beneficiaries at this stage.
In Quebec, the heirs can negotiate among themselves and come to an agreement about how the remaining assets and cash should be distributed, but if they cannot come to an agreement, the matter will go to court. The liquidator (executor) is only released from his role when all the assets have been distributed and a notice of closure of the succession has been published to the RDPRM.