How to distribute cash
Follow the steps below to distribute cash to beneficiaries from the Distributions section.
- Select the Distribute Cash button to record cash distributions from the Estate or Trust Account to a Beneficiary.
- Enter the date of the transaction (by default, it will be the day of.)
- Choose which Account the cash will come from.
- Select the beneficiary that will receive the distribution. Once you do, a Transaction Name will be suggested for you.
- Enter the cash amount that will be distributed. If you are working on an estate, you can check the box to indicate whether the distribution is a legacy gift/bequest.
- Choose whether the distribution will come from the Capital or Revenue/Income accounts.
- Hit "Save." Note that once you've added the distribution, the transaction will automatically be logged in the Accounting section.
Further information for estates
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 a beneficiary. If the beneficiary is entitled to a universal/residual share of the estate, the amount will be taken from their share of the residue.
Important: Although the executor can distribute assets prior to receiving the Clearance Certificate from the CRA, they must ensure that 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.