When Planning Isn’t Enough: How to Avoid Estate Settlement Delays and Problems
Estate settlement delays can happen even when you have a will, powers of attorney, and all the right documents in place. You may feel relieved knowing your affairs are “handled,” but even the most thorough planning can still run into roadblocks. I’ve seen well-organized estates grind to a halt because of missing details, outdated information, or disputes no one expected.
Delays don’t just cost time and money — they add stress and uncertainty for the very people you were trying to protect. The good news? With a little more preparation, you can give your executor the tools they need to wrap up your estate as smoothly as possible.
The Gap Between Planning and Reality
Having a will isn’t a guarantee of a smooth administration. Many people assume that if the documents are in place, the executor simply follows instructions and distributes assets.
In reality, your executor may still face months – sometimes years – of work depending on what is uncovered after death. Missing accounts, disputes, or asset complexities can all slow the process and create estate settlement delays for your beneficiaries.
Common Problems That Cause Estate Settlement Delays
Even well-planned estates can hit unexpected snags. Here are some of the most common issues that create delays and the hidden challenges they bring for executors and families.
1. Outdated Information: Beneficiary designations that don’t match the will, old addresses, or forgotten bank accounts can all create delays. Executors often spend significant time tracking down accounts or clarifying ownership.
2. Missing or Unclear Instructions: Personal property, like jewellery or heirlooms, is often left out of formal documents. Without instructions, disputes can arise — even in otherwise harmonious families.
3. Complex Assets: Multiple properties, business interests, or investments in different provinces or countries can require additional legal steps, more cost and extended timelines.
4. Executor Challenges: Even a willing executor can face difficulties if they live far away, are unfamiliar with the process, or become ill or incapacitated themselves.
5. Disputes and Legal Claims: Family members may contest the will. Dependants or spouses can make legal claims, even if the will appears clear.
6. Tax Filing Delays: Estates often require multiple tax returns, sometimes for both the deceased and the estate itself. If records are missing, this can hold up filing. Incomplete or late returns can lead to penalties and prevent CRA from issuing a clearance certificate, which means the executor can’t close the estate.
7. Amended Returns and Trust Account Setup: If an asset is discovered late or income comes in after an initial return is filed, amended returns may be required. In some cases, the estate may also need to set up a trust account with the CRA for ongoing administration, both of which add time and complexity to the process.
A Costly RRIF Delay
In one estate I worked with, beneficiaries didn’t claim their inheritance from a RRIF in a timely manner. This triggered an amended T4 from the RRIF issuer, which in turn meant the estate’s tax return had to be refiled. That one delay added months to the settlement process.
Why Delays Matter
Probate and estate settlement can’t be completed until every piece is in place. These delays can mean:
- Financial strain on beneficiaries waiting for distributions
- Increased legal fees if disputes or errors occur
- Prolonged emotional stress for your family
- Executor burnout and damaged family relationships
The Missing Bank Account
Sarah’s will listed all her major assets, but one small savings account at a credit union wasn’t documented. Her executor only found out months later, after tax filings revealed the account. The extra paperwork delayed the estate’s closing by almost a year.
Already have your plan in place? Our Annual Estate & Legacy Plan Review ensures your documents and details are current, accurate, and ready to work when needed.
How to Avoid These Pitfalls
The best way to prevent estate settlement delays is to go beyond the documents. That means keeping your plan current, making sure nothing is overlooked, and preparing your executor for the role ahead.
- Review your plan regularly: Update not just your will, but all accounts and beneficiary designations.
- Document everything: Keep a clear record of assets, passwords, contact lists, and instructions.
- Choose the right executor: Select someone capable, available, and informed about your wishes.
- Communicate your plan: Let your executor and key family members know where things are and what to expect.
- Consider professional support: Executor assistance services can prevent missed details and speed up the process.
Prepared and Problem-Free
Elaine had her will, powers of attorney, and beneficiary designations reviewed every two years. She kept a complete inventory of accounts, insurance, passwords, and important contacts in one secure place. When she passed away, her executor was able to close the estate in under nine months — with no surprises, no disputes, and no CRA delays.
Closing the Gap Between Paper and Practice
Estate planning is essential, but it’s not the finish line. Keeping your plan current, ensuring your executor is prepared, and organizing the details behind the documents can make the difference between a smooth process and one that drags on for years. Let’s make sure your plan works in practice, not just on paper. Contact NEXsteps today to review, update, and prepare your estate for a truly smooth handover.
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