This post has been written by Alannah Harricharan, a Law Clerk at Fasken LLP.
“Why haven’t the banks provided the information yet? We already sent them the Will and death certificate.”
This is a question estate trustees often ask during the administration of an estate.
Many estate trustees assume that providing a death certificate and a copy of the deceased’s Will (if one exists) will be enough to obtain account information from a financial institution and that the requested information will follow shortly after. In reality, the process is often much more complicated than many estate trustees expect.
As financial institutions continue to strengthen their privacy, security, and compliance procedures, estate trustees and law firms may encounter additional requirements and longer wait times than in the past when seeking the information required to administer an estate or apply for probate.
This is not intended to criticize financial institutions and their processes. Banks face significant obligations to protect sensitive financial information and guard against fraud and identity theft. They also need to satisfy themselves that they are dealing with someone who has the appropriate authority to receive information about the deceased’s accounts and assets. These obligations do not disappear simply because obtaining the information may be time-sensitive for the estate trustee. Just as law firms continue to enhance their own security measures to protect client information, financial institutions must do the same. These security measures can also result in additional documentation requirements, centralized review processes, and delays in obtaining information that estate trustees require to move an estate administration forward.
My colleague Betty Laidlaw recently wrote about the considerable work that takes place behind the scenes in preparing a probate application in, The Hidden Work Behind a Probate Application. My focus here is on one particular aspect of that process: the challenges that can arise when gathering asset information from banks and other financial institutions.
One significant change I’ve observed in recent years is the increasing centralization of estate-related requests within financial institutions. In the past, information requests could often be handled through a local branch representative or advisor. While advisors continue to play an important role, they may not always be able to bypass a financial institution’s internal procedures. However, they can often assist in identifying assets, directing requests to the appropriate department, and facilitating communication throughout the process. Today, many requests must be submitted to specialized estates departments, which often have their own internal review processes and requirements. There is no universal process across financial institutions, meaning that documentation acceptable to one institution may not satisfy the requirements of another.
Even after receiving the expected documentation, banks may request further information or supporting documentation before releasing information about the deceased’s assets. A trend I have observed is that some financial institutions are now requesting probate before releasing certain information. This can create a practical difficulty, as the purpose of the request is often to obtain the information needed to apply for probate in the first place. As a result, further time may be spent communicating with financial institutions regarding the information required for the probate application and why probate is not yet available. In some cases, it may be necessary to consider whether the probate application can proceed using estimated estate values, subject to addressing any required updates once the financial information has been received and the estate value can be confirmed.
Not surprisingly, these delays can be frustrating for estate trustees. They may think that insufficient follow-up is being done or that the delay rests with their solicitors. However, the reality is that many of the aspects of the information-gathering process are outside the control of law firms and estate trustees and can affect the timing of an estate administration. This may prolong the administration process, increase estate expenses, and lead to frustration among beneficiaries who are eager for updates or distributions.
These evolving requirements and review procedures have become a significant factor in estate administration timelines. While some delays may be unavoidable, advance planning can help make the process more efficient. Maintaining organized financial records, establishing relationships with advisors, and ensuring estate trustees have access to important information may help reduce difficulties during the early stages of an estate administration.
It can also be helpful for estate trustees to approach the process with some patience and an understanding of the financial institution’s responsibilities. While follow-up may sometimes be necessary, the institution has its own obligations to satisfy before information can be released. Working with the appropriate advisor or estates department to understand what is required, and recognizing that the process may take some time, can make it easier to navigate.
