Debts, credit lines, and what happens if the estate owes more than it owns
Executors pay legitimate estate debts before beneficiaries. If assets cannot cover liabilities, beneficiaries may receive nothing—and certain gifts may abate according to legal priority rules.
Executors should not distribute early “because family needs cash” if CRA or secured creditors remain unpaid.
Co-signed debts may snap back to survivors; that risk belongs in your solvency planning while you are alive.
Related guides
Disclaimer: This page is for general education only and is not legal advice. Rules vary by province and change over time; speak with a qualified lawyer about your own circumstances.
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