When a death occurs, the liquidator of the estate or the family members are required to handle a number of formalities.
Certain unpaid balances (loans, mortgages, service contracts, credit card accounts, etc) must be paid. There will be no problem paying them if the deceased took out term life insurance for this purpose. The companies concerned must be contacted to find out what arrangements were made.
Since other bills must also be paid, the financial institution concerned must be contacted immediately to obtain payment of amounts deposited in joint accounts.
Legislation varies from province to province, but financial institutions and insurance companies are generally allowed to pay certain amounts, even if the will has not yet been probated.
Finally, if there is a transfer of property, in particular a house or car, the deceased's insurance broker must be contacted so that the auto and home insurance policies can be modified.
This information is presented for information purposes only and should not be considered to be legal or financial advice. For further information, contact a legal or financial advisor.