It is obvious that an executor must be aware of any creditors of the estate, since the executor will need to pay those creditors or otherwise deal with those claims before giving the beneficiaries their inheritance. However, there are some situations in which the executor may end up with an obligation to the creditors of beneficiaries.

Garnishment is a creditors’ remedy. When the creditor becomes aware that the debtor is about to receive money from someone else, the creditor can file for a garnishing order compelling that third party to pay the money to the creditor instead of the debtor.

This applies to inheritances too. If one of the beneficiaries of the estate has a creditor who is seeking to recover the debt, the creditor may serve a garnishing order on the executor of an estate to have the inheritance or a portion of it paid to the creditor instead of the beneficiary.

The penalties for failing to comply with a garnishing order are severe. In the case of an estate, failing to comply with a garnishing order could mean that the executor is responsible for paying the amount that should have been paid to the creditor instead of the beneficiary.

In the recent case of Dewberry Estate (Re), 2025 BCSC 2608, a creditor went one step further and served a garnishing order in relation to the executor’s share of the estate. In this case, the executor was also a beneficiary of the estate. The executor had previously had a judgment issued against her, and that creditor filed a garnishing order that applied not only to her inheritance but also to the fees she was claiming in her role as executor.

In Dewberry Estate, the garnishing order was served on the law firm that was handling the sale of a house that was part of the estate. However, the same obligation to pay the creditor would have arisen if the garnishing order had been served on the executor herself.

This case highlights the fact that legal issues can arise during the administration of an estate that an executor may not expect and may not have the legal knowledge to deal with, but can result in significant liability for the executor and the estate. This is one of the reasons to hire a lawyer to assist with estate administration. At Lakes, Whyte LLP, our lawyers have broad experience over different areas of law and are able to advise you when unexpected issues arise, to reduce your liability and the liability of the estate.