Home  ›  Ilm Hub  ›  Answers  ›  Can an estate borrow money?
Ilm Hub

Can an estate borrow money?

Sometimes, to pay tax or preserve an asset, if the will grants the power. It is unusual and needs advice.

This is legal information only. For advice on your own circumstances, speak to a lawyer.

Sometimes, to pay tax or preserve an asset, if the will grants the power. It is unusual and needs advice.

The Canadian position

Sometimes, to pay tax or preserve an asset, if the will grants the power. It is unusual and needs advice.

Provincial law governs the detail, so confirm the position where the estate will be administered.

The Islamic position

The fixed shares apply to the net estate after funeral expenses, debts and any bequest capped at one third.

Where a Canadian instrument has no classical counterpart, treat it as a contemporary question for a qualified scholar.

Researched — the four schools agree

All four schools work through the estate in the same order: the cost of preparing and burying the body, then debts, then bequests up to one third, and only what is left is divided by the fixed shares. The disputes are not about the sequence but about two rankings inside it.

All four Sunni schools researched and sourced. Reviewed 2026-08-19. Full positions, evidence and sources — The order of payment out of an estate.

Related madhhab issue: Interest money in the estate — what must the heirs do?.

Note

This is legal information only. For advice on your own circumstances, speak to a lawyer.

Citations & sources

Every factual claim on this page traces to a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.

Canadian legislation & government
  1. Apply for probate of an estate — Government of Ontario
  2. Estate Administration Tax — Government of Ontario
  3. Estates Act, RSO 1990, c E.21 — Government of Ontario
  4. What to do when someone has died — Canada Revenue Agency
  5. Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
Further reading — Treadstone Law
  1. Executor power to borrow on behalf of estate ontario — Treadstone Law
  2. Do beneficiaries pay tax on inheritance canada — Treadstone Law
  3. Why similar estates pay different estate administration tax ontario — Treadstone Law
  4. Wills & estates practice — Treadstone Law