An estate executor in British Columbia must list the value of certain assets and submit them to the probate court. The probate process is required to validate the will and grant the executor the legal authority to manage and distribute the estate. Understanding which assets are subject to probate is essential for proper estate planning and administration.
Understanding Probate in British Columbia
Probate is a legal process managed by the Supreme Court of British Columbia, ensuring that the executor has the authority to distribute estate assets. In British Columbia, probate fees are based on the estate's total value, making it important to differentiate between probate and non-probate assets.
For more details, visit the Government of British Columbia's probate guide.
Assets That Are Subject to Probate
The following assets are typically subject to probate in British Columbia:
1. Solely Owned Real Estate
If the deceased owned real estate in their name alone, probate is usually required to transfer ownership. Executors must obtain approval from the Land Title and Survey Authority of British Columbia (LTSA) to facilitate the transfer.
2. Bank Accounts Without Named Beneficiaries
Bank accounts that do not have a designated payable-on-death (POD) beneficiary or joint account holder must go through probate before the executor can access and distribute the funds. Financial institutions may require a Grant of Probate before releasing funds to the estate.
3. Investment Accounts Without Named Beneficiaries
Non-registered investments, such as stocks, bonds, and mutual funds held solely in the deceased’s name, generally require probate unless they have a named beneficiary.
4. Business Interests and Private Company Shares
If the deceased owned a sole proprietorship or had shares in a private company, probate may be required to transfer ownership or liquidate the business assets.
5. Personal Property of Significant Value
Items such as artwork, jewelry, vehicles, and collectibles that are solely owned by the deceased and have significant financial value may be subject to probate.
6. Life Insurance Policies Payable to the Estate
If a life insurance policy names the estate as the beneficiary rather than an individual, the proceeds will be subject to probate.
7. Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) Without a Named Beneficiary
RRSPs and TFSAs that do not have a designated beneficiary or successor holder will be included in the estate and subject to probate.
For more details on registered plans, visit the Canada Revenue Agency (CRA) guide.
Assets That Are NOT Subject to Probate
Some assets can bypass the probate process and go directly to beneficiaries. These include:
- Jointly owned property with a right of survivorship.
- Bank accounts and investments with named beneficiaries.
- Life insurance policies with a named beneficiary.
- RRSPs and TFSAs with a successor holder.
- Assets held in a trust.
For information on avoiding probate, refer to the British Columbia Law Institute’s estate planning resources.
Minimizing Probate Costs and Delays
Executors can take steps to minimize probate costs and streamline estate administration:
- Confirm beneficiary designations on financial accounts.
- Consider joint ownership of real estate and bank accounts.
- Establish a trust to hold assets outside the estate.
- Work with an estate lawyer to ensure compliance with legal requirements.
By understanding which assets are subject to probate and planning accordingly, executors and estate planners can help reduce probate fees and expedite estate distribution. For further legal assistance, consult the Legal Services Society of British Columbia.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified professional for guidance on estate planning and probate matters in British Columbia.
