Not all BC estates require a probate Grant. Here's when you qualify for a simplified process and how banks and institutions handle small estates.
Probate — the court-supervised process of confirming a will's validity and authorizing an executor to administer an estate — is often described as slow, expensive, and inevitable. In reality, many BC estates can be administered without a full probate Grant, or qualify for reduced fees and simplified procedures. Understanding when probate is and is not required can save an estate significant time and money.
What Probate Is and Why It Costs Money
When someone dies in BC, the executor named in their will must typically apply to the BC Supreme Court for a "Grant of Probate" (or, if there is no will, a "Grant of Administration"). This grant is the court's confirmation that the will is valid and the executor has authority to deal with the estate's assets.
BC charges probate fees under the Probate Fee Act. The fee structure is:
- No fee on the first $25,000 of estate value
- $6 per
-
On a $500,000 estate, probate fees are approximately $6,450. On a
Assets That Pass Outside the Estate Without Probate
Many assets never enter the probate estate at all because they pass directly to named beneficiaries or by right of survivorship:
- Joint tenancy: Real property held in joint tenancy passes automatically to the surviving joint tenant(s) by right of survivorship — without probate, without being subject to the will. A simple survivorship application at the Land Title Office is all that is required.
- Registered accounts with named beneficiaries: RRSPs, RRIFs, TFSAs, and life insurance policies with a living named beneficiary (not simply "estate") pass directly to that beneficiary. The financial institution releases the funds directly without a probate grant.
- Pension benefits: Group pension plans and CPP death benefits are paid directly to named beneficiaries or the surviving spouse, typically without probate.
Planning with these designations in mind is one of the simplest ways to reduce the size of your probate estate and the associated fees.
The $25,000 Threshold — No Probate Fee
Under BC's Probate Fee Act, estates with a gross value under $25,000 pay no probate fees. However, some institutions will release accounts below a certain threshold without requiring a probate grant at all — using a small estate affidavit or indemnity instead.
Financial Institution Thresholds
Individual banks and credit unions set their own internal policies for releasing assets without a formal probate grant. Typical thresholds range from
Even without a probate grant, institutions typically require:
- A certified copy of the death certificate
- An original or certified copy of the will
- A statutory declaration or indemnity agreement from the executor
- Proof of the executor's identity
Small Estate Affidavit
Some BC financial institutions and other third parties accept a "small estate affidavit" in lieu of a probate grant for lower-value estates. The affidavit is sworn by the executor and attests to the existence of the will, the value of the estate, and the executor's authority to deal with the assets. It provides the institution with some legal protection if they release funds based on it. There is no standard BC government form for this — institutions have their own versions or may accept a lawyer-prepared affidavit.
When a Probate Grant IS Required
Regardless of the estate's size, a formal probate grant will be required in certain situations:
- Land in BC: The Land Title Office requires a probate grant to transfer registered real property from a deceased person's name, unless the property was held in joint tenancy. This applies even to a single low-value rural property.
- Disputed estates: If the validity of the will is contested, or if there is a dispute among beneficiaries, court supervision through probate is typically required.
- Corporate shares: Transferring shares in a private corporation generally requires a probate grant.
- Larger financial accounts: Most institutions require probate for accounts above their internal threshold — typically anything over $25,000.
- Foreign assets: BC probate does not extend to assets in other jurisdictions; a separate process may be required.
Practical Steps for Executors of Small Estates
If you are administering a small estate and think you may not need full probate:
1. Obtain the death certificate as soon as possible
2. Make a list of all assets, their ownership structure, and named beneficiaries
3. Contact each financial institution to ask about their small estate release procedures
4. Determine whether there is any real property — if so, probate will be required regardless of estate size
5. Consult an estate lawyer if there is any uncertainty — the cost of a brief consultation is far less than the cost of an error in administering an estate
At Sea to Sky Law™
Andrew Liggett BA JD CD provides practical guidance to BC executors navigating estate administration — from small estates that may not need probate to complex estates requiring full court involvement. Contact us for a free intake consultation.
*This article is general information about BC estate law. It is not legal advice. Please consult a BC estate lawyer for advice specific to your situation.*
No. Assets held in joint tenancy pass by right of survivorship without probate. Registered accounts and life insurance with living named beneficiaries pass directly to those beneficiaries. Small estates may qualify for simplified release by financial institutions without a formal probate grant.
There is no probate fee on the first $25,000 of estate value. Fees then apply at $6 per
Only if the house was held in joint tenancy. In that case, a survivorship application at the Land Title Office transfers the property to the surviving joint tenant without probate. If the property was owned solely by the deceased or as tenants in common, a probate grant is required regardless of the value.
A statutory declaration sworn by the executor affirming their authority to deal with the estate and the estate's value. Some BC financial institutions accept this in place of a formal probate grant for smaller accounts, though each institution has its own threshold and requirements.
Call the bank's estate services department directly and ask. Bring the death certificate and the will. They will tell you exactly what documentation they need and whether a probate grant is required for the specific accounts held with them.