Estate Administration
Probate and Letters of Administration in Coquitlam, Port Moody, and Port Coquitlam (Tri-Cities)
Navigating the legal system is hard. And we know it is harder when you are facing the loss of a loved one. Administering an estate is a lengthy process with many steps. We want to help you.
Applying for Probate or Letters of Administration
When a person passes away, their estate will typically go through a process known as probate. Among other things, the probate process confirms that the person’s will is legally valid and an executor is named to administer the estate. Furthermore, the process confirms that the assets should be included in the deceased’s estate, that the assets don’t actually belong to someone, and don’t already have a predetermined beneficiary. Assets that must be probated typically, include bank accounts and investments, real estate, and vehicles.
Items that likely won’t need to go through probate include assets with joint ownership, such as, a home or a joint bank account shared with a spouse, and assets like insurance policies, TFSAs and RRSPs with a predesignated beneficiary.
Top Ten Steps To Take When Acting as an Executor or an Administrator
- Make funeral arrangement
- Gather information
- Safeguard the deceased’s assets
- Apply for Probate or Letters of Administration
- Receive approval from the Supreme Court of BC
- Record all money you spend or receive as executor or administrator
- Complete and file tax returns
- Obtain a Clearance Certificate
- Pay off the estate debts
- Distribute assets to beneficiaries
Frequently Asked Questions
What is an “Estate”?
A person’s “estate” consists of all the things that they own at death: such as a car, bank accounts, clothes, jewelry, and/or business interest. Joint accounts and beneficiary designation accounts such as RRSPs or life insurance policies are NOT part of a person’s estate for estate administration purposes.
I have a will. How is the Estate transferred after I die?
Your assets that are in your estate will be transferred in accordance with your Will and wishes by your Executor. This is known as Probate.
I do not have a will. How is the Estate transferred after I die?
If you do not have a Will, you die “intestate”. The estate is distributed as per the Wills, Estates and Succession Act. This is known as Letters of Administration. There is no executor. Instead someone has to act as the administrator. Usually it is a family member. But if there is no next next of kin willing to handle this responsibility, then the Public Guardian and Trustee may consider administering the estate. If no one applies to administer the estate, the court may appoint an Official Administrator. This will take more time and cost more, than if there was a Will. The powers and duties of an administrator are roughly equivalent to those of an executor.
Do you have to apply for estate administration?
One of the first things an executor or administrator does is determine how much the deceased’s estate might be worth. The purpose of this step is to determine the need to apply for estate administration. Generally, you do not have to apply for Probate or Letters of Administration if the gross value of the estate is less than $25,000.
How long does the process take?
The application for Probate or Letters of Administration can at times be frustrating, but also interesting and informative. It can take anywhere from 3 to 4 months to over a year.
Once the application materials are submitted to the Supreme Court of British Columbia, a waiting game ensues. The amount of waiting time will depend on many different factors, including the number of applications the courts have received around that time, or whether there are any inaccuracies or other problems on the application.
After waiting weeks, the executor/administrator may receive a rejection notice from the courts due to problems such as incomplete or inaccurate information. It is the executor/administrator’s responsibility to fix the information and re-submit the application. Then, the waiting process starts over. If the application is rejected multiple times, this can easily extend the entire probate process by months.
Do you get paid?
Executors and Administrators are entitled to be paid for their services. The maximum amount is 5% of the aggregate value of the estate, but rarely do they take the maximum. Some choose not to take any fee at all if they are a friend or relative. Whether an executor or administrator takes a fee, or not, they are entitled to be paid their out-of-pocket expenses.
Executors and administrators must understand that the job can be time consuming and sometimes frustrating, but it can also be very rewarding once the task has been completed.
What are the Probate Fees?
Before the Registry will issue either grant, Probate Filing Fees must be paid and they are based on the gross value of the deceased’s assets which pass through the estate. Assets that do not pass through the estate and certain assets situated outside British Columbia are not subject to Probate Filing fees.
If the gross value of the estate is over $25,000 – the fee payable is $200, plus $6 for each $1,000 or part of $1,000 of estate value in excess of $25,000, up to $50,000, plus $14 for each $1,000 or part of $1,000 of estate value in excess of $50,000.
For example, on an estate valued at $500,000, the probate Filing Fees would be $6,650 as follows:
| Basic Fee | $200.00 | |
| Additional Fee(s) | · $25,001 to $50,000 · $50,001 to $500,000 | $150.00 $6,300.00 ————— $6,650.00 |