British Columbia Law

When You Don't Need Probate in BC — Small Estate Procedures

By Andrew Liggett, Sea to Sky Law, New Westminster, BC

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 $1,000 on the next $25,000 (estate value from $25,001 to $50,000)
• $14 per $1,000 on everything above $50,000

On a $500,000 estate, probate fees are approximately $6,450. On a $1,000,000 estate, approximately $13,450. These fees are paid from the estate before distribution to beneficiaries.

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 $15,000 to $25,000 per institution, though some institutions have higher thresholds for long-standing clients with specific account types.

The executor should contact each institution directly to ask about their small estate procedures — institutions will often tell you exactly what documentation they require.

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.*

This article is general information, not legal or tax advice. Meetings are by appointment only, by phone or secure video.