Can a Beneficiary Get an Advance on Their Inheritance Before the Estate Is Settled in BC?
This answer covers the law of British Columbia.
Usually not without conditions. A personal representative must not distribute the estate within the 210 days after the representation grant is issued, unless the court orders otherwise. That period runs from the date the grant is issued, not from the date of death.
There are exceptions. If there is a will, the estate may be distributed early when all beneficiaries with an interest and all persons who could bring a wills variation claim consent. With no will, all intestate successors entitled to a share must consent. If some people cannot be found, the personal representative can set aside their shares, plus enough to satisfy any wills variation claim, and if they do not they are personally liable for resulting loss.
Even after 210 days, court consent is needed if a proceeding is underway about who is a beneficiary, if wills variation relief is being sought, or if other proceedings may affect distribution. Taxes matter too: a legal representative who distributes without a CRA clearance certificate is personally liable for unpaid amounts, up to the value of the assets distributed. A lawyer can help you weigh the risks before any early payment.
Key takeaways
- Except by court order, a personal representative must not distribute the estate within the 210 days after the grant is issued.
- With a will, early distribution is allowed if all beneficiaries with an interest and all persons who could bring a wills variation claim consent.
- A representative who distributes early without setting aside shares for people who cannot be found is personally liable for resulting loss.
- Distributing before getting a CRA clearance certificate can make the legal representative personally liable for unpaid amounts, up to the value of the assets distributed.