Can estate legal fees be paid out of the estate in British Columbia?
This answer covers the law of British Columbia.
Yes, in general legal fees can be paid from the estate in BC, but those payments must be approved by the court or by the heirs. You do not need a lawyer to apply for a grant of probate or administration, and an application can be made at any BC Supreme Court registry.
Reasonable legal expenses incurred in administering the estate are listed in the priority order for an insolvent estate. Separate from lawyer costs, an executor or administrator is entitled to a fair and reasonable allowance for care, pains and trouble and time spent, not exceeding 5% of the gross aggregate value of the estate's assets, which the Supreme Court allows (or a registrar does if the court directs), unless the instrument creating the trust, such as a will, sets the allowance itself under section 90 of the Trustee Act.
If a beneficiary or other interested person disagrees, a personal representative or a person interested in the estate may apply to the court to pass accounts or fix remuneration, and the court may decide any matter relating to the accounts or remuneration. Costs on those applications are assessed as special costs unless the court orders otherwise. If you are unsure, a lawyer can confirm how this applies to your estate.
Key takeaways
- Legal fees may be paid from the estate, but the payments must be approved by the court or by the heirs.
- You do not need a lawyer to apply for a grant of probate or administration, and you can apply at any BC Supreme Court registry.
- An executor's own allowance for care, pains, trouble and time is capped at 5% of the gross aggregate value of the estate's assets, and a will that sets the compensation changes that.
- A personal representative or a person interested in the estate can apply to the court to pass accounts or fix remuneration.