Can a Creditor Stop Me From Getting a Grant of Probate in British Columbia?
This answer covers the law of British Columbia.
Usually, no. A creditor generally cannot stop a grant by filing a notice of dispute, because only a person who is entitled to notice under Rule 25-2(2) may file one. Where there is a will, a creditor is generally not entitled to that notice.
With no will, notice goes to intestate successors, creditors owed over $10,000 and anyone who served a citation. A notice of dispute (Form P29) must be filed before the grant issues, and only one may be filed per estate. While it is in effect, the registrar must not issue the grant, and it generally ends after one year unless renewed, withdrawn or removed by the court.
A creditor still has rights. You must settle the estate's debts, including taxes owed to the CRA, before distributing to beneficiaries. You generally must not distribute the estate within 210 days after the grant, except by court order, or with the consent of all beneficiaries and all persons who may bring a wills variation claim. You may publish a notice to creditors in the Gazette that allows at least 30 days for claims. That protects you from liability for claims not presented in time. A creditor can still pursue those who received assets.
Key takeaways
- Only a person who is, or is to be, entitled to notice under Rule 25-2(2) may file a notice of dispute (Form P29).
- Where there is a will, a creditor is generally not entitled to that notice, so a creditor generally cannot file one.
- With no will, notice goes to intestate successors, creditors whose claims exceed $10,000, and anyone who has served a citation on the applicant.
- A valid claim still has to be dealt with, because debts must be settled before the remaining assets go to beneficiaries.