Do Assets Held in a Trust Avoid Probate in British Columbia?

This answer covers the law of British Columbia.

Whether an asset held in a trust avoids probate depends on the details of the trust and your situation, so it is worth confirming with a lawyer. The deceased's estate vests in the personal representative, and the probate fee is based on the gross value of BC property in the Statement of Assets, Liabilities and Distribution. Land held by right of survivorship is dealt with separately from land that passes through the estate.

Pitfalls are common. A gratuitous transfer to an adult child, including adding them to a joint account, is presumed to be held on resulting trust for the parent, and the survivor must prove the parent intended a right of survivorship. A judge weighs all the evidence of the parent's actual intention, and use and control of the account is not determinative alone.

Some living trusts carry tax consequences. An alter ego trust must be created by a settlor aged 65 or older who receives all trust income during their lifetime, and its deemed disposition day is the settlor's death, so tax on accrued gains is deferred to that death. A lawyer or accountant can confirm how a particular trust would be treated.