What Happens If an Asset Is Found After Probate in BC?

Many executors and administrators assume the work is finished once the grant of probate or administration issues. Then a forgotten bank account turns up, a refund arrives, or you realize that a value you swore to in the court documents was wrong. It is a common and stressful moment, but the process for dealing with it is set out in the rules.

This guide explains what British Columbia law asks of you, how to tell whether the new asset affects the probate fee, and how the extra fee is worked out. It is general information, not advice on your particular estate.

This article covers the law of British Columbia.

Your two duties when you learn something new

If, after filing, you find assets or liabilities that were not referred to in the affidavit, or you find that information in it is incorrect or incomplete, you must promptly file a supplemental affidavit. That is Form P14, or Form P15 if the grant was a non-domiciled grant. You must also pay all related fees, including any applicable probate fees.

There is a second, separate duty under the Probate Fee Act. If, after the grant, you learn of an undisclosed asset or that a value in the statement must be revised, you must disclose it to the court and pay the government the difference between the fee paid and any greater fee that would have been payable.

The rules say the filing must be done promptly. They do not give a fixed number of days in the material we rely on here, so do not wait. If you are unsure about timing or about any consequence of delay, ask a lawyer.

Does the new asset count toward the fee?

Not every late discovery increases the fee. The fee is based on the gross value of the estate, as sworn in the Statement of Assets, Liabilities and Distribution. The Act's definition contains no deduction for debts or mortgages. The fee base is limited to certain property that passes to the personal representative at the date of death.

Joint property needs care. Land with a right of survivorship passes to the survivor, not the personal representative. But if joint owners cannot be shown to have survived each other, or die simultaneously, each is deemed to have held the property or account as tenants in common, so a share can pass through the estate.

Worked example: an estate revised upward

Suppose an estate was first declared at $500,000. The fee was $150 on the $25,000 to $50,000 band plus $14 x 450 = $6,300, for a probate fee of $6,450.

Later, suppose an additional asset is found that counts toward the fee base. The revised value of the estate is run through the same bands, and the new fee is worked out the same way as the first one. The amount you pay the government is the difference between that new fee and the fee already paid.

Remember that any part of $1,000 is charged as a full $1,000. For example, $1,000,500 is charged as $1,001,000. So an added amount that is not a round thousand can raise the fee slightly more than you might expect. The figures in this example are arithmetic from the fee formula; confirm current amounts with the court registry before you pay.

Other points that come up

• You pay the probate fee on behalf of the estate, but only in your representative capacity as personal representative, not personally.
• No probate fee is payable on a grant de bonis non, a cessate grant or a double probate.
• No probate fee is payable if the value of the estate does not exceed $25 000. A late discovery may change that, so check the revised total against the bands.
• If the original grant was non-domiciled, the supplemental affidavit is Form P15 rather than P14.
• A late-found asset still has to be dealt with for tax. Property is generally treated as disposed of just before death at fair market value, and the legal representative files the final T1 return, with a T3 return possibly needed for the estate.

If you are worried about how a mistake affects you, a court application for advice or direction may be possible. An executor or administrator may petition the court for advice on administration questions, and costs of that application are in the court's discretion.

What to do next

• Write down exactly what was found, its date-of-death value and where it was held.
• Check whether it passes to you as personal representative or went directly to someone else by survivorship or a valid designation.
• Check where it is located and whether the deceased was ordinarily resident in BC at death.
• Prepare the supplemental affidavit in the correct form, P14 or P15.
• Work out the revised gross value and the fee difference using the fee bands.
• Confirm current amounts and how to pay with the court registry before you file.
• Keep records of every step, and speak with a lawyer if the value, ownership or tax treatment is unclear.

Frequently asked questions