How Do I Calculate the Estate Value for BC Probate Tax?

Before an executor can get a grant in British Columbia, someone has to work out what the estate is worth. That figure drives the probate fee, so it is worth getting right the first time.

Many people call this a probate tax, but the law calls it a probate fee. This article explains which assets are counted, how debts appear in the calculation, and what happens with jointly held property.

This article covers the law of British Columbia.

What counts as the value of the estate

The probate fee is calculated on the value of the estate under the Probate Fee Act. That means the gross value, stated in the Statement of Assets, Liabilities and Distribution, of the property that passes to the personal representative at the date of death.

The definition covers real property and tangible personal property in British Columbia. It also covers intangible property, such as bank accounts and investments, if the deceased was ordinarily resident in British Columbia.

Assets that are counted and how they are valued

• Real property in British Columbia, valued at market value at the date of death.
• Tangible personal property in British Columbia, such as vehicles and household goods.
• Intangible personal property, if the deceased was ordinarily resident in British Columbia.
• Property outside British Columbia is disclosed separately in Exhibit B to Form P10, the Statement of Real and Tangible Property Outside of British Columbia.

In the Statement of Assets, Liabilities and Distribution, assets are valued at the date of death, in the column called Value at Death. Form P10 itself asks for intangible personal property anywhere in the world, so the disclosure form and the fee definition are not identical. A lawyer or accountant can confirm how this applies to your estate.

How debts are treated

The fee is based on gross value. Secured debts, meaning debts that charge or encumber a particular asset, are listed under the asset they charge. The form also asks for the liabilities that charge the property.

Debts that are not tied to a particular asset are a separate question. Because the fee rests on gross value, do not assume that every debt reduces the figure. Ask a lawyer or accountant how the form treats each kind of debt in your estate.

Jointly held property and assets outside the estate

Property that does not pass to the personal representative is outside the estate. A benefit paid to a designated beneficiary under a pension, RRSP or life insurance designation is an example. It does not form part of the participant's estate and is not caught by the probate fee definition.

Land held in joint tenancy goes to the surviving joint tenants by a transmission application to the Land Title and Survey Authority. The fee is based on property that passes to the personal representative. If the deceased owned only part of a property, the statement lists the names of all registered owners.

If the title does not say joint tenants, the owners are tenants in common, and the survivorship transmission does not apply. Check the title carefully, because the label on the title decides which path the property follows.

The fee rates and what to do next

If the estate is worth more than $25 000, the fee is $6 for every $1 000 or part of $1 000 between $25 000 and $50 000, plus $14 for every $1 000 or part of $1 000 above $50 000. A part of a thousand counts as a full thousand. There is also a $200 court fee to file for a grant, which is not payable if the estate does not exceed $25 000.

The personal representative must pay the probate fee before the grant is issued. If an undisclosed asset or a valuation error comes to light after the grant, the personal representative must disclose it to the court and pay the difference in fee.

• Make a diligent search for the deceased's property and liabilities.
• List each asset with its value at the date of death.
• Confirm how each property was owned: sole name, joint tenants or tenants in common.
• Set aside beneficiary-designated benefits, which are outside the estate.
• Have a lawyer or accountant check the figures before you file.

Frequently asked questions