Can a Court Appoint a Neutral Administrator in a BC Estate Dispute?

When family members cannot agree on who should run an estate, everything can stall. Bills go unpaid, property sits, and trust breaks down. Many people ask whether the court can step in and put someone neutral in charge.

In British Columbia, there are several routes. They work differently, and each has limits. This article explains how the court can appoint an administrator, remove or pass over a person entitled to act, and when the Public Guardian and Trustee may be involved.

This article covers the law of British Columbia.

Appointing an administrator in special circumstances

Under section 132 of the Wills, Estates and Succession Act (WESA), where special circumstances make it appropriate, the court may appoint any person it considers appropriate as administrator. The appointment can come with conditions or without them.

The appointment can also be for general, special or limited purposes. That flexibility means the court may, for example, give an outsider a narrower job rather than full control, depending on what the situation calls for. Whether a family conflict amounts to special circumstances depends on the facts, so it is worth getting legal advice on your own situation.

Removing or passing over a person entitled to act

Under WESA section 158(2), a person who has an interest in an estate may apply to the court to remove or pass over a person entitled to act as personal representative. "Pass over" means granting probate or administration to someone with lower priority than the person passed over.

Subject to the will, the court may remove or pass over a person it considers should not act. The listed grounds include the following:

• Refusing to act without renouncing.
• Incapacity.
• A conviction for dishonesty.
• An undischarged bankruptcy.
• Being unable or unwilling to perform duties in a way that hampers administration of the estate.

When a creditor applies, the dishonesty-conviction and bankruptcy grounds are limited to claims above a prescribed amount. Which ground fits your situation, and whether the evidence supports it, is something a lawyer can help you assess.

What happens after removal

When the court discharges or removes a personal representative, it must appoint a substitute who consents to act, unless administration is complete or a new appointment is unnecessary. The court may also appoint the substitute as trustee.

The former representative's grant is revoked, and the substitute takes over that person's authority and duties. The court may require security from the substitute if the Supreme Court Civil Rules require it.

One point is easy to miss. Removing someone as personal representative does not by itself remove that person as trustee of any trust under the will. That needs separate relief. If the will sets up a trust, ask whether your application should also deal with the trustee role.

The Public Guardian and Trustee as a possible administrator

The Public Guardian and Trustee (PGT) may administer an estate where it is named executor in the will, or where no suitable person is willing or able to administer. Anyone aware of an estate needing administration, including family members, executors and beneficiaries, can refer it.

The PGT is not a simple fix for a family fight, for these reasons:

• No grant of administration may be issued to the PGT unless it files an affidavit swearing that no person in British Columbia is entitled to share in the distribution and ready and competent to apply.
• The court must not appoint the PGT as administrator without its prior written consent, unless it applies itself.
• The PGT may decline an estate whose assets are not enough to pay funeral costs and PGT fees.
• It usually requires consent from all or most known beneficiaries or heirs.
• It does not resolve family disputes over who should administer.

Distribution while a dispute is pending

A dispute can lawfully delay distribution. After the 210-day period that follows the issue of a grant, the personal representative may not distribute without court consent, or the consent the section requires, if a proceeding is pending that could affect distribution. This includes a proceeding to decide who the beneficiaries are and one seeking relief under the wills variation provisions.

What to do next

• Gather the will, any grant of probate or administration, and a list of known assets and debts.
• Write down what the current representative has done or failed to do, and how it has affected the estate.
• Check whether any of the listed removal grounds may fit your situation.
• Find out whether the will creates a trust, since the trustee role may need separate attention.
• Speak with a lawyer about whether to apply under section 132 or section 158, and about the time limits for any related claims.

Frequently asked questions