Do BC Banks Require Probate to Release a Deceased's Funds?

When someone dies, their bank account is usually frozen until the bank is satisfied about who has authority to deal with it. For a grieving family, that can mean bills going unpaid and no clear timeline.

This article explains how banks in British Columbia decide whether they need probate, why they ask for it, and which assets may not need it at all.

This article covers the law of British Columbia.

What the law says, and what it leaves to the bank

No BC statute lists which estates must be probated. In practice, a grant is needed when an organization holding the deceased's assets asks for one. Agencies and financial institutions can require a will to be probated before they accept it and transfer assets to the executor, and each has its own policy.

That means there is no single dollar amount below which every bank must release funds without a grant. A $25 000 figure does appear in the law, but only for fees: no probate fee is payable if the value of the estate does not exceed $25 000, and no $200 court filing fee is payable for an estate of $25 000 or less. Those exemptions do not decide what a bank will ask for, and whether a grant is still needed depends on the institution holding the assets.

Why banks ask for a grant

A grant of probate certifies that the will is real, was made without fraud or undue influence, and is the last will the person made. It gives the personal representative exclusive authority to administer the estate under the grant's terms.

A third party that pays or transfers estate property to the personal representative before having notice that the grant was revoked is protected from liability, even if the grant was defective. That protection is why banks want to see one.

Assets that may not need a grant

The LTSA registration fee for a joint tenancy transmission is $82.52 per parcel, plus $10.30 for the Transparency Declaration, and the survivorship exemption means no property transfer tax is paid. If any owner is a corporation, trustee or business partner, LTSA says to contact a legal professional.

How a particular bank account or other asset is held can change the answer, so confirm this with the bank or a lawyer.

If the bank insists on a grant

• If there is a will naming an executor who can act, the executor applies for a grant of probate.
• If there is no will, no named executor, or the executors cannot or will not act, someone applies for a grant of administration instead.
• Applications go to the Supreme Court of British Columbia, at any registry, and you do not need a lawyer to apply.
• Before applying, the applicant must deliver a Form P1 notice and wait at least 21 days.

Court processing times vary by registry and backlog, so ask the registry for current information. In the meantime, ask the bank whether it can pay funeral costs or other urgent bills, since policies differ.

What to do next

• Call each bank and ask what documents it needs for an account in the deceased's name, and write down what you are told.
• Gather the death certificate and the will, and find out who is named as executor.
• List which assets have a designated beneficiary or are held in joint tenancy, since these may pass outside the estate.
• Do not distribute funds to beneficiaries until you have checked the timing rules and tax clearance. A representative who distributes without a Canada Revenue Agency clearance certificate is personally liable for unpaid amounts, up to the value of the assets distributed.
• Ask a lawyer if the bank's requirements are unclear, if the estate includes land in the deceased's sole name, or if family members disagree.

Frequently asked questions