- In British Columbia, an applicant for administration generally does not have to provide security.
- Security can still be required if a minor or incapable person with no nominee is interested in the estate, or if the court orders it on an interested person's application.
- The Act uses the word security rather than bond, and the court may accept any form or amount or instead restrict the administrator's powers.
If someone dies without a will, a person usually has to apply to the court to be appointed administrator. Many people worry that they will need to buy a bond or guarantee before they can start.
In British Columbia the starting point is more relaxed than people expect. This article explains the general rule, the situations where security can still be required, and what to do if it is.
This article covers the law of British Columbia.
The general rule: no security
Under section 128(1) of the Wills, Estates and Succession Act (WESA), no security for administering an estate has to be provided by an applicant. So you should not assume you must buy a bond just because there is no will.
The Act uses the word security, not bond. If you see the term bond in older material or in other provinces, treat it as a general way of describing a financial guarantee.
When security can still be required
There are two exceptions to the general rule.
- A minor or incapable person with no nominee is interested in the estate.
- The court requires security on the application of an interested person.
An interested person is someone with a stake in the estate, such as a beneficiary or a creditor. Whether a particular person qualifies depends on the facts and is worth confirming with a lawyer.
The notice of proposed application in Form P1 must state that recipients may seek an order requiring security from the administrator. That statement is not required where the applicant is the Public Guardian and Trustee. This gives interested people a chance to raise the issue early.
What the court may accept
If security is required, the court may accept any form or amount of security. It may instead restrict the administrator's powers without prior court or Public Guardian and Trustee approval.
This flexibility matters. If someone asks for security, the answer may not be a commercial surety bond at all. The cost of any commercial guarantee is set by the company that provides it, so you would need to ask providers about their requirements and pricing.
Who can be administrator
The first priority to be granted administration on an intestacy is the spouse of the deceased, or a person nominated by the spouse. A child ranks next, applying with the consent of a majority of the children. In special circumstances, the court may appoint any person it considers appropriate.
If no one is willing or able to act, the Public Guardian and Trustee may administer the estate, but it may refuse if the cost of administering would exceed the value of the estate's assets. The court may appoint the Public Guardian and Trustee only with its prior written consent, or if it applies.
What to do next
Applications can be made at any B.C. Supreme Court registry, and require Form P2 and a wills notice search. You must first deliver Form P1 and wait at least 21 days before applying.
- Confirm whether a minor or incapable person is interested in the estate.
- Identify everyone who must receive notice, including creditors and the Public Guardian and Trustee where minors are involved.
- Deliver the P1 notice and note the date.
- Prepare the court forms and affidavits the Supreme Court Civil Rules require.
- If someone asks for security, speak to a lawyer about what form or amount might satisfy the court.
Frequently asked questions
Is a bond automatically required if there is no will?
No. Under the Act, an applicant does not have to provide security for administering an estate. There are two exceptions that can change this.
When might a court require security?
Security can be required where a minor or incapable person with no nominee is interested in the estate. It can also be required if the court orders it on an interested person's application.
Does it have to be a surety bond?
No. The court may accept any form or amount of security, or may restrict the administrator's powers instead. The Act uses the word security, not bond.
How would anyone know to ask for security?
The P1 notice must state that recipients may seek an order requiring security from the administrator, except where the applicant is the Public Guardian and Trustee.
Sources
- Wills, Estates and Succession Act, s. 130 — bclaws.gov.bc.ca
- Supreme Court Civil Rules, Rule 25-2(3) — bclaws.gov.bc.ca
- Province of BC, After a Death: Deal with wills and estates — www2.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a wills & estates question
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