Do You Need Probate to Access a Bank Account in British Columbia?

When someone dies, their bank account is usually frozen until the bank is satisfied about who has authority to deal with it. Many families want to know whether they must go through probate first, or whether the money can be released more simply.

The answer depends on how the account was held, who is named to receive it, and how large the estate is. This article explains how those points connect to the probate fee, so you can ask the bank the right questions.

This article covers the law of British Columbia.

What a grant of probate does for a bank account

A grant of probate is the court document that confirms the executor's authority to deal with the deceased person's property. Banks commonly ask to see one before releasing a sizeable account that belonged only to the deceased. Each bank sets its own requirements, so the first step is to contact the bank and ask what it needs.

You do not need a lawyer to apply for a grant of probate or administration, and you can apply at any BC Supreme Court registry.

Accounts that may not need to go through the estate

The probate fee applies only to property that passes to the personal representative. Assets that pass directly to someone else at death, for example by right of survivorship or a valid beneficiary designation, fall outside that definition.

• A joint account with a right of survivorship may pass to the surviving holder rather than through the estate. Whether the survivorship right actually applies is worth confirming.
• If joint holders cannot be shown to have survived each other, or die at the same time, each is deemed to have held a joint account as a tenant in common, so the deceased's share can pass through the estate.
• A joint holding that is only a tenancy in common, with no survivorship, passes to the personal representative.
• Benefits under a plan can be paid to a designated beneficiary. If the designation is invalid, the named person has died, or the estate is named, the benefit may be payable to the estate.

How the $25,000 threshold affects cost

No probate fee is payable under the Probate Fee Act if the value of the estate does not exceed $25 000.

Above that amount, the fee is $6 for every $1 000 (or part of $1 000) by which the value exceeds $25 000 up to $50 000, plus $14 for every $1 000 (or part of $1 000) by which the value exceeds $50 000. The fee must be paid before the grant issues. A threshold under which no fee is owing does not, by itself, tell you whether a particular bank will release funds without a grant.

What counts toward the value of the estate

The value is the gross value, as deposed to in a Statement of Assets, Liabilities and Distribution, and the definition has no deduction for debts or mortgages. Bank accounts are intangible personal property. If the deceased was ordinarily resident in BC immediately before death, intangible property counts wherever it is situated, so an account held outside BC can count toward the BC fee.

Add together everything that passes to the personal representative, not only the bank account, when you compare the estate to the threshold. Land, vehicles and other assets may all matter.

What to do next

• Ask the bank in writing what documents it requires for each account.
• Find out how each account was held and whether anyone is named as beneficiary.
• List all assets and debts to estimate the estate's gross value.
• Do not move or spend funds until you know who has authority to deal with them.
• If the picture is unclear, speak with a lawyer before applying.

Frequently asked questions