Found an Estate Asset After Probate in BC? Extra Probate Fees

The grant has issued, the bank accounts are closed and the distribution is underway. Then a forgotten account, an unclaimed refund or a revised valuation turns up. Many personal representatives feel alarmed at this point, but the law sets out a process for it.

This article explains what British Columbia law asks of you, how the extra probate fee is worked out, and how to decide whether the new asset counts. It is general information, not advice on your particular estate.

This article covers the law of British Columbia.

Your duty once you learn of the asset

If, after the grant, you learn of an undisclosed asset or that a value in the statement of assets must be revised, you must disclose it to the court. You must also pay the government the difference between the fee already paid and any greater fee that would have been payable.

The court rules add a second requirement. If, after filing, you find assets or liabilities not referred to in your affidavit, or information that is incorrect or incomplete, you must promptly file a supplemental affidavit and pay all related fees, including applicable probate fees. The form is P14, or P15 for a non-domiciled grant.

The rules say "promptly" and do not, in the material we rely on, set a number of days. Do not wait to see whether anyone notices; a lawyer can confirm how the registry expects you to proceed.

Does the new asset count toward the fee?

Not every asset adds to the fee. The fee base is the real and tangible personal property of the deceased situated in British Columbia, plus, if the deceased was ordinarily resident in BC immediately before death, the intangible personal property wherever situated, in each case that passes to the personal representative at the date of death.

• Real estate or vehicles and household goods outside British Columbia are outside the fee base.
• Intangibles such as bank accounts and securities outside BC count only if the deceased was ordinarily resident in BC immediately before death.
• Assets that pass directly to someone else, for example by right of survivorship or a valid beneficiary designation, are outside the definition.
• Land held jointly with a right of survivorship passes to the survivor rather than the personal representative.

There are exceptions. If joint owners cannot be shown to have survived each other, or die simultaneously, each is deemed to have held the property as a tenant in common, so a share can pass through the estate. If a beneficiary designation is invalid, the named beneficiary has died, or the estate is named, the benefit may be payable to the estate and so form part of the fee base.

How the extra fee is worked out

Estates over $25,000 pay $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) above $50,000. The value is the gross value shown in the Statement of Assets, Liabilities and Distribution, and the Act has no deduction for debts or mortgages in that definition.

For an estate of $500,000, the fee is $150 on the first band plus $14 x 450 = $6,300, a probate fee of $6,450. For an estate of $1,000,000, the probate fee is $13,450. If a later discovery raises the value, the extra you pay is the difference between the fee already paid and the greater fee the revised value would attract.

Any part of $1,000 is charged as a full $1,000, so odd amounts round up when the fee is calculated. Those examples are arithmetic from the rates only; your own figures depend on the values you swear to.

Points that often cause confusion

• You pay in your representative capacity on behalf of the estate, not personally.
• No probate fee is payable if the value of the estate does not exceed $25,000, so a small estate that stays at or under that figure owes no extra fee.
• There is no fee on a grant de bonis non, a cessate grant or a double probate.
• A mortgage on the newly found property does not reduce the fee base under the Act's wording, which is based on gross value.
• How real property is valued for the Statement of Assets is a question to confirm with the registry or a lawyer, because it depends on the facts.

If the estate has already been distributed, you may be left funding the extra fee from other estate money. Whether that is possible depends on what remains, so get advice before paying anyone further.

What to do next

• Write down what the asset is, where it is held, and its value at the date of death.
• Check whether it passes to the personal representative or goes directly to someone else.
• Confirm where it is situated and whether the deceased was ordinarily resident in BC.
• Prepare the supplemental affidavit, Form P14 or P15, and do it promptly.
• Work out the difference in probate fee using the rates above and pay it.
• Keep copies of everything filed, and speak with a lawyer if values, joint ownership or foreign property are unclear.

No lawyer is required to apply for a grant, but a short consultation can be worthwhile where the amounts or ownership are uncertain.

Frequently asked questions