Estate Information Return in British Columbia: What Applies

If you have been told to file an estate information return after receiving a grant, you may be looking at an Ontario requirement. British Columbia works differently, and it helps to know what you actually have to file here.

This article explains the BC equivalent, when it is filed, what to do if it is wrong or incomplete, and which tax returns can still be part of your job. A lawyer or accountant can confirm the details for your estate.

This article covers the law of British Columbia.

Is there an estate information return in BC?

The name estate information return comes from Ontario. In British Columbia, the similar disclosure is the Statement of Assets, Liabilities and Distribution. The Probate Fee Act refers to the gross value of the estate as sworn in that statement, which is attached to the affidavit leading to a grant or resealing.

The applicant files the affidavit of assets and liabilities, Form P10 for a domiciled estate, under Rule 25-3(2)(g) of the Supreme Court Civil Rules. If the deceased was not domiciled or ordinarily resident in BC at death and property outside BC is or will be administered abroad, the applicant may file Form P11 instead.

The value reported is the gross value, and the Act contains no deduction for debts or mortgages in that definition. The fee base covers real and tangible personal property in British Columbia and, if the deceased was ordinarily resident in BC immediately before death, intangible personal property wherever situated, in each case that passes to the personal representative. Assets that pass directly to someone else, for example by right of survivorship or a valid beneficiary designation, are generally outside that definition, so check each asset against it. There are exceptions: if joint tenants cannot be shown to have survived each other, or die simultaneously, each is treated as holding as tenants in common, so the deceased's share can pass through the estate, and a joint holding that is only a tenancy in common passes to the personal representative. 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 form part of the fee base. How this applies to your estate depends on your situation, so it is worth confirming with a lawyer.

When it is filed

Under Rule 25-3(7), the affidavit of assets and liabilities may be filed at the same time as, or after, the other application documents. It is one of the documents the applicant files under Rule 25-3(2)(g) as part of the application.

The probate fee is paid before the grant issues, and the registrar issues the grant once all fees payable on the filing, including probate fees, have been paid. Because the fee is based on the value you report, accuracy at this stage matters.

As an example, an estate valued at $500,000 owes a probate fee of $6,450, and any part of $1,000 is charged as a full $1,000. The probate fee is in addition to the court fees to start the proceeding and to file documents in it.

If it is late, wrong or incomplete

If, after filing, you find assets or liabilities not referred to in the 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 Form P14, or Form P15 for a non-domiciled grant.

After the grant, if you learn of an undisclosed asset or that a value must be revised, you must disclose it to the court and pay the government the difference between the fee paid and any greater fee that would have been payable.

The rules use the word promptly rather than a set number of days. Any consequences of delay depend on the facts, so ask a lawyer if you are concerned.

• Initial disclosure: Form P10 or P11 with the application.
• Corrections after filing: Form P14, or Form P15 for a non-domiciled grant.
• Extra probate fee: the difference between the fee paid and the greater fee owed.

Tax returns are separate

Court disclosure is different from tax reporting. Property is generally treated as disposed of just before death at fair market value, and any gain is reported on the deceased's final return. The legal representative must file the final T1 return, and a T3 return may be needed for the estate.

The capital gain can be deferred when property is transferred to a surviving spouse, common-law partner or a qualifying spousal trust, and this is elected on the final return. RRSP and RRIF amounts are reported as income on the final return, and earnings after death on investments that were in a TFSA are reported by the estate on the T3 return. Filing dates depend on the facts, so confirm them with the Canada Revenue Agency or an accountant.

What to do next

• Find your filed Form P10 or P11 and compare it to your asset records.
• List any asset, debt or value that is missing or has changed.
• File a supplemental affidavit promptly if something is wrong.
• Work out whether more probate fee is owed.
• Speak with an accountant about the final T1 and any T3 return.
• Ask a lawyer if you are unsure what to correct.

Frequently asked questions