How Does an Executor Handle a Deceased Person's Bank Accounts in BC?

When someone dies, their bank accounts are usually frozen or restricted once the bank is told. As executor, you may be unsure what you can do before probate, what the bank will ask for, and how to pay bills in the meantime.

This article explains the general picture in British Columbia. Banks have their own procedures and joint accounts can work differently, so expect to confirm the details for your situation.

This article covers the law of British Columbia.

Your authority over the accounts

A deceased person's estate vests in the personal representative once that person takes office or is appointed. A personal representative has the same authority over the estate as the deceased would have had, subject to the will and to other laws.

In practice, a bank will usually want proof of that authority before it releases money.

Before probate: what banks will do

Each financial institution sets its own policy, often a maximum amount it will release without a grant of probate. Some banks will release small balances early and others will not, so call each institution and ask what it requires.

• Tell the bank about the death and ask what documents it needs.
• Ask whether it will release funds for funeral costs or other urgent bills.
• Ask for a statement of the balance on the date of death.
• Find out whether it needs a grant before releasing anything else.
• Keep a record of every call, letter and payment.

Finding all the accounts is part of the job. Anyone applying for a grant must make a diligent search and inquiry for the deceased's property and liabilities.

Getting a grant so the bank will release funds

Applications for probate or administration are made at any BC Supreme Court registry. The applicant must submit an Application for Search of Wills Notice, even if they believe they already hold the original last will.

The applicant must also first deliver a notice of proposed application (Form P1) to the persons the Supreme Court Civil Rules require, then wait at least 21 days before applying. The application includes an affidavit of assets and liabilities, which is Form P10 for a domiciled estate. For a non-domiciled estate the equivalent form is Form P11, and either affidavit is a required part of the grant application.

No probate fee is payable if the estate is worth $25,000 or less. Above that, fees are charged on the estate value under the Probate Fee Act.

Joint accounts and paying bills

Joint accounts can be treated differently from accounts held only in the deceased's name. Whether the money passes to the surviving account holder or forms part of the estate can depend on how the account was set up and on the intentions behind it. A lawyer can help you sort this out before you move or pay out any funds.

Be careful with bills. BC government guidance lists paying valid debts as an executor's basic duty, but also warns that an executor who distributes the estate while debts remain unpaid may be held personally liable for them. Pay only debts you are satisfied are valid, keep receipts, and do not distribute to beneficiaries until you know what is owed.

A personal representative may publish a notice to creditors and other claimants in the Gazette, setting a deadline of at least 30 days. Tax matters also need attention before distribution, as a legal representative must obtain a clearance certificate from the Minister of National Revenue first.

What to do next

• List every account, including joint accounts, and ask each bank for its requirements.
• Keep a separate record of money in and out.
• Pay only valid debts and keep proof of each payment.
• Prepare the grant application if the banks will not release the funds.
• Ask a lawyer about joint accounts or any account where ownership is unclear.
• Do not distribute until debts and tax are dealt with.

Frequently asked questions