What to Do If an Executor Is Hiding Estate Assets in BC

You may have noticed that a bank account never appears in the estate paperwork, or that jewellery, a vehicle or a property has vanished. Maybe the executor stopped answering your questions. Those worries are common, and they are not proof that anything is wrong.

This article explains what BC law lets you do if you suspect assets are being left out or hidden. It covers gathering evidence, the court tools that may be available, and the time limits. It is general information, and your facts will matter.

This article covers the law of British Columbia.

Start by separating suspicion from evidence

Delay, poor communication and disorganized paperwork are not the same as hiding assets. Estates can be slow, and an executor may simply be overwhelmed. Even so, the law gives you ways to check.

A person applying for a grant must make a diligent search and inquiry to find the property and liabilities of the deceased person. If you can point to an asset that was plainly missed, you can use that duty as a measuring stick.

Also keep in mind that a beneficiary generally cannot demand distribution until 210 days after the grant is issued, unless the court orders otherwise. A quiet estate in the first months is not by itself a red flag.

Gather your own evidence

Before going to court, collect what you can without confronting anyone or taking anything. Useful items include:

• Recent statements, tax slips or letters addressed to the deceased that mention accounts, investments or insurance
• Property records, vehicle information and notes about valuables you saw in the home
• Emails, texts or letters in which the executor describes the estate
• Photos or lists of items that were in the home before the death
• Any earlier will, beneficiary designations or financial planning documents you know about
• A written timeline of what you asked for and what you were told

Keep copies and dates. A clear record helps a lawyer assess whether there is a real problem and what to ask the court for.

Ask for an accounting

An executor's duties include preparing accounts that show assets, receipts, disbursements and distribution of the estate, and getting the court's approval of those accounts. A written request for an accounting is a reasonable first step.

The Trustee Act also sets timing rules. Executors, administrators and trustees under a will must obtain an order passing their first accounts within two years of the grant or appointment, unless the exceptions in section 99 apply. If a beneficiary serves notice requiring it, the representative must pass accounts annually, within one month of the anniversary. A trustee who fails to pass accounts as required may be called before the court to explain why. The exceptions and notice details should be confirmed against the full section.

What the court can do

If informal requests fail, an application to court may be the next step. The options depend on the facts, and a lawyer can tell you which fit.

For leave to sue on the estate's behalf, the court looks at whether you made reasonable efforts to get the personal representative to act, gave the required notice, are acting in good faith, and whether the proceeding is necessary or expedient to protect the estate.

If the court removes an executor, it generally appoints a substitute who consents to act, and the substitute takes over the former executor's authority and duties. Removal as personal representative does not by itself remove the person as trustee of a trust under the will, which needs separate relief.

Watch the time limits and plan next steps

A court proceeding generally must start within 2 years of the day the claim is discovered, meaning the first day you knew or reasonably ought to have known of the loss, its cause, the defendant's act, and that a court proceeding is appropriate. There is also an ultimate limit of 15 years from the act or omission. If the act was wilfully concealed, it is treated as happening on the discovery date. Fraud and trust claims have special rules, so get advice on your exact deadline.

Other deadlines may run at the same time. For example, a wills variation proceeding must be started within 180 days of the grant being issued in British Columbia.

• Write down when and how you first learned of the possible problem
• Request an accounting in writing and keep the reply
• Do not remove items from the home or confront the executor in a way that creates a dispute you cannot undo
• Speak with a lawyer early, because deadlines may already be running

Frequently asked questions