How Long Do Creditors Have to Claim Against an Estate in British Columbia?

When someone dies owing money, executors and beneficiaries often ask how long creditors can wait before bringing a claim. The honest answer is that several different clocks can apply, and which one matters depends on the type of claim and what the executor has done.

This article walks through the main time limits in British Columbia and how they fit together. It is general information, and a lawyer can confirm which deadline applies to a specific claim.

This article covers the law of British Columbia.

A claim does not end because the person died

A cause of action against a deceased person is not annulled by the death alone. A claim can continue against the estate, with the personal representative as the party. So a creditor does not lose a claim simply because the debtor has died.

The Limitation Act clocks

Under the Limitation Act, a claim must not be commenced more than 2 years after the day on which it is discovered. A claim is discovered on the first day the person knew or reasonably ought to have known that injury, loss or damage had occurred.

There is also an ultimate limit. A claim must not be commenced more than 15 years after the day on which it arose, with the extensions the Act lists.

The clock can restart for a debt. A written, signed acknowledgement of liability, or part payment of a liquidated sum, can restart the Limitation Act clock. This matters if the deceased made a partial payment or signed something acknowledging a debt.

The 180-day dispute notice

WESA s. 146 lets a personal representative give written notice disputing a claim against the estate. If the claim is already due, the claimant must then start a proceeding within 180 days after notice is given, and if no proceeding is started in time, the claim is forever barred.

The 180-day period does not apply to beneficial-interest claims by beneficiaries or intestate successors, or to wills variation claims. It is also separate from the 2-year and 15-year periods, because the Limitation Act does not apply to a claim for which another enactment sets its own period, except as that enactment provides.

Notice to creditors in the Gazette

A personal representative may publish a notice to creditors in the Gazette. The notice requires claims to be presented within a stated period that must not be less than 30 days from the date of publication. After that period ends, the representative is not liable for claims that were not presented in time.

The exception is important. The notice does not prejudice a creditor's right to recover estate assets from whoever received them, so a creditor who missed the deadline may still pursue the recipients of distributed assets.

How the timelines compare

A wills variation claim, where a spouse or child asks the court to vary a will for adequate maintenance and support, sits outside the creditor timeline. The executor also generally must not distribute within 210 days after the grant, except by court order or with the consent of all beneficiaries and all persons who may bring a wills variation claim.

What to do next

• Record the date of death, the date each claim arose and the date you learned of it.
• Keep any signed acknowledgements or part payments, since they can restart the clock.
• Decide whether to publish a notice to creditors and whether to dispute any claim in writing.
• Diarize 180 days from any dispute notice and the end of any Gazette notice period.
• Wait out the 210 days after the grant unless everyone entitled consents or the court orders otherwise.
• Ask a lawyer to confirm which deadline governs any large or unusual claim.

Frequently asked questions