Can a Pending Estate Dispute Stop an Executor Distributing in BC?

You are waiting for an inheritance, or you are an executor wanting to close the estate, and someone has started a court claim. It is natural to ask whether the money can still be paid out while the claim is open.

In British Columbia, the answer is often no, at least not without court consent. This article explains how the waiting period and pending claims work together, which deadlines matter, and what you can do while distribution is on hold.

This article covers the law of British Columbia.

The 210-day period and why it comes first

Under the Wills, Estates and Succession Act (WESA), a personal representative must not distribute the estate within the 210 days after the representation grant is issued, unless the court orders otherwise. A beneficiary generally cannot demand payment before that period ends.

The purpose of the period is practical. It gives people with claims time to come forward before the estate is paid out. Whether a court will allow an early distribution depends on the facts, and that is a question for a lawyer.

Why a pending claim can delay distribution after 210 days

The end of the 210 days does not automatically free the executor to pay beneficiaries. After the 210 days, the personal representative may not distribute without court consent, or the consent the section requires, if certain proceedings are pending.

• A proceeding to decide who the beneficiaries or intestate successors are.
• A claim for relief under the wills variation provisions.
• Other proceedings that may affect distribution.

A pending claim therefore lawfully delays distribution. An executor who pays out anyway may face personal difficulty, so most executors wait or seek advice and court direction.

Deadlines that decide whether a claim is pending

Claims against an estate must be started on time. Knowing the deadlines helps both claimants and executors understand when the risk of a claim has passed.

The 30-day service rule is worded in detail in the statute, so confirm the exact wording and how it applies to your situation with a lawyer. If there are minor children, or the spouse or a child is mentally incapable, the claim must also be served on the Public Guardian and Trustee.

What a beneficiary can do while distribution is held up

Waiting does not mean doing nothing. Depending on the facts, there are steps open to you if the estate seems stalled.

• Apply to remove or pass over the executor. A person with an interest in the estate may apply to the court, and grounds include being unable or unwilling to perform duties in a way that hampers administration of the estate.
• Ask for the accounts to be passed. Executors generally must obtain an order for passing their first accounts within two years of the grant, unless exceptions apply. A beneficiary can serve notice requiring accounts to be passed annually, within one month of the anniversary.
• Expect an explanation if accounts are late. A trustee who fails to pass accounts as required may be called before the court to explain why.

If an executor is removed, the court generally appoints a substitute who consents to act, and the former executor's grant is revoked. Removal as personal representative does not by itself remove the person as trustee of a trust under the will.

Practical next steps

• Note the date the grant was issued and count 210 days and 180 days from it.
• Find out whether any claim has been started, and ask for copies of any court documents.
• If you are an executor, do not distribute while a claim is pending without legal advice or court consent.
• If you are a beneficiary, write to the executor asking for an update and for accounts.
• Keep a record of messages, dates and documents.
• Speak to a lawyer promptly, because the deadlines are short and missing them can end a claim.

Frequently asked questions