What Happens If an Estate Is Undervalued for Probate in British Columbia?

Executors often have to put a value on assets they have never had appraised. A house, a business interest or a share portfolio can be hard to price, and it is natural to worry about getting it wrong when the probate fee depends on the total.

This article explains how the value is reported, what the rules require if a value or asset was missed, and where the rules leave questions that a lawyer can answer. It does not state any penalty amount, because that depends on the facts.

This article covers the law of British Columbia.

How the value is reported

The Probate Fee Act defines the value of the estate as the gross value, as deposed to in a Statement of Assets, Liabilities and Distribution exhibited to the affidavit leading to a grant or resealing. The applicant files the affidavit of assets and liabilities, in Form P10 for a domiciled estate.

The definition contains no deduction for debts or mortgages. Confirm with the court registry how particular assets, such as real property, should be valued, since the Act speaks only of gross value.

Why accuracy matters

The fee rises with the value. When the estate is worth more than $25 000, the fee is $6 for every $1 000 (or part of $1 000) by which the value exceeds $25 000 up to $50 000, plus $14 for every $1 000 (or part of $1 000) by which the value exceeds $50 000. The probate fee must be paid before the grant issues.

A low figure therefore means a low fee at the time, but it is not the end of the matter, as the next section explains.

If you find a mistake or a missed asset

If, after the grant, the personal representative learns of an undisclosed asset or that a value in the statement must be revised, they 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 court rules add that if the applicant finds assets or liabilities not referred to in the affidavit, or information that is incorrect or incomplete, they must promptly file a supplemental affidavit (Form P14, or P15 for a non-domiciled grant) and pay all related fees, including applicable probate fees.

• Disclose the asset or revised value to the court.
• Pay the difference between the fee paid and the greater fee.
• File the supplemental affidavit promptly.

What about penalties?

The rules described here focus on correcting the figures and paying the shortfall. Whether any further consequence could apply to a knowingly understated value, and how it would be treated, depends on the facts and is something to raise with a lawyer. Acting promptly once you learn of the error is the approach the rules call for.

What to do next

• List every asset the estate holds and the source of each value you used.
• Check which assets actually pass to you as personal representative and which pass directly to someone else.
• Keep records of how you reached each value.
• If you find a missed asset or wrong value after the grant, speak to a lawyer promptly about the supplemental affidavit and extra fee.

Frequently asked questions