Probate Fees in BC: How They Are Calculated

If you are an executor in British Columbia, one of the first questions is how much the Province will charge to issue the grant. The answer comes from a short statute, the Probate Fee Act, and a form the court requires with every application.

This article walks through the calculation step by step, with a worked example. It does not cover planning to reduce the fee; that is a separate question with its own risks.

What the probate fee is

The probate fee is a payment to the provincial government that the personal representative makes before the court issues a grant of probate or administration, or reseals a grant from another jurisdiction. It is paid on behalf of the estate, by the executor or administrator in that capacity only, so it comes out of estate money rather than the executor's own pocket.

It is separate from the court filing fees charged under the Supreme Court Civil Rules to start the application and file documents. Those are set separately; the probate fee is the part that depends on the value of the estate. If you are not yet sure a grant is needed at all, start with do you need probate in BC.

The formula in the Probate Fee Act

Section 2 of the Probate Fee Act sets out the whole calculation:

• Up to $25,000: no fee is payable if the value of the estate does not exceed $25,000.
• From $25,000 to $50,000: $6 for every $1,000, or part of $1,000, by which the value exceeds $25,000.
• Above $50,000: $14 for every $1,000, or part of $1,000, by which the value exceeds $50,000.

The words "or part of $1,000" matter. The fee is charged on each started block of $1,000, so an excess of $15,200 counts as 16 blocks, not 15.2. No fee is payable on a grant de bonis non, a cessate grant or a double probate.

Which assets count toward the value of the estate

The Act defines the "value of the estate" as the gross value, shown in the Statement of Assets, Liabilities and Distribution filed with the application, of property that passes to the personal representative at death. That covers:

• Real and tangible property in BC, such as a house or condo in BC, vehicles, furniture and other physical items located here.
• Intangible property anywhere, such as bank accounts, investments and shares, if the deceased was ordinarily resident in BC immediately before death.

Two consequences follow. First, real estate and physical items located outside BC are not included for a BC resident; they are listed separately in the affidavit but are not part of the value used for the fee. Second, property that does not pass to the personal representative is outside the calculation. Common examples are property held in joint tenancy that passes to the surviving owner, and registered plans or life insurance with a valid beneficiary designation that pay directly to the named person. Whether a particular asset really passes outside the estate can be a legal question in its own right.

How debts and mortgages are treated

The executor discloses assets in Form P10 (Affidavit of Assets and Liabilities for Domiciled Estate Grant) under the Supreme Court Civil Rules. Its Statement of Assets, Liabilities and Distribution asks for each asset's value at death, with any secured debt listed beneath the asset it charges. The form's own example shows a BC property assessed at $1,000,000 with a registered mortgage of $600,000, carried into the total at $400,000. The bottom line is the "gross value of assets less secured debts".

Unsecured debts, such as credit card balances, unpaid income tax or funeral costs, are not deducted from that figure. They still have to be paid from the estate, but they do not lower the probate fee.

A worked example

The following figures are illustrative only. Suppose a BC resident dies owning a Vancouver condo assessed at $750,000 with a registered mortgage of $250,000, a bank account of $90,000, and a car worth $10,000. A TFSA with a named beneficiary pays directly to that person, and there is a $15,000 credit card balance.

• Value of the estate: $500,000 (condo less mortgage) + $90,000 + $10,000 = $600,000. The TFSA is left out because it does not pass to the executor, and the credit card debt is not deducted.
• First band: $50,000 − $25,000 = $25,000, which is 25 blocks of $1,000 at $6 = $150.
• Second band: $600,000 − $50,000 = $550,000, which is 550 blocks at $14 = $7,700.
• Probate fee: $150 + $7,700 = $7,850, plus the separate court filing fees.

A smaller estate shows the rounding rule. If the value were $40,200, the excess over $25,000 would be $15,200: 16 started blocks at $6, or $96.

Valuation questions and later-discovered assets

Values are as at the date of death. For real property, the Form P10 example lists market value as shown on a BC Assessment notice. If the assessment does not reflect what the property was worth at death, ask whether an appraisal is needed; either way, an executor should be able to support the figure used. Investments are usually valued from statements as of the date of death.

If an asset is found after the grant, or a value has to be revised, section 2(4) of the Act requires the personal representative to disclose it to the court and pay the difference between the fee already paid and the fee that would have been payable. In practice that is done with a further affidavit of assets and liabilities in Form P14, and the applicant's Form P10 includes a promise to pay any additional fee.

Calculating is not the same as planning

Because joint ownership and beneficiary designations change what passes to the executor, people often ask whether they should restructure assets to cut the fee. Those steps can have tax, family and creditor consequences that outweigh the saving. We cover them in reducing probate fees in BC: what works and what backfires. For the application itself, see applying for probate in BC.

Preparing a probate application? Get the asset list and figures right first

Our probate and estate lawyers can help you identify which assets pass through the estate, value them for Form P10, and prepare and file the application.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.