Probate Fees

A potentially significant catalyst for proper estate planning is to assist in avoiding the payment of probate fees, when appropriate to do so.

The British Columbia Ministry of Finance charges probate fees on the gross value of an estate at the time of death, when an application for a grant of probate, grant of administration or resealing is made to court in B.C. 

The fee is calculated using a tiered system which is set out in the Probate Fee Act. There is no fee charged for the amount of $25,000 and below; between $25,001 – $50,000 a fee of $6 per $1,000 is charged; and over $50,000 a fee of $14 per $1,000 is charged.

For example, an estate with the gross value of $845,000 at the time of the individual’s death would pay $0 on the first $25,000, $150 on the amount between $25,001 and $50,000, and $11,130 on the amount above $50,000, for a total probate fee of $11,280. Another way to do a quick, rough calculation is to multiply the gross value of the estate by 1.4%.

It is important to note that probate fees are only charged on the value of the assets that pass through the estate, meaning that it applies to assets that remain in the deceased’s name, alone, at the time of death – where there is no designated beneficiary or alternate planning in place. Through effective estate planning, there are a variety of ways in which assets can be set up, transferred or designated to keep assets “outside” of the estate and therefore avoid probate fees while still ensuring that the asset ultimately ends up in the hands of the intended beneficiary.

However, avoiding probate fees should never be the sole factor considered when making estate planning decisions, as modifying the ownership, registration, or designation of an asset can have significant effects on other people and factors including, capital gains and property transfer tax and can lead to unnecessary and costly litigation if not done correctly. It is important to speak to an estate planning professional who can advise you on your options and ensure that savings are made without causing unknown damage. Our estate planning lawyers at Harper Grey LLP can assist you in making these important decisions as well as all other estate related matters. Reach out to us today.