1.What is included in my estate?
Generally, assets that are in your name would be included in your estate. Exceptions are assets that you hold jointly with another - those assets will go to the surviving owner, and assets for which you are able to designate a beneficiary - such as RRSPs and insurance policies. The dollar value of the assets actually in your name that are not held jointly or designated to a beneficiary form the assets that comprise your estate, and it is the dollar value of those assets that are used to calculate probate fees.

2.Probate......What is meant by the term "probate"?
Probate is the court order that is issued by the Supreme Court of British Columbia allowing your executor to "execute" the provisions of your will. Probate is the legal sanction to your executor to carry out the terms of your will and distribute your estate in the manner described in your will.Your executor requires a Grant of Probate before he can obtain control of a number of the assets in your estate including investments held in financial institutions, real estate and the like. Once the Grant is obtained, an executor can then proceed to liquidate the estate in preparation for distributing it as set forth by your will. If there are persons that have an entitlement under the Wills Variation Act to make application to vary your will, the executor must wait 6 months from date of probate prior to distributing your estate or alternatively, obtain the consent of all those persons who are entitled to apply and/or named in the will to an earlier distribution. An executor must also obtain a Clearance Certificate from Revenue Canada before wholly distributing your estate.

3.How much are probate fees in the province of British Columbia?
Probate fees are calculated on the value of your estate, at date of death, in accordance with the following formula:

For example, probate fees on an estate of $350,000.00 would be $4,550.00; an estate of $500,000.00 would be $6,650.00. Assets held in joint tenancy or assets that do not pass through your estate, but by way of a designated beneficiary, (ie RRSPs and life insurance policies) are not included in your estate for the purpose of calculating probate fees.

4.What are the tax consequences of my death?
Following your death, your executor will be responsible for ensuring that your tax return for the calendar year in which you have died (T1 Date of Death Return) is prepared and filed. At the same time, your executor will also be required to ensure that a final tax return (T3 Estate Return) is filed which effectively "closes your account" at Revenue Canada. This return will deal with any taxable dispositions that resulted from your death, ie capital gains that must be paid if you held any capital investments at the time of your passing. Following the filing of the final return, a clearance certificate is issued by Revenue Canada which then allows the executor to complete distribution of the estate. Executors can be held personally liable for ensuring that the tax returns are prepared accurately and the tax owing is paid.

5.How long does it usually take to administer an estate?
This is one of the questions most frequently asked by executors and beneficiaries. At McConnan Bion O'Connor & Peterson we assist executors in preparing all the documentation necessary to obtain probate of the estate and thereafter to administer in accordance with the terms of the will. At times this process seems to take forever; but that is generally because the law requires that beneficiaries be notified in a certain manner, that they consent to certain steps being taken, and that those notifications and consents all be recorded and be in hand at the time application for probate is made. Therefore when delays are encountered as a result of a beneficiary not returning documents promptly or where a beneficiary cannot be immediately located, this can slow down the entire process. Once application for probate is made, it generally takes 3 to 4 weeks before the Grant of Probate is actually issued by the court. Once the Grant of Probate is issued then it simply becomes a matter of liquidating those assets that have to be liquidated and getting the estate into a form that can be distributed among the beneficiaries. It all takes time, but at McConnan Bion O'Connor & Peterson we strive to ensure the estate is administered as quickly as is possible given the practical and legal constraints.