My Loved One in BC Died Without a Will; Now What?

When your loved one dies without a will in BC, you will need to secure their residence, locate important documents, and obtain death certificates. You will then apply to the court to become the estate administrator, following the Wills, Estates and Succession Act (WESA) for asset distribution. The law prioritizes spouses and children, followed by other relatives. Understanding the specific steps and legal requirements will help you navigate this challenging process more effectively. Vest Estate Law can help answer any questions you may have and can assist you with the estate administration process.

Key Takeaways

• Secure the deceased’s residence and valuable assets immediately, then gather important documents like bank statements and identification papers.
• Apply to the BC Supreme Court to be appointed as estate administrator, with priority given to spouse, then children, and then other persons or companies who wish to apply, such as a creditor of the deceased.
• Create a detailed inventory of all assets and debts for the court application process and estate administration.
• Distribution follows WESA rules: spouse gets household items plus $300,000, with remaining assets split between spouse and children.
• Contact the Public Guardian and Trustee if minor children are involved, as they will manage the children’s inheritance portions.

Understanding Intestacy in British Columbia

When someone dies without a valid will in British Columbia, they are considered to have died “intestate,” which means their estate will be distributed according to the province’s Wills, Estates and Succession Act (WESA).

You will find that intestacy can create significant challenges for families, as the law’s predetermined rules do not consider personal wishes or unique family circumstances.

Nearly half of BC adults do not have an up-to-date will, which often leads to confusion and stress for those left behind.

Under intestacy rules, your loved one’s estate distribution follows a strict order. Their spouse typically receives priority, followed by children, parents, and other relatives.

If no eligible relatives exist, the estate will pass to the BC government – an outcome that most people would not choose for their assets.

First Steps After the Death of an Intestate Person

After discovering that your loved one has died without a will, you will need to take several immediate steps to manage your estate properly.

First, secure their residence and valuable assets, then locate important documents like bank statements, tax returns, and identification papers. You will need to apply to the court to be appointed as the estate’s administrator, as someone must have the legal authority to handle the deceased’s affairs.

Contact the funeral home to arrange services and obtain the death certificates. You should also notify government agencies, banks, and other institutions of the death.

Create a detailed inventory of the deceased’s assets and debts, as you will need this information for the court application and eventual distribution according to BC’s intestacy rules.

Asset Distribution Under WESA Rules

The Wills, Estates and Succession Act (WESA) sets clear rules for distributing assets when someone dies without a will in British Columbia.

If you are married or in a marriage-like relationship of at least two years, you will inherit the entire estate if there are no children. However, if there are children, you will receive household furnishings plus a preferential share, with the remaining assets split between you and the children.

If there is no surviving spouse, the children will inherit the estate in equal shares.

When there are no any immediate family members, the estate passes to other relatives in a specific order: parents first, then siblings, followed by grandparents and cousins.

If no eligible relatives can be found, the estate will escheat to the provincial government.

The Role and Appointment of an Estate Administrator

Managing an intestate estate requires someone to step into a leadership role, and that is where an administrator comes in. Since there is no will naming an executor, the court must appoint an administrator to handle the deceased’s affairs.

You will need to apply to the court for a grant of administration if you are eligible to serve. The law gives priority to certain individuals: first to the spouse, then to children, followed by other relatives.

Once appointed, you will take on responsibilities similar to an executor, including gathering assets, paying debts, and distributing the estate according to WESA rules.

You Will also need to keep detailed records, notify beneficiaries, and guarantee all legal requirements are met throughout the administration process.

Protecting the Rights of Minor Children

When loved ones pass away without a will, children under 19 face unique challenges that require special protection and consideration.

Without proper estate planning, the Public Guardian and Trustee (PGT) automatically becomes the property guardian for minor children, managing their inheritance until they turn 19. This means you will need to work with the PGT to access funds for the children’s care and education.

If you are a family member who wants to become the children’s guardian, you will need to apply to the court.

The court will assess your application based on the children’s best interests. You should gather documentation about your relationship with the children, your ability to care for them, and your financial stability to support your application.

Spousal Entitlements and Property Division

Spousal rights in British Columbia provide significant protections for surviving partners when someone dies without a will. If you are a surviving spouse, you will receive all household furnishings and a preferential share of the estate.

When there are no children, you will inherit the entire estate. However, if your partner had children, you will receive the first $300,000 of the estate’s value plus half of any remaining assets. If the deceased had children from a previous relationship, your preferential share drops to $150,000.

To qualify as a spouse, you must have been legally married or living in a marriage-like relationship for at least two years before your partner’s death. The law treats both types of relationships equally when distributing assets under intestacy rules.

Legal Options for Family Members

Family members have several legal options available if their loved one dies without a will in British Columbia.

You can apply to the court to be appointed as the estate’s administrator, which gives you legal authority to manage the deceased’s affairs. If multiple family members want to be administrators, you will need to follow WESA’s priority order, with spouses having first priority, followed by children.

You can also apply for guardianship of any minor children through the court system, though you will need to prove you are the best candidate for this role.

Managing Estate Debts and Taxes

Beyond securing legal authority to manage the estate, administrators must address outstanding debts and tax obligations.

You will need to file a final tax return for the deceased and pay any taxes owed before distributing assets to beneficiaries. This includes income tax, property tax, and any other outstanding government obligations.

You are required to notify creditors of the death and settle valid debts using estate assets.

If there are not enough assets to cover all debts, you will need to follow BC’s legal priority order for payment. Some debts may need to be written off if the estate is insolvent.

Keep detailed records of all financial transactions and consider seeking professional tax advice, as you could be personally liable for any errors in managing estate debts or distributing assets before paying taxes.

Timeline and Cost Considerations

When settling an intestate estate, you will need to take into account both timing and financial implications carefully.

You will face various expenses, including court filing fees for the grant of administration, which are currently $200.

Additional costs you will encounter include legal fees for administrator applications, asset valuation services, and accounting expenses. You may also need to pay for an advertisement to notify potential creditors.

The administrator can claim reasonable compensation for their time, usually between 1-5% of the estate’s value.

Be prepared for unexpected delays if the estate includes complicated assets like businesses or international properties.

Conclusion

When your loved one dies without a will in BC, you will need to navigate complex intestacy laws and court processes. By understanding WESA rules, securing the grant of administration, and following proper asset distribution guidelines, you can manage the estate effectively. Remember to protect minor children’s interests, address spousal rights, and handle debts appropriately. While challenging, taking these systematic steps guarantees you will fulfill your legal obligations and honour your loved one’s legacy.