Probate can feel like the finish line. You’ve filed the forms, sworn the affidavits, and received the Grant of Probate or Administration from the BC Supreme Court. Then, months later, an old bank statement turns up, a insurer sends a cheque for a forgotten life insurance policy, or a distant relative mentions a savings bond you never knew existed.
So what happens now? The short answer: it’s a common situation, and BC’s probate system has a specific process for it. Here’s what executors and administrators need to know.
Why Are Estate Assets Sometimes Discovered Later?
Even a careful executor may not know about every estate asset a person owned at the time of their death. Estates can be more complicated than they first appear, particularly when the deceased did not keep accurate records or managed their finances independently.
Assets that may be discovered later can include old or dormant bank accounts, investments or shares, refunds or money owing to the deceased, interests in property, or the contents of a safety deposit box.
Sometimes an asset may not even become apparent until months after the death.
Finding something later does not necessarily mean that something went wrong during the original probate application. The important question is what the executor needs to do once the additional asset has been discovered.
What Happens When a New Asset Is Discovered?
If an asset that should have been included in the original probate application is discovered later, the executor generally needs to update the information provided to the court.
Under the BC Supreme Court Civil Rules, if an applicant learns that an asset or liability was omitted from the original affidavit of assets and liabilities, or that information previously provided was incorrect or incomplete, the applicant must promptly file a supplemental affidavit of assets and liabilities. This requirement applies even if the additional asset is discovered after the Grant of Probate or Administration has already been issued.
For an estate where the deceased was domiciled in British Columbia at the time of death, this will generally involve filing Form P14, Supplemental Affidavit of Assets and Liabilities for Domiciled Estate Grant. A different form may apply where the deceased was not domiciled in BC.
The supplemental affidavit allows the court record to be updated without requiring the executor to start the entire probate application again.
You’ll Likely Owe Additional Probate Fees
Because BC probate fees are calculated based on the value of the estate, discovering a new asset may mean additional probate fees are owing.
As a general guide, probate fees in BC are calculated as follows:
1.) No probate fee applies to the portion of an estate under $25,000
2.) Roughly $6 per $1,000 of value between $25,000 and $50,000
3.) Roughly $14 per $1,000 of value above $50,000
If a newly discovered asset increases the value of the estate that was originally reported to the court, the executor may need to pay the additional probate fees that would have been payable if the asset had been included from the beginning. See our probate fee calculator here, but be sure to put the total value of the whole estate, not simply the value of the new asset in the calculator, as the probate fee is discounted for the first $50,000 of gross estate value.
Does the Executor Need a New Grant of Probate?
Generally, no.
The original Grant of Probate or Administration continues to give the executor or administrator legal authority to act. Instead of starting the probate process again, a supplemental affidavit is used to update the information previously provided to the court, and any additional probate fees owing can be paid.
That said, more complicated situations, such as discovering real property or an asset located outside British Columbia, may require additional steps. It is worth confirming the appropriate process before attempting to sell, transfer or distribute a significant newly discovered asset.
When It Gets More Complicated
Most newly discovered assets can be dealt with without starting the probate process over again. However, there are some situations where an executor should be particularly careful.
The Estate Has Already Been Fully Distributed
If beneficiaries have already received what was intended to be their final distribution and another asset appears, the executor may still need to collect and distribute the new asset according to the will or, if there is no will, BC’s intestacy rules.
This does not necessarily mean that everything already distributed needs to be undone. However, the executor should consider whether the new asset affects previous distributions, taxes or beneficiary entitlements before distributing it.
The Wills Variation Period Is Still Open
Under British Columbia’s Wills, Estates and Succession Act (WESA), a spouse or child of the deceased generally has 180 days from the date the representation grant is issued to start a wills variation proceeding.
If a newly discovered asset significantly increases the value of the estate, it could be relevant to an existing or potential wills variation claim. An executor should therefore be cautious about distributing the newly discovered asset during this variation period.
It Is Not Clear Who the Asset Belongs To
Sometimes the difficult question is not how to distribute an asset, but whether it actually belongs to the estate.
This can arise with jointly held property, accounts or policies with designated beneficiaries, business interests or other assets where ownership may not be straightforward.
Before including or distributing an asset as part of the estate, the executor should be satisfied that the asset actually forms part of the estate.
There Are Tax Implications
A newly discovered asset can also have tax consequences. For example, an investment account may affect income or capital gains previously reported by the deceased or the estate.
This can be particularly important if the executor has already obtained a clearance certificate from the Canada Revenue Agency. Where newly discovered property affects amounts of income or capital gains previously reported, another clearance certificate and another estate tax return may be required before that property is distributed.
Depending on the nature of the asset, advice from the estate’s accountant or tax professional may be appropriate.
Steps to Take When You Find a New Asset
If you discover another asset after probate has already been granted, the exact process will depend on the estate and the type of asset involved. Generally, an executor should:
1.) Confirm and document the asset and how it was discovered.
2.) Determine the appropriate value of the asset for the probate filing.
3.) File the appropriate supplemental affidavit with the court registry where the original probate application was filed.
4.) Pay any additional probate fees that are owing.
5.) Consider any tax, beneficiary or other legal issues before distributing the asset.
6.) Update the estate records and accounting to reflect the newly discovered property.
Once the necessary court, tax and administrative requirements have been addressed, the executor can deal with the asset and distribute it according to the will or applicable intestacy rules.
Get Help With a Newly Discovered Estate Asset in BC
At Westcoast Wills & Estates, our experienced probate and estate lawyers assist clients throughout North Vancouver, Vancouver, Burnaby, Surrey, Richmond and surrounding communities with probate and estate administration, including situations where additional assets are discovered after an estate grant has been issued.
If you have discovered an additional asset belonging to an estate and are unsure what to do next, our team can help you determine the appropriate steps and ensure the asset is properly dealt with as part of the estate administration.
To get started or to learn more, contact our office to book a consultation today.
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