Avoiding Probate in BC: 5 Ways to Simplify Your Estate Settlement
Quick Answer: Avoiding probate in BC means reducing the value of the assets that pass through the court’s probate process, which lowers the fees your family pays and speeds up settlement. In BC, the probate fee is $6 for every $1,000 of estate value between $25,000 and $50,000, and $14 for every $1,000 above $50,000 — so on a $1 million estate, fees work out to roughly $13,450 before the court filing fee. Five legitimate tools can move assets outside probate: beneficiary designations, joint tenancy, alter ego or joint partner trusts, lifetime gifts, and a second will for private company shares.
Each of these tools has trade-offs, and a move that saves a probate fee can sometimes create a larger tax bill or a family dispute. This post explains how BC probate fees are calculated, walks through the five strategies in practical terms, and highlights the risks you need to weigh before using each one.
This post is for general information only and is not legal advice. If you’d like advice tailored to your estate, contact Munro & Crawford.
How Probate Fees Work in BC
Probate is the court process that confirms a will is valid and gives the executor the legal authority to deal with the estate. In BC, the fee is set by the Probate Fee Act and calculated on the gross value of the assets that pass through probate. There is no fee on the first $25,000, then $6 for every $1,000 (0.6%) on the value between $25,000 and $50,000, and $14 for every $1,000 (1.4%) on everything above $50,000, plus a roughly $200 court filing fee for most estates over $25,000.
On a $1 million estate, that works out to approximately $13,450 in probate fees ($150 on the $25,000–$50,000 band, plus $13,300 on the $950,000 above $50,000) before the filing fee. Because the fee is based on the value passing through probate, the strategies below all work the same way: they reduce that probated value or remove an asset from the estate entirely. Probate fees are only part of the cost, since legal and administrative fees for settling an estate are separate — for a full breakdown, see our guide to probate fees in BC.
5 Ways to Avoid or Reduce Probate in BC
There is no single tool that works for every estate, and the right approach depends on what you own, who your beneficiaries are, and how your assets are currently held. The five strategies below are the most commonly used in BC estate planning services:
1. Name Beneficiaries on Your Registered Accounts and Life Insurance
Registered accounts and life insurance let you name a beneficiary directly, and when you do, those assets generally pass to the named person outside your estate and outside probate. This applies to RRSPs, RRIFs, TFSAs, and life insurance policies. The payout goes straight to the beneficiary, which is faster and avoids the probate fee on that value.
There is a catch worth understanding. While the asset itself bypasses probate, the tax consequences do not always disappear. The value of an RRSP or RRIF is generally included as income on your final tax return, and your estate pays that tax, so naming a beneficiary saves the probate fee but not necessarily the income tax — a point we cover in more detail on our tax concerns after death page. Keeping your beneficiary designations current, especially after a divorce or a death in the family, is one of the simplest and most commonly overlooked steps in estate planning.
2. Hold Property in Joint Tenancy With Right of Survivorship
Assets held in joint tenancy with right of survivorship pass automatically to the surviving joint owner when one owner dies, outside the estate and outside probate. Married and common-law couples commonly hold their home and joint bank accounts this way, so the survivor keeps the asset without delay.
Joint tenancy carries real risks that deserve careful thought. Adding an adult child as a joint owner to “avoid probate” can expose the asset to that child’s creditors or to a claim in their divorce, and it can trigger an immediate capital gains issue on transfer. Courts have also dealt with disputes over whether a parent truly intended to gift the asset or only added the child for convenience. For a deeper look at how this works with real estate, see our post on gifting property to children in BC and our explanation of joint tenancy versus tenants in common. Joint tenancy can be useful, but it should be set up deliberately with legal advice, not as a quick fix.
3. Transfer Assets Into an Alter Ego or Joint Partner Trust
For those who are 65 or older, BC and federal law allow two special trusts: an alter ego trust for an individual and a joint partner trust for a couple. You transfer assets into the trust during your lifetime on a tax-deferred basis, and because the trust (not you) owns the assets at death, they do not form part of your estate and avoid probate.
These trusts can be valuable for people with significant assets who want privacy and a smooth transition, since trust assets are not part of the public probate record. They are more complex and more expensive to set up and maintain than a simple will, and they only make economic sense above a certain level of assets. They also have specific tax rules that require professional structuring. For a full explanation of how these trusts work, see our post on what an alter ego trust is, or speak with our trust lawyers in Vancouver.
4. Reduce Your Estate by Making Gifts During Your Lifetime
Assets you no longer own at death cannot be part of your estate, so giving away money or property while you are alive reduces the probate value. Many people make gifts to children, grandchildren, or charities during their lifetime, both to help family when the help is most useful and to simplify the eventual estate.
The trade-offs are important. Once you give an asset away, you lose control of it. Gifting appreciated property (such as real estate or shares) can trigger a capital gain at the time of the gift. Giving away too much can also leave you short in your own retirement or care years. Lifetime giving works best as a measured part of a coordinated plan rather than a large, last-minute transfer. For a detailed look at the legal and tax steps involved, see our post on gifting property to children in BC.
5. Use a Second Will to Protect Private Company Shares From Probate
Business owners in BC can sometimes use a multiple-wills strategy: one will covers assets that require probate, such as real estate and bank accounts, and a separate will covers assets that typically do not require probate, such as private company shares. The shares can then be administered under the second will without being included in the probate application, removing their value from the probate fee calculation. This is one area where coordinating your estate plan with business law advice pays off — our business law team in Vancouver works alongside our estate lawyers to structure this correctly.
This approach must be drafted precisely so the two wills work together without revoking each other or creating confusion. It is most relevant for owners of private corporations with significant share value. Done correctly, it can produce meaningful savings; done carelessly, it can create a serious problem for the executor, which is why it should only be set up by a lawyer experienced with the structure.
These Strategies To Avoid Probate Come With Trade-Offs
Each of these tools changes who controls an asset, when tax is paid, and how your overall plan fits together. A move that saves a probate fee can sometimes create a larger tax bill or a family dispute. For context on how BC-specific taxes interact with your estate, see our overview of tax concerns after death and our post on how to reduce estate taxes in Canada. The right mix depends on your assets, your family, and your wishes; which is why these strategies work best as part of a coordinated estate plan rather than in isolation.
Talk to a Vancouver Estate Lawyer About Your Options
There is no single best way to avoid probate, and the right combination depends entirely on your situation. A well-built estate plan looks at your home, your investments, your business if you have one, and your family, then uses the tools that reduce probate without creating new problems.
Munro & Crawford has helped Vancouver and Lower Mainland families plan their estates since 1952. We can review your assets and recommend a strategy that fits.
Frequently Asked Questions
How much are probate fees in BC?
There is no fee on the first $25,000 of the estate, then $6 per $1,000 (0.6%) on the value between $25,000 and $50,000, and $14 per $1,000 (1.4%) on everything above $50,000, plus a roughly $200 court filing fee for most estates over $25,000. On a $1 million estate that works out to approximately $13,450 in probate fees before the filing fee.
Does naming a beneficiary avoid probate?
Yes. Assets such as RRSPs, RRIFs, TFSAs, and life insurance that have a named beneficiary generally pass directly to that person outside the estate and outside probate. The income tax consequences, however, may still apply on your final return.
Is putting my child on the title of my home a good way to avoid probate?
It can avoid probate on that asset, but it carries real risks — including exposure to your child’s creditors or divorce, a possible capital gain on transfer, and disputes about whether you intended a gift. It should only be done with legal advice.
Can business owners reduce probate fees on their company shares?
Yes. A multiple-wills strategy can separate private company shares — which typically do not require probate — from assets that do, removing the share value from the probate fee calculation. The wills must be drafted carefully by an experienced lawyer to work correctly together.
How else can I reduce estate taxes in BC?
Probate fees are separate from estate taxes, and reducing one doesn’t automatically reduce the other. A comprehensive plan may also consider life insurance to cover final tax liabilities, charitable giving, and income-splitting strategies.
To simplify your estate settlement and reduce the burden on your family, speak with a lawyer who knows the BC rules inside and out.
