A person’s estate needs to be settled after they’ve passed away. Whoever is in charge of settling the estate—either the executor or an administrator—has many duties and responsibilities. It’s a big job, including tasks such as organizing the funeral, filing tax returns, and distributing assets to beneficiaries.
The executor or administrator may also need to bring a probate application to settle the estate. The probate process in BC is quite intricate and many complications can arise. While there is no official requirement to hire a probate lawyer, there are many benefits to doing so. Most people have no experience with the probate process and feel overwhelmed by the massive responsibilities imposed on executors and administrators. On average, the cost of legal fees for obtaining a grant of probate can range between $3,500 to $7,500.
Working with a lawyer will provide you with much-needed support, peace of mind, and access to additional resources to make the probate process go as smoothly as possible. Our knowledgeable probate lawyers with over 20 years of experience under their belts can guide you through the probate process, provide solutions to resolve will disputes among beneficiaries, and protect your legal interests. If you want to know more about how we can help after a loved one’s death, reach out to Onyx Law Group for a consultation.
If you are appointed as the personal representative of a loved one’s estate, you will undoubtedly have questions about the legal process and steps you must take to fulfill your role. Today’s article will explain why it’s recommended that you work with a probate lawyer and what fees and expenses to expect in the estate administration process.
How Much Are Lawyer Fees for Probate in British Columbia?
Fees will vary based on the services you hire the probate lawyer to provide. For example, you can hire a probate lawyer to assist with filing the probate application only, or you can hire a probate lawyer to assist with both filing the application and administering the estate once the estate grant has been obtained.
Legal fees also depend on factors unique to the lawyer (such as the lawyer’s years of experience, level of expertise, and where they are located) and factors unique to the estate matter itself (such as the size of the estate, the complexity of the estate, and whether the grant of probate is contested). See below for a discussion of additional factors that can impact the fees paid.
What Is the Average Cost of a Probate Lawyer in BC?
The average cost to obtain a grant of probate typically ranges from $3,500 to $7,500 in legal fees, plus disbursements and taxes, which may add an additional $1,000 to $2,000. If further legal services are provided by the lawyer after the estate grant has been issued (for example, assistance with administering and distributing the estate), those fees will be in addition. Remember that reasonable legal fees are a proper expense of the estate.
The best approach is to speak with the lawyer to determine the scope of work, the estimated costs of the probate application, and the potential for any complicating factors that may increase the time or cost associated with obtaining an estate grant from the Supreme Court.
Why Hire a Lawyer for Probate in BC?
Even if there are no disputes and the estate is relatively simple, an executor or administrator should seek legal advice and guidance as needed. Reasonable fees charged by a probate lawyer are paid by the estate, not the executor or administrator personally.
There are many benefits to having legal assistance. Probate lawyers can determine if probate is required (not all wills require probate), prepare the necessary paperwork to get court orders to facilitate the process, help identify and inventory estate assets and debts (necessary for the Statement of Assets and Liabilities), and help determine the value of the estate.
A skilled probate lawyer can also streamline the process of administering the estate. An executor or administrator handling the estate on their own is more likely to make mistakes or overlook important steps, which can cause delays and increase costs. Probate lawyers can also provide legal advice on the validity of any claims against the estate, and manage/resolve disputes among family members should they arise (e.g., wills variation claims by a surviving spouse or disinherited child, unequal inheritance between siblings, etc.).
How Are Lawyer Fees for Probate in BC Determined?
Different lawyers offer different payment options, so you should do some research before choosing a lawyer. Some charge fees based on an hourly rate, contingency, or a fixed fee. Here is a brief overview of common fee structures.
Hourly rate
The lawyer might bill the client based on an hourly rate, and invoice the client regularly for work done, along with out-of-pocket costs such as court filing fees, photocopies, couriers, etc. To ensure payment, a retainer (money paid up front) is requested, and the client is asked to top up the retainer when the retainer balance is running low.
Flat fee
The lawyer can charge a set fee for specified work, plus disbursements (out-of-pocket expenses). For example, a probate lawyer may have a standard fee for preparing and filing a probate application where there is a will, and a different standard fee for preparing and filing a probate application where there is no will. The lawyer may also charge a flat fee for estates valued under a certain amount and a different flat fee for estates valued over a certain amount.
Contingency fee
With this option, which is commonly used in estate litigation matters, the lawyer and client enter a contingency fee agreement. The lawyer doesn’t receive payment for their services until the case has been resolved either by way of settlement or trial. At the resolution of the file, the lawyer takes a percentage from the final award.
At Onyx Law Group, both hourly rate and contingency options are possible for estate law cases at the lawyer’s discretion.
Factors Influencing Lawyer Fees
The size of the estate and the complexity of the estate are two of the key factors that influence legal fees. Generally speaking, larger estates with many assets lead to higher legal fees. Smaller estates with fewer assets are typically less time-consuming to manage, resulting in lower fees.
Complex estates that require more expertise will most likely result in higher fees paid. Factors that increase the complexity of the estate include the number of beneficiaries and the type of property owned by the deceased person (e.g., business interests, trusts, high-value investment portfolios that require addition expertise to manage).
There are of course other factors that can complicate the process and result in higher fees, including:
- difficulty discerning the identity of or location of beneficiaries
- problems dealing with foreign assets owned by the deceased person (e.g., a vacation property in Mexico, a cabin in Alberta, a cottage in Washington)
- difficulty identifying estate assets, such as in the case of poor or no records, or difficulty obtaining information from institutions in other jurisdictions
- disputes between competing applicants, such as where an alternate executor seeks to be appointed ahead of the primary executor
- disputes arising among beneficiaries and family members (e.g., wills variation claims; challenges to the will’s validity)
- the involvement of the Public Guardian and Trustee in some cases when there is a minor or disabled beneficiary.
Other Expenses Involved in Probate
There are other expenses involved in probating an estate that must be budgeted for. Tax debts of the estate must be paid from the estate. It may be necessary for the executor or administrator to retain other professionals to provide services (accountant, tax lawyer, appraiser to determine the value of estate estates, etc.).
Executors and administrators are entitled to be reimbursed for reasonable expenses incurred, and those are payable from the estate. The personal representative of the estate is also entitled to compensation for the time and work involved with administering the estate.
If probate is necessary, BC probate fees are assessed as follows:
- No probate fee if the value of the estate does not exceed $25,000
- 0.6% on the value of estate assets between $25,000 and $50,000, and
- 1.4% on the value of estate assets exceeding $50,000.
(see the Probate Fee Act, [SBC 1999] CHAPTER 4, s. 2).
That works out to roughly $14,000 on each million dollars worth of estate assets. For a deceased person who died ordinarily resident in British Columbia, the fee is assessed on the value of real and tangible personal property of the deceased located in British Columbia as well as the value of intangible personal property of the deceased wherever situated (Probate Fee Act, s. 1). Intangible personal property includes bank accounts, stocks, life insurance, and other intangible assets.
When probate is required, Supreme Court charges a $200 filing fee for the probate application if the estate’s value is over $25,000. In addition to the filing fee, the court charges for court-certified copies of the estate grant and Statement of Assets and Liabilities ($40 for each court-certified copy).
How to Save on Lawyer’s Probate Fees
It may seem counterintuitive, but working with an experienced probate lawyer can be a way to save on fees. The lawyer’s hourly rate may be higher than a lawyer with less experience, but a more seasoned lawyer can streamline the probate process, anticipate problems before they arise, and draw on their expertise to resolve unexpected challenges.
As discussed above, legal fees will also depend on the scope of work. You can communicate with your lawyer at the outset to determine what steps you want help with and what steps you will undertake on your own. The personal representative can take on more of the administrative tasks, such as obtaining and organizing documents and preparing a detailed inventory of estate assets and debts.
An executor or administrator can also reduce fees involved with probate by being organized and keeping beneficiaries informed. Open communication with beneficiaries tends to reduce the odds of a dispute.
Looking for a Reliable Probate Lawyer in BC?
Quality legal advice is worth every penny. Our estate lawyers provide legal advice and guidance throughout the probate process, as well as effective strategies for resolving any issues or disputes that may arise. One of the experienced lawyers at Onyx Law Group can assist you with completing the probate application as efficiently as possible, regardless of the complexity or issues presented by the estate.
We believe it’s important to know your legal rights and obligations before making any decisions. Contact us today to discuss your matter with a passionate and knowledgeable lawyer who can advise you on the best steps forward. Onyx Law Group provides quality legal representation to beneficiaries, executors, administrators, trustees, guardians, and other family members.
For more information or to answer questions concerning a probate or estate administration matter, reach out to Veronica Manski, Probate and Estate Administration Practice Leader at 604-416-4403 (Vancouver) or 236-420-6400 (Kelowna) or vmanski@onyxlaw.ca.
We are proud to offer our legal services to the people of Vancouver, Burnaby, New Westminster, Surrey, Coquitlam, Kelowna, and all other surrounding areas.