What Is Probate? Probate (officially called a Grant of Representation in BC) is court approval that confirms:

• The will is valid, and
• The executor has authority to manage and sell estate assets.

If there is no will, the court appoints an administrator.

When Is Probate Required?

Probate is usually required if:

• The property was owned solely in the deceased’s name.
• There is no joint owner with right of survivorship.
• The land title office requires proof of authority before transfer.

If the home was owned jointly with a spouse, probate may not be required for the property transfer.

Example:

Lisa owned her Vancouver home alone. Her will names her daughter as executor. Before the home can be listed and sold, the daughter must apply to the BC Supreme Court for probate.

If Lisa had owned the home jointly with her husband, the title would typically pass directly to him without probate.

BC charges probate fees based on the total value of the estate.

• No fee on the first $25,000
• Approximately 1.4% on assets over $50,000

Example:

If the estate includes a home worth $1,800,000 and $200,000 in other assets:

Total estate value = $2,000,000 Probate fee = roughly $28,000

This is paid before distribution to beneficiaries.

Canada does not have inheritance tax — but death can trigger capital gains tax.

The “Deemed Disposition” Rule

When someone dies, CRA treats their property as if it was sold at fair market value immediately before death.

If It Was Their Principal Residence

If the home was their principal residence, capital gains tax is usually eliminated up to the date of death using the principal residence exemption.

Example:

John bought his home in 1995 for $400,000. At his death in 2025, it is worth $1,600,000.

Normally, that $1.2 million increase would be taxable — but because it was his principal residence, no capital gains tax is owed up to the date of death.

After death, the estate becomes its own taxpayer.

If the home increases in value between the date of death and the sale date, the estate may owe tax on that increase.

Example:

Date of death value: $1,600,000 Sale price 8 months later: $1,700,000

Capital gain inside the estate: $100,000

50% of that gain ($50,000) is taxable at trust tax rates unless distributed strategically.

This is why a professional appraisal at the date of death is very important.

The City of Vancouver charges an Empty Homes Tax if a property is vacant for more than six months of the year.

The rate has been approximately 3% of assessed value.

Example:

Assessed value: $2,000,000 Potential tax if vacant: $60,000 per year

Is There an Exemption for Estates?

Yes:

• The year of death is exempt.
• Typically, the following year is also exempt.

However:

• You must still file an annual declaration.
• If the property remains vacant beyond the exemption period, the tax will apply.

Executors often assume estates are automatically exempt — they are not unless properly declared.

In addition to Vancouver’s tax, BC has a provincial Speculation and Vacancy Tax.

This will apply separately and has the same exemptions as the EHT.

The estate must complete declarations for both programs if the property is located in Vancouver.

The Public Guardian and Trustee of BC may step in if:

• There is no will and no one eligible to act.
• The named executor refuses or cannot act.
• There are no known heirs.
• Minor or vulnerable beneficiaries need protection.

If appointed, the PGT:

• Secures the home
• Sells the property
• Files taxes
• Distributes proceeds

This usually happens only when no suitable private executor is available.

As executor, you have a fiduciary duty to act in the best interests of beneficiaries.

Key responsibilities include:

✔ Secure and insure the property 

✔ Obtain a professional appraisal at date of death 

✔ Apply for probate if required 

✔ Maintain the property while it is listed 

✔ File the deceased’s final tax return 

✔ File estate (T3) tax returns if necessary 

✔ Complete vacancy tax declarations 

✔ Keep detailed financial records

Executors can be personally liable for mistakes, particularly unpaid taxes.

Here is how a typical Vancouver estate sale timeline might look:

Month 1–3

• Obtain appraisal
• Gather documents
• Apply for probate

Month 4–8

• Probate granted
• List property 
• Maintain insurance and vacancy declarations

Month 9–12

• Sale completes
• File tax returns
• Distribute proceeds

Each estate is different, but delays are common — especially in probate processing.

Marketing of the property can begin before probate is granted, but completion cannot occur until probate is in place. The property can be listed and sold anytime ‘subject to probate being granted’. 

The executor is charged with obtaining the best price and terms for a property that is part of the estate. To avoid empty home and vacancy taxes, the property will need to be sold before the end of the year after the home ore died. Timing the market is always challenging in Vancouver. The home may sell for more than it was valued at the time of death triggering a capital gain. Waiting to list and sell the home may mean missing an opportunity in an active market, while waiting for market conditions to improve may not have the desired result. 

Because Vancouver property values are high, small mistakes can become expensive quickly. 

The sooner you talk to a real estate professional the better. Call me anytime for advice or assistance with this or any other real estate matter.