RICK THE REALTOR®

What is a Power of Attorney?

A Power of Attorney can manage your affairs while you are alive. There are different types of powers of attorney.

A General Power of Attorney ends automatically if you become mentally incapable or die. An Enduring Power of Attorney continues — or endures — if you become mentally incapable.

Most people choose a family member or friend to be their attorney. You could also ask a professional, such as your lawyer or accountant or a trust company to be your attorney. The most important thing is to choose someone you trust.

 What Is An Estate? The money and property owned by a particular person at death. 

What Is A Will? A legal document that communicates a persons final wishes.

What is an Executor? Wills usually name an Executor who is responsible for carrying out the instructions in the will. The Executor can be one person or several people.

When someone passes away, often a family member or close friend is named the Executor and is responsible for settling the Estate. This often includes selling the deceased parent’s or friend’s real estate holdings (house, condominium or townhome)

 Being named as the Executor for a loved one who has died can be particularly difficult. While being an Executor is a great honor, it can also be a heavy burden. In addition to dealing with the complexities of settling the Estate and selling the loved one’s home, you are often in the midst of the grieving process. An Executor must navigate probate, take inventory of the estate, settle debts, distribute assets, and deal with lawyers and accountants, often without any prior experience or guidance.

If the Executor named in the Will declines to act as Executor, or there is no Will, the Court appoints someone to act as an Administrator.

What assets are not subject to probate in BC? Usually jointly-held assets and beneficiary-designated assets are excluded from probate. Generally, assets that are in a deceased person's name without a beneficiary designated are subject to probate. 

Can you sell a property before probate is granted in BC? Title to the residence needs to be first transferred to the executor before it can be sold. This is called a transmission. The Grant of Probate and the transmission are submitted to Land Titles to put the title in the name of the Executor. 

Question: Since one cannot transfer the home’s title to a new owner until probate is granted is it better to wait until you have been granted probate before listing the house for sale?

Answer: It depends.  In a seller’s market, it may be in the Estate’s best interest to list the home for sale before having received Probate. Even if the Estate is straightforward, the probate courts can be delayed and receiving a grant of probate can take months.  In that time, the real estate market could shift and the home value could be lower after probate is granted. You may also delay listing the property so there is not an extended period of time before completion – approximately 90 days is ideal.