When someone passes away, questions about estate distribution can quickly become overwhelming. Families, beneficiaries, and executors often want to know who gets an inheritance, how assets are divided, and whether those distributions can be contested. In BC, the Wills, Estates, and Succession Act (WESA) governs the legal rules behind estate divisions. While a will-maker can divide their estate according to their wishes, they must do so within the confines of the law. Understanding how estates are distributed and the potential issues that can arise helps families navigate this often-complex process.
How Is An Estate Divided With a Will?
When a person passes away and leaves behind a valid will, the executor named in the will (or an appointed administrator) is responsible for carrying out the instructions left by the deceased. In ideal circumstances, the will-maker was thorough and organized while creating their will, clearly outlining how they want assets shared among beneficiaries.
The executor has several responsibilities to carry out. They must manage the probate process to validate the will in court, gather and value assets, pay outstanding debts and taxes, and parcel out inheritances. Throughout, the executor is expected to communicate with beneficiaries, creditors, and other relevant parties and provide them with updates concerning the estate.
Despite careful will planning, challenges can arise. Some potential issues include:
- Ambiguities in the will: Unclear wording or conflicting instructions may cause confusion.
- Disinherited or excluded beneficiaries: Family members who feel they were unfairly left out may have grounds to contest the will.
- Validity concerns: Allegations of undue influence, lack of testamentary capacity, or improper execution can lead to disputes.
Even when a will exists, legal guidance may be required to ensure that the distribution of an estate to beneficiaries is carried out properly and disputes are resolved efficiently.
How Is an Estate Divided Without a Will?
If someone dies without a will, they are considered to have died intestate. In these cases, the court appoints an administrator through a grant of administration, and the estate is distributed according to WESA’s intestate succession rules.
The distribution depends on who survives the deceased:
- Surviving spouse only: If the deceased has no children, the surviving spouse inherits the entire estate.
- Surviving spouse and children: If there are children, either from the current marriage or previous relationships, the surviving spouse does not automatically receive the entire estate. Instead, the spouse receives a preferential share, which is $300,000 if all children are with the surviving spouse or $150,000 if some children are from other relationships. The remainder of the estate is then split between the spouse and the children; one half stays with the spouse, and the other is divided equally among all children, regardless of which relationship they are from.
- Children only: If there is no surviving spouse, the children inherit the entire estate equally.
- Other relatives: If there is no spouse or children, the estate passes, in order, to the parents of the deceased, siblings, and more distant relatives.
- No living relatives: If no eligible relatives exist, the estate escheats to the provincial government of British Columbia.
Assets that Pass Outside the Estate
When an estate is being divided, it’s important to understand that not all assets are included in the estate distribution. Certain types of property and financial accounts pass directly to named beneficiaries or co-owners, and therefore are not included as part of the estate. This can sometimes create confusion or even conflict among family members who may assume these assets will be subject to the same distribution rules as the rest of the estate.
Assets that typically pass outside of the estate include:
- Jointly owned property: Property owned jointly with rights of survivorship usually passes directly to the surviving co-owner.
- Life insurance policies with named beneficiaries: The proceeds of a life insurance policy go directly to the beneficiary named in the policy, regardless of the terms of a will.
- Registered accounts with designated beneficiaries (such as registered retirement savings plans and tax-free savings accounts): These accounts bypass the estate and transfer directly to the beneficiary upon death.
Contesting Estate Distribution
Even with a valid will, some family members may seek to contest the distribution of an estate. In British Columbia, WESA includes will variation provisions, which allow the court to vary a will if it does not make “adequate, just and equitable” provision for the deceased’s spouse or children.
- Some of the most common grounds for contesting a will involve claims with:
- Unequal treatment among children: one child inherits more than another.
- Disinheritance: a spouse or child is completely excluded from the will.
- Undue influence or incapacity: allegations that the will-maker was pressured or lacked the capacity to make decisions.
- Financial need: a dependent spouse or child is not adequately provided for.
Court Considerations During Will Contests
The court considers a variety of factors to determine how to resolve the claim fairly. In wills variation claims, the court may alter the distribution of a will if it does not make adequate, just, and equitable provision for the deceased’s spouse or children.
In these cases, judges examine the deceased’s reasons for their distribution choices, the financial circumstances of the spouse and children, and any cultural or family traditions that may influence expectations. They also balance the testator’s freedom to distribute their estate with the moral obligations owed to dependents who may have been under-provided for, ensuring the outcome is fair and equitable.
Other challenges can arise even when a will exists. Courts often handle disputes related to ambiguities in the will, where unclear language or conflicting instructions create uncertainty, or validity challenges, such as claims of undue influence, lack of testamentary capacity, or improper execution. In these situations, the court carefully examines evidence regarding the testator’s intentions, mental capacity, and the circumstances surrounding the creation of the will. Overall, the court seeks to respect the wishes of the deceased while ensuring that dependents and beneficiaries are treated fairly under BC law.
Working With an Estate Litigation Lawyer
Navigating estate disputes can be complex and emotionally challenging, whether you are a beneficiary, executor, or family member. Working with experienced estate litigation lawyers can help protect your rights, clarify your responsibilities, and resolve conflicts efficiently. At Stephens & Holman, our team provides compassionate, strategic guidance for contested wills, ambiguous or disputed distributions, and all aspects of estate litigation. Contact us to discuss your situation.