Managing your children’s inheritance
Did you know our Province has a system of Laws and processes that ensure children remain in poverty when their parents die? Probate law in this country and Province allows the Province to charge HUGE fees to estates. And I do mean huge 3-7%, repeatedly.
If you die without a Will the Provincial Guardian and Trust (PGT) forcibly takes over any estate that, by default, goes to a minor child regardless of whether or not the child has a living Guardian. The majority of people without a Will are the poor and middle class.
Let’s say a parent dies and they have a small pension payout through their work that the child inherits. The PGT will take $150-500 from that payout every time they send you a letter. They will also charge a one-time 3-5% fee to act as administrator/executor and then ANOTHER 3-5% fee to act as trustee.
On the standard ICBC death payout of $30,000 the PGT takes a flat fee of $1125 plus $210/year plus GST. That’s a minimum. As mentioned above if they act as executor and Trustee they will take an additional $2250. From a CHILD who has lost a parent. Of the $30,000 that child might see $25,000. That’s a car where I come from folks. The government takes the financial equivalent of a car from a CHILD who has lost their parent in a car accident.
Not only that, should the remaining parent want to use or withdraw that money for their child’s benefit the PGT will charge an application fee of $200-3000 depending on the amount requested. EVERY SINGLE REQUEST.
If they deny the parent they still charge the fee.
If you reapply they charge the fee.
Further to this the PGT will not allow anyone to be an executor/administrator without obtaining a bond for the amount of the estate. This creates a financial barrier that keeps the PGT in control and denies access to low-income family members who may try to help and support the child.
Typically, the POOR (low-income), have very few assets and can not obtain the bond or they cannot pay for it thus their application is denied and still charged the application fee.
Maybe I am being biased and missing something but this seems like a HUGE inequality built into our society. This feels yucky. This feels wrong. It feels criminal. And every single day parents die and the children who have inherited their parents estates are slowly stolen from bit by bit until they turn 19 and the PGT cuts them a cheque for whatever happens to be left.
Writing a legal a Will (which theoretically prevents the PGT from getting their hands on it) is another financial barrier. A proper will easily costs $500+.
The transfer of wealth from one generation to the next is one of the mechanisms HOW the rich get richer. They know this law well and create trusts to protect their money and property from it.
This is how our BC government works people.
This is how they take care of children .
This is probate law.
This is wrong.