When it comes to estate planning in British Columbia, there is a common and dangerous misconception that your assets will naturally and seamlessly flow to your "next of kin" in the event of your passing. In reality, dying without a Will means you have essentially forfeited your right to decide who inherits your property, who cares for your minor children, and who manages your final affairs. Instead of a plan tailored to your family's unique dynamics, the provincial government provides a "one-size-fits-all" legal framework that may not align with your true intentions. This post explores the significant legal and financial consequences of leaving your legacy to chance under current BC legislation, illustrating why a proactive approach is the only way to truly protect those you love most.

WHAT IS INTESTACY?
In legal terms, dying "intestate" refers to passing away without leaving a valid Will, or leaving a Will that only accounts for a portion of your assets (known as a partial intestacy). In British Columbia, these situations are governed by the Wills, Estates and Succession Act (WESA), which serves as the definitive rulebook for distributing the estates of those who haven't left their own instructions. Since its implementation in 2014, WESA has modernized how the province defines family and inheritance, yet it remains a rigid system. Without a Will to name an Executor or specify beneficiaries, your estate enters a mandatory legal process where the court must appoint an administrator, and your assets are distributed according to a strict statutory formula that ignores personal relationships or verbal promises.  Here is a breakdown of how the BC government distributes an intestate estate:

1. The Spousal Priority - In BC, a "spouse" includes both legally married partners and common-law partners who have lived in a marriage-like relationship for at least two years.

• If you have a spouse but no children: Your spouse inherits 100% of your estate.
• If you have a spouse and children (All shared):
  • The spouse receives the first $300,000 (the "preferential share") and all household furnishings.
  • The remaining balance is split: 50% to the spouse and 50% divided equally among the children.
• If you have a spouse and children (Blended family):
  • If any of the children are from a previous relationship, the spouse’s preferential share is reduced to $150,000.
  • The remainder is still split 50/50 between the spouse and the children.

2. The "Parentelic" System (No Spouse or Children) - If you pass away without a spouse or any descendants (children, grandchildren, etc.), WESA look "up" and "out" your family tree in a specific order:

1. Parents: Distributed equally to both parents (or all to one, if only one is living).
2. Siblings: If parents have passed, the estate goes to your siblings (and the children of any deceased siblings).
3. Grandparents: If no siblings or their descendants exist, the estate moves to your grandparents.
4. Aunts/Uncles: Finally, to your grandparents' descendants (your aunts, uncles, and cousins).

Note: BC law stops searching for heirs after the fourth degree of relationship. If no relatives are found within that scope, the estate "escheats" to the provincial government.

If you would like more information, feel free to give us a call or contact us for an appointment.

On February 17, 2026, the BC Government introduced the provincial budget, which includes a subtle but powerful change to the Property Transfer Tax Act (PTTA). The province is moving to extend the limitation period for prosecuting offences from one year to six years.
While this might sound like technical "legalese," it has significant implications for anyone involved in BC real estate transactions.

What Is Changing?
Currently, the government has a very tight window—just one year—to prosecute certain offences under the PTTA, such as knowingly making false statements or misrepresenting facts on a tax return.
The 2026 Budget proposes to stretch that window to six years. This change will take effect once the implementing legislation receives Royal Assent.

Why the Change Matters
This update isn't just about adding time; it’s about consistency and enforcement. By moving to a six-year window, the province is aligning its prosecution powers with two key benchmarks:

1. The Audit Window: The Ministry of Finance already has six years to audit and reassess PTT filings. Previously, they might find an error in year three of an audit but be unable to prosecute the offence because the one-year clock had already run out. This change closes that loophole.
2. Provincial Standards: This brings the PTTA in line with the broader enforcement timelines used in other BC tax regimes, creating a unified front against tax non-compliance.

The Bottom Line
The Province is signaling that it is getting serious about transparency in real estate. By extending this period, they are ensuring that:

• Compliance is non-negotiable: There is no longer a "short clock" to hide behind for inaccurate disclosures.
• Accurate Data is Essential: Whether it is residency status or the "fair market value" of a home, the stakes for providing correct information have never been higher.

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This change serves as a reminder that PTT filings aren't just paperwork—they are legal declarations that the government now has over half a decade to scrutinize.  It is more important than ever to maintain meticulous records of their property transactions for the long term.

Check out the official link for more details.

Buying your first home can feel overwhelming, especially with rising real estate prices in BC. The First Home Savings Account (FHSA) is a new tool designed to help first-time homebuyers save more efficiently while enjoying tax benefits.

What is the FHSA?
The FHSA is a registered account that combines the benefits of an RRSP and a TFSA. Canadians can contribute up to $8,000 per year (with a lifetime limit of $40,000) toward their first home. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free.

Who Can Open an FHSA?

• Must be a Canadian resident
• 18 years or older
• First-time homebuyer, meaning you haven’t owned a home in the past four years

Qualifying Withdrawals
To use your FHSA funds tax-free, withdrawals must meet certain criteria:

1. First home purchase: The money must be used to buy or build your first home.
2. Written agreement to buy or build: You must have a purchase or construction agreement.
3. Timing: Funds must be withdrawn in the same calendar year as the home purchase or within a short period around the purchase date.
4. Lifetime limit: You cannot withdraw more than your available FHSA balance.

Non-qualifying withdrawals are taxable, so it’s important to plan carefully.

Why the FHSA is Useful

• Tax Savings: Contributions reduce your taxable income, and qualifying withdrawals are tax-free.
• Flexibility: Unused contribution room carries forward, and FHSA funds can even be transferred to an RRSP or RRIF if unused.
• Combine with Other Programs: Can be used alongside the Home Buyers’ Plan (HBP) for additional savings strategies.

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Check out the official link from the Government of Canada or speak to your bank for more details.

It’s official! The GST Rebate for First-Time Home Buyers has received Royal Assent, and the CRA is now processing claims that could save you up to $50,000! Canada’s new government has eliminated the GST on new homes up to $1 million and reduced it for homes up to $1.5 million for agreements signed between March 20, 2025, and 2031. To get your rebate as fast as possible, simply log into your MyCRA account to apply online; while we are happy to assist with the paperwork, please note that manual applications will take slightly longer to process. 

Check out our link here and the official site from Government of Canada for more information about this program, including how to apply for the rebate.

While a drop in BC Assessment values might seem like an automatic tax relief for homeowners, the reality is more nuanced. For the 2026 property tax year, many homes in the Lower Mainland saw assessed values decline by up to 10% due to a softening real estate market.

However, municipal governments still set property tax rates based on the total revenue needed to fund local services. This often results in a “revenue-neutral” adjustment, meaning your taxes may not decrease proportionally with your assessment.

Why Your Property Taxes Might Still Rise

It’s important to understand that an increase or decrease in your property’s assessed value does not automatically determine your tax bill. Taxes are calculated relative to the average change in property values across your municipality.

For example:  If your home’s value fell by only 2%, but your neighbors’ properties fell by an average of 8%, your share of the municipal tax pool has effectively increased.  In this scenario, even with a lower assessment, you could see a higher property tax bill because your property now represents a larger relative portion of the community’s total taxable value.

Home Owner Grant Threshold Adjustments

The provincial government has adjusted the Home Owner Grant (HOG) eligibility to reflect these market changes. For 2026, the maximum property value for the full HOG was lowered from $2.175 million to $2.075 million.  This $100,000 reduction ensures the grant continues to target the same proportion of homeowners as in previous years. However, homeowners whose properties declined less than the provincial average may see a partial or full loss of the grant.

The adjustment highlights the importance of checking your eligibility early to avoid surprises on your property tax bill. Click here for more details.

British Columbia’s Property Tax Deferment Program allows eligible homeowners—such as seniors, persons with disabilities, and some families with children—to postpone paying their annual property taxes. Instead, the provincial government pays the taxes on the homeowner’s behalf and registers the amount as a loan against the property, which is typically repaid when the home is sold or transferred. Interest is charged on the deferred amount starting from the tax due date (or the application date, whichever is later), along with certain administrative fees. Historically, interest has been calculated using simple interest (not compounded) at a rate up to 2% below the bank’s prime rate, making the program a relatively inexpensive financing option.

What Is Changing in 2026?

Beginning with 2026 property taxes, the province will change how interest is calculated on newly deferred taxes:

• Deferred taxes will accrue compound interest at Prime + 2%
• Existing balances from 2025 and earlier will not be affected
• The new rate will apply only to taxes deferred in 2026 or later

This change means the program will no longer offer the same below-prime borrowing cost that homeowners previously enjoyed.
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Refer to the official Government of British Columbia page:  Property Tax Deferment Interest and Fees.

The Bank of Canada has lowered its key interest rate by 25 basis points to 4.25%, marking its third consecutive cut since June in response to easing inflation. While the bank is prepared to take larger steps if needed, the current pace of cuts is deemed appropriate given the gradual decline in inflation. Despite the cuts, some economists argue that more significant reductions are necessary to boost the economy, which is seeing rising unemployment, particularly among youth and newcomers. The effects of the rate cuts will be felt primarily by those with variable-rate mortgages, but broader economic benefits may take time to materialize.  Click here to read more.

Source: CBC

The Government of British Columbia has announced changes to the Property Transfer Tax (PTT) to improve housing affordability. The changes, effective April 1, 2024, include raising the exemption threshold for first-time homebuyers from $500,000 to $835,000 and increasing the exemption for newly built homes to $1.1 million.  Click here to read more.

Source: www2.gov.bc.ca

The new B.C. housing law, aimed at increasing housing units on single-family lots, does not override existing restrictive covenants on land titles that limit multi-unit construction. Many properties have old covenants without expiry dates, and homeowners affected are encouraged to seek legal advice.  Click here to read more.

Source: Vancouver Sun

One of the most common questions I've been asked most about Power of Attorney (POA) is, what if I don't have a POA and I become incapable of making decisions for myself?  My answer is - you're going to create a lot of trouble for your family or whoever needs to help you to manage your affairs.

When an adult needs help managing their affairs because of mental incapability due to an illness, accident, disability or diseases associated with aging, their judgment may be impaired in some way. They may forget to pay bills or put money away and forget where it is. The adult may also be confused about banking, investments, property, and personal belongings. However, they may have planned ahead and authorized someone else to make decisions and managing their financial and legal affairs through an enduring power of attorney.

But what if the adult does not have a POA?