Managing financial and legal affairs 

As committee, you will have to make many decisions. Some will be to manage the day-to-day affairs of the adult for whom you are committee. Others will be important decisions that significantly impact the adult's life. Your decisions may also impact beneficiaries of the adult's estate.

Your primary obligation is to act in the best interest of the adult for whom you are committee. To do this, you must exercise judgment and use your discretion for the benefit of the adult.

Act reasonably and prudently

As committee, you are expected to act reasonably and prudently. Examples of acting reasonably and prudently are:

• Managing the adult's money with a cost-conscious approach
• Getting more than one quote for services or purchases. You should keep copies of the quotes in your records
• Using qualified experts to help you manage the adult's estate. Qualified experts can include property appraisers, accountants, and financial advisors

If you are the spouse

If you are committee for your spouse, you do not have to separate what belongs to each of you. You can continue to live as you have done. For example, you can maintain the same living and financial arrangements for your family home as long it makes financial sense.

The adult's home

As committee of estate, you may have to decide to sell or keep real property owned by the adult for whom you are committee. For example, the adult may move into a care facility, so you have to consider whether to maintain the adult's home, rent or sell it.

Consider the following before deciding to sell real property owned by the adult:

• The adult's wishes
• The views of family members
• If the adult is in a hospital/care home, is their care team’s opinion that they will likely move back home?
• Whether the home should be rented and the tax implications of renting the property
• If family members need the home to live in. Legitimate claimants are usually limited to the spouse and dependent children
• If the adult needs the cash from the sale to meet their expenses
• If the adult can afford the taxes and other costs of maintaining the home
• If the home is bequeathed to someone in the adult's will

If you decide to rent

If you decide to rent the home, you should rent it at fair market value. This means that you must charge a similar rent to other similar rental properties in the same neighbourhood. If you want to charge less than market value, you should discuss this with your committee review officer.

You should have a formal rental agreement with the tenant. You may have to provide the tenancy agreement with your account review.  You can find tenancy agreements for B.C. at the B.C. Residential Tenancy office.

If you decide to sell

Selling the adult’s home requires careful consideration and process. Before proceeding to sell, see Buying and selling real property as a private committee and consult your committee review officer.

Vehicles

Vehicles decrease in value quickly. Storage and insurance can be costly. If the adult for whom you are committee cannot drive, you should consider:

• Whether it's in the adult's best interest to sell or keep the vehicle
• If expenses for the vehicle are reasonable when it's being used for the adult's benefit, or their spouse or children

Personal effects and furnishings

Depending on the adult's financial and personal circumstances, you may need to sell or store personal items. If specific items are identified in a will you should discuss options with the adult and their family. If you sell an item gifted in the adult's will, you could be challenged by the beneficiary who is entitled to this asset. You should also consider whether the proceeds from selling the item are needed for the adult's ongoing expenses.

Jewellery, art and other items may have been listed at a specific value in your application for committeeship. If you choose to sell these, you need to establish the current market value. You should have any items valued at more than $2,000.00, appraised by a qualified appraiser before you sell them.

You are expected to keep personal effects that have sentimental value to the adult. Therefore, you should only consider selling these items if it is in the adult's best interest.

Joint bank accounts

If you had a joint account with the adult before your committeeship, you can continue to use the account. You must use the account in the way it has always been used. For example, if the account was used for estate planning purposes, continue to use it for estate planning purposes. If the account was used solely for the adult's benefit, continue to use it that way.

The adult may have a pre-existing joint account with another person. It is your responsibility to decide whether to maintain the joint account. For example, if the joint account holder is acting inappropriately, it is your responsibility to determine whether to keep this arrangement.

Creating a joint account to ease managing the adult's funds is against the rules set out in the Patients Property Act and common law. Joint accounts carry a right of survivorship. This means if you change the adult's account registration to include yourself, the entire account will go to you when the adult dies. This is a conflict of interest. As committee, you must not put yourself in a position to benefit from the adult's assets. It is inappropriate to change bank accounts to joint ownership with yourself and the adult for whom you are committee, if they were not already set up that way.

Make sure your financial institution understands your needs as committee. You can have the adult's account available to you as a signatory, but not as a joint owner. For more information, see Managing joint assets as a private committee.

Income

Deposit all the adult's income to an account in their name as soon as it is received. Regular sources of income, such as pension or disability income, can be direct-deposited into the adult's account. This will help you keep accurate records and to make sure no payments are lost.

Expenses

As committee, you will have to pay all reasonable expenses from the adult's account. These are varied and can include:

• Care home or hospital costs
• Medical Services Plan premiums
• Food
• Utilities
• Bus passes and transportation

To decide if an expense is reasonable, ask yourself if the expense is necessary and in the adult's best interest. Consider if the cost of an item or service is within the normal range. Your role is to manage the adult's estate to maintain or enhance the adult's quality of life. Your decisions must also reflect the adult’s wishes as much as possible.

You can reimburse yourself for reasonable out-of-pocket expenses you incur on the adult's behalf. For example, you can reimburse yourself for gas, car mileage, or record-keeping supplies.

If the adult lives in a care home

Care homes typically have a “comfort account”, a petty cash account they can draw on for personal items. Maintain this comfort account at a level that provides the adult with everything they need and can afford. The care facility managers can recommend an amount based on the adult's needs. You are responsible for monitoring this fund.

Caregiving services

When arranging caregiving services, you will consider many options. For example, you must consider the advantages and disadvantages of hiring an agency or an individual and assess the cost of these services and what the adult can afford. You might also decide to provide some caregiving duties yourself.

If you are setting fees for caregiving services you provide to the adult, you must provide the PGT with evidence of how you determined your fee and get authorization from your committee review officer. You must also keep clear records and documentation of the following:

• Hours of service
• Description of services provided

Pensions and benefits

You must apply on the adult's behalf for any pensions or other benefits they are entitled to. You can claim to be paid for arrears if the adult has not applied for benefits to that they were entitled. You can set up direct deposit for pension and benefit payments to simplify your record keeping and to make sure no payments are missed.

Income tax

You are responsible for filing income tax returns for the adult for whom you are committee. This includes filing overdue returns. You can let the Canada Revenue Agency know about the individual's incapacity. The adult may qualify for partial or full relief from penalties under the CRA's fairness and taxpayer relief program.

Your court order entitles you to ask for the adult's prior filings and T-slips. This can help you to make sure you have accounted for all of the adult's sources of income. You can hire a qualified professional to help prepare the adult's income tax returns. The cost of professional help is payable from the adult's account.

Sometimes, the adult for whom you are committee has no taxable income. It may still be in the adult's best interest to file an income tax return.
Filing returns allows you to:

• Claim refundable tax credits, such as the working income tax benefit and the B.C. sales tax credit
• Apply for federal and provincial tax credits
• Automatically renew the Guaranteed Income Supplement available to low-income seniors across Canada
• Qualify for reduced per diem rates at government-funded care facilities

Business affairs

Sometimes a business is part of the adult's estate. Business management is complicated. You may use your discretion and choose to sell the business. You may also decide to continue operating the business and hire qualified help for the things you aren't able to do. It's a good idea to hire a qualified business accountant to help with the business records, financial statements and tax preparation. You may also consider getting legal advice concerning the adult's role in the company, for example, if the adult is a company director.

If you decide to sell the business, consult a lawyer or accountant with experience in sales of similar business types.

Interest in a trust

If the adult whose affairs you manage has a trust, you need to find out the adult's interest in the trust. Many trusts are discretionary, concerning interest and capital. This means that the trustee decides when and how much funds the adult receives, and whether the funds are paid from interest or capital.
Get a copy of the trust deed so that you understand the nature of the trust concerning the adult. It is your responsibility to make sure the trustee does their job to handle the benefits to which the adult is entitled.

You will have to submit financial statements related to the adult's interest in the trust with your committee accounts. As committee, you are obligated to review the trustee accounts regularly to protect the interest of the adult for whom you are committee.

Discovering additional assets 

If at any time during your committeeship you discover additional assets worth more than $25,000.00, section 10 of the Patients Property Act requires you to report them to your committee review officer within 30 days of discovery. The PGT may ask for additional security for the newly discovered assets. This depends on:

• The value of the assets
• Whether your court order has placed restrictions on assets
• If there is a bond requirement in your court order

Legal affairs

As committee, you have the authority to bring and defend lawsuits on behalf of the adult for whom you are committee. This includes any action taken under acts such as the Wills, Estates and Succession Act (WESA) or the Family Law Act. Your authority also includes advancing any personal injury claims on behalf of the adult. For example, if the adult was being sued for financial support in a divorce case, you would continue with the lawsuit on the adult's behalf.

You must act in the adult’s best interest, so it's important not to get involved in unnecessary lawsuits.

Other legal roles could include the following:

• Acting as litigation guardian: If you act as litigation guardian on behalf of the adult, you must retain the services of a lawyer. A litigation guardian is someone who has the authority to instruct legal counsel throughout a litigation
• Acting as executor: If the adult has been named executor in someone's will, you can act as executor on the adult's behalf

You may find out that the adult for whom you are committee has been taken advantage of. For example, the adult may have sold something for less than its total value to someone who knew the adult was incapable. This transaction is not legal. If you are concerned that this has happened, get legal advice to find out what actions you can take that are in the adult’s best interest.

Helping dependant family members

As committee, you are acting as the adult would if they were capable. This means you should also consider the interests of the adult's legally dependant family members. Examples of legally dependant family members include:

• A spouse or common law partner 
• Children who are under 19; or over 19 but can't take care of themselves because of illness, disability, or another reason

If the adult has been supporting their spouse or another family member, you can continue to pay the costs of maintaining the dependant family member if:

• The adult's estate can afford the expense
• The dependant person has insufficient income to maintain their standard of living

Contact the PGT for approval before you begin to cover expenses for the adult's family members. This is especially important if the payments could be perceived as a conflict of interest. For transparency, you may also want to get a court order to approve such payments.

Maintenance for a spouse

If you are your spouse's committee, let the PGT know if you intend to continue to use your spouse's funds for your support. This statement should also be contained in your application to be committee. For more information, see Applying to be a private committee. You can have a budget approved so that you can pay for your expenses without the need for a detailed accounting.

Gifts to family members

If the adult has sufficient funds, the cost of small gifts that are part of the family traditions, such as birthday gifts, can be paid from the adult's estate.
You should consult your lawyer to arrange court approval before you give a substantial gift or charitable donation on the adult's behalf. If, when your accounts are reviewed, the level of gift is found to be unreasonable, you may have to reimburse the adult personally.

Conflict of interest

A conflict of interest is a situation in which your personal interests compete with the interest of the adult for whom you are committee.

As committee you have a fiduciary responsibility. This means that you must act in the best interest of the adult whose affairs you are managing. You must not benefit personally from the adult's estate.

Contact your committee review officer if you feel that an action you are taking may be perceived as a conflict of interest.

For example, if you are committee for your brother and contesting your mother's will, your claim on the estate conflicts with your brother's, in the eyes of the law. In a situation like this, you need to get approval from the PGT before you take action.

Conflict of interest can also arise if you take an action where you may benefit from a financial transaction that you take on the adult's behalf. For example, if you want to buy the home of the person for whom you are committee, you would need to get approval from the PGT before making the transaction.

Hiring professional help

You are responsible for the financial affairs of the adult for whom you are committee. Some aspects of managing these affairs may be outside of your expertise. In this case, you can hire qualified professionals and pay for their fees from the adult's assets.

For example, you can hire a qualified accountant to help you with bookkeeping, preparing accounts and to prepare the adult's tax returns. Or, you can hire a qualified investment manager to help manage the adult's investments.

When you hire professional services, you must make sure that the rates you are being charged are reasonable for the services you receive. If the PGT finds that the cost of services is not reasonable or the service is one that you could reasonably be expected to provide, you may have to pay back the adult for the cost.

Writing a will

The adult for whom you are committee may want to make a will. The level of capacity needed to write a will is called "testamentary capacity." This is different from the level of capacity needed under the Patients Property Act to declare someone incapable of managing their affairs. You can arrange for the adult to speak with a lawyer to determine if the adult has testamentary capacity. The lawyer may ask for a medical opinion. The desire to make a will must come from the adult, not the committee.

Marriage

If the adult wants to get married, the adult must be capable of entering into a marriage contract. If you are concerned about the adult's ability to understand a marriage agreement, get advice from the adult's doctor and lawyer. The doctor will assess whether the adult understands the meaning of a marriage agreement. The lawyer will give you legal advice. You must use your discretion to decide if you need to take these steps before the adult marries.

Managing investments

As a private committee of estate, you manage the financial affairs for an adult who is no longer capable to do so. You need to keep a reasonable amount of money in the adult's bank account to care for routine needs. If additional funds are available, you should consider developing an investment plan. Given the level of care that is needed to manage investments, you should seek advice from an investment professional.

Investment considerations

A reasonable and proper investment plan considers the following:

• Prior investment history and patterns of the adult
• Adult's circumstances, interest, and wishes
• Adult's current and future needs

The prudent investor 

In B.C., private committees of estate are considered trustees. Therefore, your investment decisions must meet the standard of care set out in the Trustee Act which is the prudent investor requirement. This means you must use a prudent investor’s care, skill, diligence and judgment.

As a prudent investor, you must:

• Take an approach that balances risk and returns
• Develop a written investment strategy and plan
• Make necessary investments to protect capital and provide income for the adult whose affairs you manage
• Develop risk and return objectives that are suitable and reasonable, based on the size of the portfolio and the circumstances of the adult
• Make sure that the investments are diversified in class and type
• Make sure that the costs and fees charged for investment purposes are reasonable and appropriate

Investment risks

There are many financial risks when making investment decisions. This is especially true when you are investing for someone else. As private committee of estate you can be held personally responsible for investment losses incurred by the adult's estate. However, the Trustee Act states that you cannot be held responsible for an investment loss if the decision that led to the loss is based on an investment plan of a prudent investor.

Therefore, you should make every effort to maintain the overall portfolio risk at a reasonable level when developing an investment plan for the adult for whom you are committee.

For example, you need to keep money in the adult's bank account to take care of the adult's day-to-day needs. Any amount over that should be invested. The investments you make should be in the best interest of the adult. This requires an investment strategy that limits ups and downs in market values to provide a steady income for the adult's financial needs. As a prudent investor, you only expose the adult's estate to the level of risk required to meet the adult's financial needs.

You can avoid undue risk by

• Developing your investment plan in writing
• Seeking qualified professional assistance
• Investing conservatively
• Diversifying when making investments
• Regularly monitoring the portfolio's investment performance

Choosing professional assistance

Managing investments as a private committee requires a high standard of care. Your legal obligation is to manage the adult's affairs as a prudent investor. You are not expected to have the financial expertise you need to achieve this. The Trustee Act allows you to delegate your authority to manage the adult's investments to an agent. You can do so once you have determined your investment objectives.

You must choose an agent carefully and you must:

• Establish the terms and limits of the authority you delegate
• Familiarize the agent with the investment objectives
• Regularly monitor the performance of the agent

When choosing an agent, make sure they are:

• Knowledgeable
• Reputable
• Dependable

You must also make sure they understand the legal requirements of trustees to act as prudent investors. The fees they charge must be reasonable and competitive. Some investment products have hidden management fees such as load or administration fees. Be sure to ask for an explanation of all fees and commissions.

Personal loans

Making a personal loan to yourself, family members, or others is not an appropriate investment and is a direct conflict of interest. If you wish to make a personal loan, the loan must be approved in advance: 

• As part of the initial court order, or
• By way of a court order specifically authorizing the loan

How to develop an investment plan

Your investment decisions are your choice. However, it's important to remember that you are acting on behalf of the adult for whom you are committee. The adult's wishes and past investment patterns should be taken into account. We strongly advise that you seek qualified professional advice to help you create an investment plan.

What follows is the steps to create an investment plan:

Make an investment plan

• Determine investment income: Based on the objectives and goals you identified, you now know the income you need to meet them
• Considerations: You need to consider many factors to make an investment plan that meets the adult's income needs and financial goals, including:
  • Current economic conditions
  • Current market conditions
  • Diversification of the investments
  • Liquidity of the investments, for example, how easily can the investments be converted into cash
  • Investment history of the adult
  • The investment strategy

As a prudent investor, we strongly recommend that you deposit funds only with banks, credit unions and financial institutions that are members of the Canada Deposit Insurance Corporation or the Credit Union Deposit Insurance Corporation. Deposits in member institutions are automatically insured against loss up to certain limits. The insurance limit for CDIC insured banks is $100,000.00. There is no limit for CUDIC-insured B.C. credit unions.

Investing in precious metals, art and antiques is not considered a prudent investment decision for most committees. Investments such as these are speculative. They may be difficult to sell in a timely manner.

An adult may already own gold, art or antiques and you don't have to sell these assets. As a prudent investor, you'll develop an investment strategy that balances the risk of managing these assets with the needs of the adult.

Conflict of interest

When appointed committee of estate by the court, you are placed in a position of trust to manage the affairs of someone who is not capable. You cannot benefit in any way from the funds that you manage for the adult. You are accountable for the decisions you make. You must act in the adult's best interest and make every effort to reduce the risk of investment losses to the adult's estate.

Your committee review officer will examine the investment plan and investments to make sure that you are fulfilling the prudent investor requirement.

If you invested funds in a way that does not appear prudent, you could be personally responsible for any losses incurred by the adult's estate. The PGT will not be able to pass your accounts if the investment decisions you make are found to be inappropriate. If the accounts are not passed, it can result in losing your committeeship and you risk legal action from the adult’s new committee or the executor/beneficiaries of the adult’s estate.

Resources

The B.C. Securities Commission has resources to help investors. You can contact the British Columbia Securities Commission by calling 1-800-373-6393, or email at inquiries@bcsc.bc.ca.

Advice services

Contact your committee review officer if you have questions about your role as committee. They cannot make decisions for you, but they can provide advice, answer questions or suggest resources to help inform your decisions.

Managing joint assets 

As committee of estate, you are required to manage the financial affairs of the adult for whom you are committee. Sometimes the adult owns assets jointly with others. Managing joint assets can be complicated. When this is the case, you must manage the joint assets in the best interest of the adult. You are generally not permitted to establish joint assets on behalf of the adult. Doing this may change the adult’s estate plan for how assets will be distributed after the adult dies.

Joint ownership defined

Joint ownership is when two or more people own an asset. Examples of assets that may be owned jointly include:

• A vehicle
• A bank account
• Real property

In B.C. there are two kinds of joint ownership:

1. Joint tenancy: The joint owners hold an equal interest in the asset. When one owner dies, the asset passes directly to the surviving owner once the appropriate paperwork is done. This is called the right of survivorship. In most cases, joint tenancy is arranged so that when a client’s spouse dies, the asset can quickly and easily pass directly to the surviving spouse
2. Tenancy in common: Each owner has a separate interest in the asset. This separate interest can be equal or unequal. When one owner dies, that owner's share forms part of their estate and does not pass automatically to the surviving owner or owners

Beneficial ownership and interest

Sometimes, the original owner of an asset names a joint owner for the asset so the joint owner can help take care of the asset. The original owner, does not intend for the joint owner to automatically benefit from the asset after they die. In this case, the original owner is the beneficial owner.

It's important to know what the original owner intended when they set up the joint ownership. For example, an adult may add their child as a joint owner of an asset so that the child can help administer it. The adult may not intend for the child to have any financial or other interest from the joint ownership. In this case, the child is a joint owner in name only. The adult is the beneficial owner. This means the adult is the true owner of 100% of the asset.

Managing assets in joint tenancy

When the adult for whom you are committee owns an asset in joint tenancy, you must consider the following:

• Why is the asset in joint tenancy
• How the asset was used and managed when the adult was capable
• Who contributed financially to the asset
• The perspective of the other joint owners

It is assumed that the adult established joint ownership while the adult was capable. If you feel that the ownership arrangement was made against their will, you may have to challenge the joint ownership. You can apply through the court to have the asset returned to the sole ownership of the adult. You should seek legal advice to help you decide if you should do this.

It's always important to remember that your role is to act in the best interest of the adult for whom you are committee.

Three common reasons for joint tenancy

1. Joint tenancy for ease of administration

   An adult may set up joint ownership to help the adult administer the asset. In this case, the adult may not intend for the asset to pass to the joint owner(s) when the adult dies. For example, an adult may name a child as a joint owner so that the child can manage day-to-day affairs, such as banking or property maintenance. In cases like these, the PGT considers the adult the beneficial owner of 100% of the asset.

   Now that you are committee, joint ownership isn't needed any longer. Sole asset ownership should return to the adult as soon as possible. You may need the other owner's consent or a court order to return the asset to the adult for whom you are committee. If this hasn't happened by the time your first committee accounts are due:

   • Disclose the title in its current state
   • Report 100% of the value and income of the asset as belonging to the adult
   • Include an explanation of when the joint owner's name will be removed

2. Shared ownership and use

   An adult may jointly own an asset where the owners are on title and contribute to and use the asset. If any joint owners die, their share is divided among the remaining owners. In this case, the PGT considers the adult's interest to be what is shown on the title of the asset. For example, if there are four joint owners, the adult has one quarter ownership.

   Management: As committee, you may choose to manage the asset as the adult did while the adult was capable. If this is no longer in the adult's best interest, you can discuss alternative options with the joint owner and your committee review officer.

   Reporting: When you submit your committee accounts to the PGT, report the value of the asset and its income in proportion to the adult's beneficial interest.

3. Estate planning

   Sometimes the adult wants to make a plan for their assets after they die. For example, after their death, the adult may want title of their home to transfer to a particular person. In this instance, the adult may add that person as a joint owner of their home. In this case, the adult's beneficial interest in the asset is 100%.

It's important to review the history of the asset to find out if it is appropriate to continue to manage the asset as it was set up. It's important to remember that estate plans cannot be changed except to provide for the adult's personal or financial needs. If the adult's circumstances change or joint ownership puts the asset at risk, discuss options with the joint owner(s) and your committee review officer.

Other considerations

Whether an asset is registered as joint tenancy or tenancy in common, your role is to manage the asset in the adult's best interest.

Communication and coordination with joint owners

You must work with joint owners to determine the following:

• How income will be divided and reported for tax purposes
• How expenses will be paid or divided between owners, such as property insurance and taxes for real property
• Future plans for the asset, for example selling the asset or managing it differently

Joint account usage

Unless you are the spouse, do not use the joint account for your personal use. 

Selling jointly-owned real property

When jointly-owned real property is sold, the proceeds may be retained as a jointly-owned asset. For more information, see Buying and selling real property as a private committee.

Selling or transferring an asset listed in the adult's will

A will is a legal document left by someone who died. It lets others know what to do with that person’s estate and who has the legal authority to do those things. If you sell an asset listed in the adult's will, keep all documentation showing the amount received.

If you transfer an asset listed in the adult's will, keep all documentation showing the fair market value. This will provide a clear record of how you determined market value. It will also allow the adult's executor to comply with section 48 of the Wills Estates and Succession Act (WESA) after the adult dies.

Fees payable and earned when submitting committee accounts to the PGT

When you submit your committee accounts to us, the fees payable and the fee you can request to be paid are calculated based on the PGT's assessment of the adult's beneficial interest in the joint asset(s).

Approval of change in ownership 

To have a change in ownership approved, you may have to apply to the court under section 28 of the Patients Property Act. The PGT must be served with notice of your application. Once we receive a copy of the application, we will review it and make comments for the court to consider.

Accessing restricted assets

Access to certain assets may be limited by restrictions in the court order that appointed you as committee of estate. Depending on the restrictions, you may need to get the approval of the Public Guardian and Trustee (PGT), or a court order to access these assets in any way.

Accessing an asset means selling, transferring ownership, or using it to borrow against (for example, a mortgage). For more information, see Buying and selling real property as a private committee.

Accessing restricted assets

You must demonstrate that accessing a restricted asset is in the best interest of the adult for whom you are committee.

The maximum amount of funds the PGT will approve is limited to the adult's current needs only. For example, if the request is to sell an asset to free up funds to pay for the adult’s daily life, the PGT may approve the sale, however it does not mean that all funds from the sale will be available, but rather only the funds required for the current need.

The PGT will not approve a request that:

• Is a large gift, or transfer of funds that appears to be an early distribution of the adult's estate
• Is not needed to meet the adult's financial or legal obligations, or their health and safety needs
• Puts you in a conflict of interest with the adult, such as a gift or loan to yourself or a related party
• Contradicts a term of the current court order that appoints the private committee
• Was denied in the past with no new information or change in circumstance
• Is for the purchase of real property for investment purposes
• Is a loan to someone else for investment purposes

The PGT may not approve:

• Moving an asset to a location or institution outside B.C. 

The PGT will consider approval of the following when it might be in the adult's best interest: 

• Cover a shortfall in the adult's income to meet their needs
• Fund an important, one-time expense for the adult, such as medical equipment
• Repay the adult's debts
• Transfer a restricted account to a new financial institution
• Buy real property for the adult's use
• Buy a non-financial asset to serve the needs of the adult
• Get a loan for the adult to meet daily expenses or a specific need

If the asset is a gift in the adult’s will

Special consideration must be made if you want to sell or transfer an asset that is listed in the adult's will. A will is a legal document left by someone who died. It lets others know what to do with that person’s estate and who has the legal authority to do those things.

All records about the sale or transfer of the asset must be kept. This makes sure that when the adult dies, the executor of the adult's estate will have the documentation needed to comply with section 48 of the Wills Estates and Succession Act (WESA). This documentation should show the following:

• Amount of proceeds and fair market value received if the asset is sold, or
• Fair market value of the asset if it is transferred

The request process

1. Send your request using the Private Committee Online Service. (see below for what to include in the request) If you are unable to submit online or run into any difficulties making your request, please contact us at PCSAdmin@trustee.bc.ca
2. Your committee review officer reviews the request within 10 business days and may follow up by phone or email with a request for more information
3. A decision is made
   1. If approved, a committee review officer will provide you with a letter confirming you have access to the asset(s)
   2. If declined, a committee review officer will communicate the decision to you. You have the option to apply for a court order to approve it under section 28 of the Patients Property Act. The PGT must be served with notice of your application

What to include in all requests to access restricted assets

1. An explanation of the reasons for your request and why it is in the adult's best interest
2. Details of the restricted asset you are requesting access to
3. The amount you are asking for
4. A statement showing the current balance in the adult's restricted account
5. Contact information for the financial institution holding the restricted asset

Advice services

Contact your committee review officer if you have questions about your role as committee. They cannot make decisions for you, but they can provide general advice, answer questions or suggest resources to help inform your decisions.

The private committee services department can also help you set up your online account and answer any questions about our online services.

Buying and selling real property

Real property is land and anything that is permanently attached to it. Real property can be residential, commercial, agricultural or industrial. An example of real property is a house, condominium, or farm.

Transactions on real property owned by the adult for whom you are committee require consideration. Depending on any court order restrictions on the property, there are different Public Guardian and Trustee (PGT) review processes to follow that are explained below.

Buying real property

The purchase of real property as an investment is not considered prudent. If you think the purchase of real property is in the adult’s best interest, prepare a proposal and send it to your committee review officer. Make sure the proposal explains why you think the purchase is in the adult's best interest.

A court application for approval may be needed if you want to purchase real property with restricted assets. For more information, see Accessing restricted assets as a private committee.

For more information about purchasing real property as an investment, see Managing investment as a private committee.

Selling real property

As committee of estate, you may have to decide to sell or keep real property owned by the adult for whom you are committee. For example, the adult may move into a care facility, so you have to consider whether to maintain the adult's home, rent or sell it.

Consider the following before deciding to sell real property owned by the adult:

• The adult's wishes
• The views of family members
• If the adult is in a hospital/care home, is their care team’s opinion that they will likely move back home?
• Whether the home should be rented and the tax implications of renting the property
• If family members need the home to live in. Legitimate claimants are usually limited to the spouse and dependent children
• If the adult needs the cash from the sale to meet their expenses
• If the adult can afford the taxes and other costs of maintaining the home
• If the home is being left to someone in the adult's will (see below)

How to submit a request for PGT approval

Send your request by email, fax or letter to the PGT, attention of Private Committee Services. The request must include:

• A copy of the Contract of Purchase and Sale that is subject to PGT approval
• An appraisal from an independent appraiser dated less than 6 months ago
• A brief explanation about why you are selling the property, highlighting why the sale is in the adult’s best interests
• Contact information for your realtor, lawyer or notary public

The PGT’s review

A committee review officer will review all of the information you send in and may ask for more information. A minimum of 5 working days is needed to review and respond, and failure to provide all of the necessary documents will delay completing the review process. 

The PGT may not approve the sale of real property when the offer under consideration is/has:

• For less than the appraised value
• To someone who is known to the committee or adult
• Made without a licensed realtor
• Complex legal or ownership issues
• Concerns the sale may not be in the adult’s best interests

If your request is not approved, you can apply for a court order to approve it under section 28 of the Patients Property Act. The PGT must be served with notice of your application. When we are served, we will either take no position, or we will oppose your application if there are concerns.

Security requirements

The PGT requires security to cover the net sale proceeds when restricted real property is sold. The court order appointing you committee may already contain such a restriction. For example, if the net sale proceeds are deposited into an investment account, the PGT will require restrictions on that account. PGT or court approval will be required for access to the restricted account.

If the net sale proceeds are restricted by court order

Before the PGT approves the sale, we will require you to confirm that the financial institution receiving the proceeds has been:

• Served with a copy of the court order, and
• Advised the proceeds are restricted

If the net sale proceeds are not restricted by court order

Before the PGT approves the sale, we will require you and the financial institution receiving the proceeds to sign an Irrevocable Letter of Direction. This letter confirms that your access to the new account will be restricted (a committee review officer will provide you with a template if you need one).

Title transfer

The PGT will send a letter addressed to the Land Title Survey Authority to the lawyer involved in the transaction, giving consent for the title to be transferred when the following are received:

• The Form A Transfer, and
• If applicable, the Irrevocable Letter of Direction, or
• Confirmation the financial institution receiving the sale proceeds has been served with your court order

Documentation about the sale, including the Vendor’s Statement of Adjustments, should be kept and included when you submit your accounts for review.

Advice services

Contact your committee review officer if you have questions about your role as committee. They cannot make decisions for you, but they can provide advice, answer questions or suggest resources to help inform your decisions.

How to assess legal bills

Once appointed as committee of estate, you have many duties and responsibilities. One of your first responsibilities is to pay the lawyer who helped you get appointed. You may also have to retain a lawyer to represent the adult for whom you are acting as committee.

If your application was contested 

A contested application is one where another party opposes or disputes it. If your application was contested, the adult’s estate might be required to pay the legal fees of the contesting parties. The court order appointing you as committee will state any requirements for legal fee payments.

Before you pay for your legal services

It's important to review your legal bills to make sure that the charges are reasonable and appropriate. You should also confirm whether the adult's estate is required to pay.

Guidelines to help you assess your legal fees

You most likely signed a written agreement when you first hired your lawyer. This agreement is called a retainer. Your retainer should define:

• The work to be done by your lawyer
• Services to be provided by other lawyers or legal assistants in the firm
• An estimated cost of legal fees, disbursements and applicable taxes

Before making any payment, review your lawyer’s bill to make sure that:

• The details of your bill correspond to what is in your retainer agreement, and
• The amounts charged are reasonable (your legal costs will be higher if your committeeship was contested)

Concerns about your legal bill

Discuss any concerns about the bill with your lawyer. If, after discussion, you are still not satisfied, you can have your legal bill reviewed before the Registrar of the Court. This process is called taxation. There may be additional legal costs associated with the taxation process, and the review must be reviewed within a time period specified in the Legal Professions Act.

To arrange for a taxation review of your legal bill, you must contact a court registry. A list of court registries is available at Courthouse locations. 
During the taxation hearing to assess your legal costs, the Registrar considers several issues. These issues can include the:

• Complexity of the issues involved
• Skill and specialized knowledge and responsibility required of the lawyer
• Lawyer’s character and standing in the profession
• Amount involved
• Time reasonably spent
• Importance of the matter to the adult for whom you are acting as committee
• Results obtained

The Registrar will also consider whether all disbursements were reasonably necessary.

If you need help finding a lawyer in your area, you can contact:

• Lawyer Referral Service at 604-687-3221 or 1-800-663-1919
• Dial-A-Law at 1-800-565-5297; they also provide useful recorded information

Advice services

Contact your committee review officer if you have questions about your role as committee. They cannot make decisions for you, but they can provide advice, answer questions or suggest resources to help inform your decisions. You can contact our department at 604-660-1500 or PCSAdmin@trustee.bc.ca