Probate is the legal process where will goes through provincial courts in order to get certified and validated. This process can be expensive but there are ways to avoid probate and minimize your estate tax bill. Typically, the process involves the executor who would apply for Letters of Probate and confirm that the will is the last will and testament of the deceased. Upon being granted letters of probate, property can be transferred onto the name of the executor of which they can begin the process of settling the estate to the beneficiaries.
The probate process involves fees based on the value of the estate and the fees vary from province to province. However, with proper planning, you can eliminate or lower the fees by limiting the value of the estate through tips below.
Avoid Probate by Following The Tips Below
- Naming Beneficiaries on Registered Investments such as RRSPs, TFSA, RRIFs, SRSP, LIF, LIRA
- By naming a beneficiary on your registered investment, you’ll be able to avoid probate fees as upon your death, the funds would be transferred to your spouse or a qualified beneficiary.
- Naming Beneficiaries on Insurance Policies and Segregated Fund Policies
- By naming a beneficiary on your life insurance policy, the death benefit would be paid directly to the beneficiary, thus by-passing the estate and probate.
- Registering Property in Joint Ownership
- Property registered in joint would pass to the spouse upon the other’s death. This could include real estate, bank accounts, joint ventures, etc.
- Excluding assets into the estate by using trusts
- One can avoid probate by transferring property into a living trust, also known as an inter-vivos trust. The property transferred into the trust belongs to the trust for the benefit of the beneficiaries. Once the trustee passes away, the successor trustee would be able to manage the assets.
- Gifting property, assets and investments
- You can gift assets or property so it belongs to someone else. Doing so will exclude the asset from your estate and not be subject to probate.
- Estate Freeze
- One may freeze the value of their estate by limiting the growth of capital assets such as real estate, securities, corporate interests etc. Doing so, you would be transferring any future growth of the assets to another party, usually your family members.
Probate Fees by Province
| Province | Value of Estate | Probate Fees |
| Alberta | Under $10,000 | $35 |
| $10,000 to $25,000 | $135 | |
| $25,000 to $125,000 | $275 | |
| $125,000 to $250,000 | $400 | |
| Over $250,000 | $525 | |
| British Columbia | $25,000 to $50,000 | $6 per $1,000 (0.6%) |
| Over $50,000 | $14 per $1,000 (1.4%) | |
| Manitoba | Under $10,000 | $70 |
| Over $10,000 | $7 per $1,000 (0.7%) | |
| New Brunswick | Under $5,000 | $25 |
| $5,000 to $10,000 | $50 | |
| $10,000 to $15,000 | $75 | |
| $15,000 to $20,000 | $100 | |
| Over $20,000 | $5 per $1,000 (0.5%) | |
| Newfoundland & Labrador | Under $1,000 | $60 |
| Over $1,000 | $0.60 per $100 (0.6%) | |
| Northwest Territories | Under $10,000 | $30 |
| $10,000 to $25,000 | $110 | |
| $25,000 to $125,000 | $215 | |
| $125,000 to $250,000 | $325 | |
| Over $250,000 | $435 | |
| Nova Scotia | Under $10,000 | $85.60 |
| $10,000 to $25,000 | $215.20 | |
| $25,000 to $50,000 | $358.15 | |
| $50,000 to $100,000 | $1,002.65 | |
| Over $100,000 | $16.95 per $1,000 (1.695%) | |
| Nunavut | Under $10,000 | $25 |
| $10,000 to $25,000 | $100 | |
| $25,000 to $125,000 | $200 | |
| $125,000 to $250,000 | $300 | |
| Over $250,000 | $400 | |
| Ontario | Under $50,000 | None |
| Over $50,000 | $15 per $1,000 (1.5%) | |
| Prince Edward Island | Under $10,000 | $50 |
| $10,000 to $25,000 | $100 | |
| $25,000 to $50,000 | $200 | |
| $50,000 to $100,000 | $400 | |
| Over $100,000 | $4 per $1,000 (0.4%) | |
| Quebec | Fixed Fee | $202 |
| Saskatchewan | Fixed | $7 per $1,000 (0.7%) |
| Yukon | Over $25,000 | $140 |
Example of Probate Fees
Jim, who lived in Saskatchewan, passed away on January 4th. He left no will. His wife Susan filed for grant of probate and received a certificate of appointment. It was determined that the value of his estate was $200,000. The probate fees amounted to $1,400. (0.007 x 200,000).
