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Probating A Will:
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PROBATE
Probate is essentially the recognition by the court of the validity of the Will and the appointment of the person named in the Will as the Executor. Most financial institutions will insist on receiving a copy of probate. There is, however, some discretion to dispense with this requirement where the assets on deposit are less than $10,000.
PROBATE FEES
The probate fee is paid to the provincial government when an Executor or Administrator of an estate of a deceased person seeks to submit a Will to probate or obtain approval to administer an estate where there is no Will or no executor named in the Will.
CALCULATING PROBATE FEES
The probate fee is calculated as follows: the gross value of all of your world-wide personal property assets (such as cash, bonds, securities and the value of all real property (land) situated in the Province where you die, less the amount of any mortgage on real property.
INTER VIVOS TRUSTS
The inter vivos trust is a planning tool that is frequently used to avoid probate fees. A trust is a method of holding property where the legal and beneficial ownership of the property are separate in the sense that a trustee owns the legal title to the trust property, but the beneficiary enjoys all the benefits. When the ownership of assets is transferred to a living trust, they no longer form part of your estate since those assets are now legally owned by the trustees of the trust. Upon death, assets held in the trust will not be subject to probate fees. Meanwhile, the trust can be structured in such a way that you will continue to receive all the benefits from the property that you would otherwise receive if the trust property was owned by you directly.
JOINT ACCOUNTS WITH RIGHT OF SURVIVORSHIP
Probate fees are not applicable to assets held jointly. Property such as a home registered between Joint Tenants or a bank account that is jointly held will pass outside the estate of the deceased joint owner and vest in the surviving joint owner. |
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