In the field of estate planning, there seems to be no word or phrase that strikes greater fear in a person’s heart than the spectre of “probate”. While it is certainly a known word, its true nature and implications remain a mystery for most people. Let’s remove some of that mystery:
What is probate?
- The process of proving to a court office that a Will is entitled to be relied upon
- The document issued from the court confirming the court’s finding
- The tax the government/court charges for the service
When is it needed?
- Third party demand – Likely a bank or other financial institution
- Real estate under a land titles system (under which title must be certified by the Master of Titles)
- Where public guardian is protecting the interests of minor beneficiaries
- Pending or actual litigation involving the estate
- Executor’s peace of mind
What does it cost?
- The top rates range from about 0.5% to about 1.5% depending on the province
- Alberta as a probate ‘haven’ — Maxing out at $400
- Quebec notarial Wills do not require probate
Who takes care of it?
- It is the executor’s responsibility
- Law office role is to assist with legal matters obviously
- Often the executor will engage (and compensate) lawyer to carry out the application, but the executor remains legally responsible to oversee the lawyer’s activities
How long does it take?
- Bringing the application to the court
- Time it takes the executor to gather assets and identify beneficiaries
- Processing time for the court to respond
- Depends on the backlog in the court office
- Few weeks to a few months