Probate Fees in Alberta: What to Expect

When a loved one passes away, the estate must go through a legal process called probate. This is the court procedure that validates the deceased person’s will and gives the executor the authority to distribute their estate according to the will. While probate is a necessary step, many people are unaware of the costs involved, which can be substantial.

In this article, we’ll explain what probate fees are, how they’re calculated in Alberta, and how you can manage these costs effectively. Understanding probate fees ahead of time can help you plan and make informed decisions when managing an estate.

What are Probate Fees?

Probate fees are the court fees paid to have the will of the deceased person validated by the Court of King’s Bench in Alberta. These fees cover the costs of processing the estate through the probate system, including the time it takes for the court to review the will, verify its validity, and grant the executor the legal authority to administer the estate.

While probate fees in Alberta are generally lower than in some other provinces, they can still add up, especially for larger estates. Additionally, the probate process can be lengthy, sometimes taking months to complete, depending on the complexity of the estate.

How Are Probate Fees Calculated in Alberta?

In Alberta, probate fees are based on the value of the estate that is subject to probate. This value includes all assets owned solely by the deceased person, such as real estate, bank accounts, investments, and personal property. However, certain assets may not be subject to probate fees, including assets that are jointly owned or those with named beneficiaries (e.g., life insurance policies, RRSPs, or joint bank accounts).

Probate Fees Calculation in Alberta:

• Estate Value $10,000 or less: $35
• Estate Value Over $10,000 but not more than $25,000: $135
• Estate Value Over $25,000 but not more than $125,000: $275
• Estate Value Over $125,000 but not more than $250,000: $400
• Estate Value Over $250,000: $525

What is Excluded from Probate Fees?

Not all assets in an estate are subject to probate fees. The following are typically excluded:

1. Jointly Owned Assets: Assets that are jointly owned with another person, such as joint bank accounts or property, pass directly to the surviving joint owner and are not included in the probate calculation.
2. Assets with Designated Beneficiaries: Assets like life insurance policies, RRSPs, and pension plans with designated beneficiaries are not subject to probate fees because they pass directly to the beneficiaries named in the policy or account.
3. Assets Held in Trust: If assets are held in a trust, they generally do not go through the probate process, as they are already managed by the trustee for the benefit of the beneficiaries.

Why it matters: Understanding which assets are subject to probate fees can help you estimate the cost of probate and potentially find ways to reduce those costs.

How to Reduce Probate Fees

While probate fees in Alberta are relatively low compared to other provinces, there are still ways to reduce them, particularly for large estates. Here are some strategies to consider:

1. Use Joint Ownership

• As mentioned, jointly owned assets pass directly to the surviving owner and are not subject to probate fees. If appropriate, consider holding assets like real estate or bank accounts jointly with a spouse, child, or other family member. This can help reduce the value of the estate that must go through probate.

2. Name Beneficiaries

• For assets like life insurance, RRSPs, and TFSAs, make sure to designate beneficiaries directly on these accounts. These assets will pass outside of probate, which can reduce the estate’s total value and therefore the probate fees.

3. Gift Assets Before You Pass

• Gifting assets to your beneficiaries while you are still alive can reduce the value of your estate and potentially reduce probate fees. However, keep in mind that gifting assets could have tax implications, so it’s important to consult a professional before pursuing this strategy.

For more information on how to reduce probate costs and plan effectively for your estate, consider reading our related article on Estate Planning Mistakes to Avoid in Alberta.

How Long Does Probate Take in Alberta?

The probate process in Alberta can take several months, depending on the complexity of the estate. In general, it involves the following steps:

1. Filing the Application: The executor files the application for probate with the Court of King’s Bench, which includes submitting the will and an inventory of the deceased person’s assets.
2. Court Review: The court reviews the application and confirms the validity of the will. If there are no issues, the court issues a grant of probate.
3. Asset Distribution: Once probate is granted, the executor can begin distributing assets to the beneficiaries. This can take time, especially if there are complex assets, such as businesses or real estate.

Why it matters: The probate process can be lengthy, and the time it takes to complete depends on the estate’s complexity. If you’re an executor, working with an experienced wills and estates lawyer can help expedite the process and ensure everything is handled correctly.

Final Thoughts

Probate fees are an important consideration when planning an estate in Alberta. While they are generally modest, understanding how probate fees are calculated and taking steps to reduce them can help preserve more of your estate for your beneficiaries.

At Libra Law, we specialize in helping individuals navigate the probate process and minimize costs where possible. Book a wills & estates consult today to discuss your estate planning needs and ensure that your wishes are carried out efficiently.

Disclaimer:

This article is for general informational purposes only and does not constitute legal advice. For personalized advice regarding probate fees and estate planning in Alberta, please consult a lawyer or qualified professional.