Probate
A legal process through which a court confirms that
- your Will is valid
- the Will presented to the court is your "Last Will and Testament"
- that the executor has the authority to administer the estate and distribute the assets
Drawbacks Of Probate
- time
- can take months or years to
- identify all your assets (as the deceased)
- bank accounts, shares, real estate, etc
- list the assets in a prescribed manner
- file documents with the right government departments
- identify all your assets (as the deceased)
- executor cannot settle the estate until complete
- usually can't make disbursements in the interim, which may cause hardship for the beneficiaries
- can take months or years to
- cost
- like a death tax on the value of the assets in the estate of the deceased
- loss of privacy
- all documents become public record
Probate Fees
Probate fees vary by province. They are paid to a court, usually from the proceeds of your estate.
In Ontario, probate fees are
- $5 per $1,000 for the first $50,000, plus
- $15 per $1,000 on the balance
Bypassing Probate
- permitted for life insurance contracts, including segregated funds unless the named beneficiary is the estate of the deceased
- permitted for RRSPs and RRIFs if the beneficiary is the spouse (confirm)
Articles
- How does probate work? (Moneyville, May 2011)
page revision: 6, last edited: 17 Mar 2012 16:34