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
  • executor cannot settle the estate until complete
    • usually can't make disbursements in the interim, which may cause hardship for the beneficiaries
• 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)