Do I Need to Probate my Estate?

/ Highlander Law Group/

Your loved one has passed away and you now have to figure out how to handle their affairs. When a person has died, all of the assets that belong to them at the time of death is called their “estate”.

In some cases, if there is a Will, the executor can simply read through the Will and distribute the contents of the estate as outlined in the Will. In some cases, even if there is no Will, a friend or family member can organize and distribute the estate to the next of kin.

What is probate?

However, in many cases, the estate must be “Probated”. Probate is the formal process of handling a person’s estate through the court system. The court’s job is to ensure the executor handles the estate appropriately.

 

When is probate required?

An executor can always choose to probate an estate, however there is a cost associated with it and rigid timelines that could delay the distribution of the assets of the estate. Most people choose to avoid probate if possible.

What triggers Probate?

Real property: if a person dies owning real property (land) either in their name along or as tenant in common, the registry of deeds will require the estate to be probated before the title of the land can be switched into someone else’s name. Note, if the land is held Jointly, as is common with spouses, that land will pass directly to the other owner and will not pass into the deceased’s estate (and therefore will not trigger Probate)

Stocks/bonds: if the deceased person held unregistered stocks and or bonds you will be required to probate the estate prior to doing anything with the stocks/bonds.

Vehicles/Boats/Recreational Vehicles: any vehicle that is registered with the department of motor vehicles will force an estate to be probated. The department of motor vehicles will not allow the title of the vehicle to be changed without proof of probate.

Bank accounts: depending on the amount of money in a bank account, many banks will require proof that the estate has been probated prior to allowing anyone to move money out of the deceased persons bank accounts.

Life insurance: if the beneficiary of a life insurance policy is the estate itself or if all of the named beneficiaries have predeceased the policy holder then the insurance company will require the estate to be probated prior to distributing the proceeds of the policy.

RRSP/RRIF: If there are no surviving beneficiaries of an RRSP or RRIF then the proceeds from those accounts will be paid into the estate. In that case, your bank will require probate prior to disbursing the funds.

This is not an exhaustive list of the items or situations which will force an estate to be probated. However, if any of these circumstances are present in the estate you are handling you will require probate. Probate is a formal process that requires a lot of court forms to be filled out and timelines to be met. If you would like to learn more about what the process looks like you can read our blog: What is probate.



If you have any questions about Probate, you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $250+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.  

 

By: Dianna M. Rievaj, MBA, LLB - Founding Lawyer

 

The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. Nothing contained on this blog is legal advice or constitutes a legal opinion. While it is our goal to provide information which is current, legislative changes and court decisions, among other matters, may result in some information no longer being current or accurate. You should consult a lawyer before relying on any information. The views expressed herein by individual contributing lawyers posting entries to the blog are solely those of the authors and should not necessarily be attributed to or considered representative of the firm of Highlander Law Group Lawyers