Can an estate legally avoid probate fees in Saskatchewan?
This answer covers the law of Saskatchewan.
Partly. Some assets pass outside probate, but an interest in land registered solely in the deceased's name still requires it. Land held in joint tenancy with survivorship, bank accounts with survivorship, life insurance with a named beneficiary, and RRSPs or RRIFs with a named beneficiary pass outside probate.
For a standard probate application, the fee is $200 plus $7.00 per $1,000 of Total Part 1 Assets on the Statement of Property. Estates of $15,000 or less administered by the applicant pay $300 plus the same levy. Assets passing outside the estate are excluded, and for real estate only the equity counts.
Tax is a separate matter. On death the person is treated as having sold all property at fair market value, which is a federal income tax and not an inheritance tax. Property passed to a surviving Canadian-resident spouse may not result in a gain or loss on the final return. An unmatured RRSP is included in income on the final return unless it is transferred to the spouse's RRSP by the end of the year after death. Because the right choice depends on your situation, speak with a lawyer or accountant before changing how anything is held.
Key takeaways
- Land in joint tenancy with survivorship, survivorship bank accounts, life insurance with a named beneficiary and RRSPs or RRIFs with a named beneficiary pass outside probate.
- An interest in land registered solely in the deceased's name still requires probate.
- A standard probate application costs a $200 Local Registrar fee plus $7.00 per $1,000 of Total Part 1 Assets, estates of $15,000 or less administered by the applicant pay $300 plus the levy, and assets passing outside the estate are excluded.
- Avoiding probate does not avoid income tax, because property is treated as sold at fair market value just before death.