Do Banks in Alberta Require a Grant of Probate to Release Funds?
This answer covers the law of Alberta.
No Alberta law sets a balance below which a bank can release an account without a grant, so it comes down to the policy of the bank or other institution holding the money. Anyone claiming to administer an estate should have a grant or the will, and a bank may reasonably ask to see it first.
A named executor is a personal representative even before any grant is issued. The law also contemplates a named personal representative acting without a grant, as long as they give notices to beneficiaries, family members, a spouse or adult interdependent partner, and the Public Trustee. Whether a particular bank accepts that is a matter for the bank.
For tax purposes, the CRA asks the legal representative for a death certificate or funeral director's statement plus a legal document naming the executor, such as the will, a grant of probate or letters of administration; if there is no will, it uses Form RC552. If a grant is needed, the court fee is a flat tiered amount that tops out at $525. A lawyer can confirm what your bank will want.
Key takeaways
- No statute sets a balance threshold for needing a grant, so each bank or institution applies its own policy.
- A named executor is a personal representative even before a grant issues, and a grant is not always required if the required notices are given.
- For tax purposes, the CRA asks for a death certificate or funeral director's statement plus a legal document naming the executor.
- Benefits payable under a plan on death can pass to a named beneficiary outside the estate if the person designated one by signed instrument or will.