- Land is valued at fair market value less registered mortgages and encumbrances, but personal property is counted at its gross value.
- Unsecured debts such as credit cards and lines of credit are not deducted from personal property.
- The estate is valued as of the date of death, and the probate tax is paid with the application.
When someone dies, one of the first questions an executor asks is how much it will cost to get probate. The answer depends on the value of the estate, and many people assume that everything the person owed is simply subtracted first. In Nova Scotia, it is not that simple.
This article explains how the value is worked out, which debts can reduce it and which cannot, and what is left out altogether. It does not give the tax rates, because those can change and should be checked against the current court fee table.
This article covers the law of Nova Scotia.
How Nova Scotia values the estate
For probate tax, security and the inventory, the value of the estate is the gross value of the personal property plus the fair market value of the real property, less registered mortgages and encumbrances. In plain words, land is counted after certain debts registered against it, while everything else is counted in full.
The estate is valued as of the date of death, not the date you apply or the date you eventually sell anything. If the court believes the value is higher than the inventory figure, it may inquire into the matter.
Mortgages and other registered debts on land
A registered mortgage on a house reduces the land value that is counted, because the value of real property is its fair market value less registered mortgages and encumbrances. How this works out for a particular property depends on the facts, so it is worth confirming with a lawyer.
The key word is registered. The reduction is tied to mortgages and encumbrances on the real property, not to debts in general. Some websites say mortgages are never deducted, but the regulation itself allows the deduction for land.
Unsecured debts are not deducted
Personal property is counted at its gross value, and unsecured debts are not deducted from it. That means credit card balances, lines of credit and personal loans that are not registered against land do not lower the value used for probate tax.
A mobile home is treated as personal property. So it is counted at gross value, rather than getting the land-based reduction for a mortgage.
| Item | How it is counted |
|---|---|
| House or land with a registered mortgage | Fair market value less the registered mortgage and encumbrances |
| Bank accounts, vehicles, investments | Gross value |
| Credit cards, lines of credit, unsecured loans | Not deducted from personal property |
| Mobile home | Personal property, gross value |
What the Form 8 application leaves out
On the Form 8 application, the value of assets passing under the will excludes real property outside Nova Scotia, real property held in joint tenancy, and insurance. Joint property that passes by survivorship therefore does not add to the value used for the fee.
- Land located outside Nova Scotia is left out.
- Land held in joint tenancy is left out.
- Insurance is left out.
Whether a particular asset falls into one of these groups can depend on how it is held, so it is worth confirming if you are unsure.
When the tax is paid and what to do next
An application for a grant of probate must be accompanied by payment of the probate tax, along with the original will with proof of execution, proof of death, and any required renunciations or security. So you need a reasonable value before you apply.
- List every asset and its value as of the date of death.
- Separate land from personal property, and note any registered mortgages on the land.
- Identify assets held in joint tenancy, insurance and land outside Nova Scotia.
- Check the current Probate Court fee table on courts.ns.ca for the tax amount.
- Keep your records in order, since the personal representative later files a full inventory in Form 29 within 3 months of the grant.
- Talk to a lawyer if the values are unclear or the estate is complicated.
After the grant, the Form 29 affidavit adjusts the probate tax, which can mean no change, an additional payment or a refund.
Frequently asked questions
Does a mortgage on the house reduce probate tax in Nova Scotia?
A registered mortgage or encumbrance on real property is deducted from the fair market value of the land when the estate is valued. The mortgage must be registered against the land for this to apply. A lawyer can confirm how it applies to your property.
Are credit card debts and lines of credit deducted?
Unsecured debts, such as credit card balances, are not deducted from personal property, which is counted at its gross value. A line of credit is treated differently only if it is registered against the land as a charge, because registered mortgages and encumbrances reduce the land value counted. Whether a particular line of credit qualifies depends on how it is secured, so it is worth confirming with a lawyer. The debts still need to be dealt with by the estate either way.
Is the value based on the date of death?
Yes. The estate is valued as of the date of death. If the court believes the value exceeds the inventory figure, it may inquire into the matter.
Where do I find the current probate tax amounts?
Check the current Probate Court fee table on courts.ns.ca, since amounts can change. The tax is paid with the application. Secondary websites may be out of date or wrong about mortgages.
Sources
- Probate Court Practice, Procedure and Forms Regulations — novascotia.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a wills & estates question
A single will with us is from $682.86, tax included. Third-party fees are extra.