Do Executors Need a Bond or Guarantee in Alberta Probate?

If you are applying for a grant of probate or administration in Alberta, you may have heard that the court can ask for a bond or guarantee. The idea is a financial safety net for the people who depend on the estate, in case something goes wrong in the administration. Whether it applies to you depends mostly on where you live and who else is acting.

This article explains the general rule, who is exempt, how the amount is worked out, and how a person can ask the court to waive or lower it. Every estate is different, so use this as a map and confirm your own situation with a lawyer.

This article covers the law of Alberta.

The basic rule: no grant without security

Under section 45 of the Estate Administration Act, a grant does not issue without a bond or other security unless the Surrogate Rules or another enactment provide otherwise. The Rules do set out exceptions, including one for a personal representative who lives in Alberta, which is covered below. How this applies to you depends on your situation, so it is worth confirming with a lawyer.

A grant is the court document that gives the personal representative authority. A grant of probate confirms the executor named in a will, and where there is no will a grant of administration is requested from the court. Either way, the bond question comes up at the grant stage.

Who has to provide a bond

Under Surrogate Rule 28(1), a personal representative who is not resident in Alberta must provide a bond or other security approved by the court. The amount under rule 28(4) is the gross value of the Alberta property, less any amount the court orders deducted for the representative's own beneficial share.

There is also a route for beneficiaries and others to ask for security from someone who lives here. Rule 30(1) lets an interested person seek a bond from a resident representative who is not named as executor in the will. That can matter where, for example, an administrator is being appointed and others have concerns.

Who is exempt

No bond is needed under rule 28(2) if the personal representative is resident in Alberta, or if one of two or more representatives is resident in Alberta. So if you are one of several people applying together and at least one of you lives in Alberta, the non-resident co-representative is generally not required to post a bond.

Asking the court to waive or reduce the bond

A non-resident representative is not stuck with the default. Under rule 29(1), they may apply in Form GA1 to dispense with the bond, approve other security or reduce the amount. Under rule 31, the court acts after considering the interests of beneficiaries and claimants.

Beneficiary support can help. Form GA14 is a beneficiary's consent to waive or reduce a bond. The court still decides, so consent is a useful piece of the application rather than a guarantee of the result.

• Dispense with the bond entirely.
• Approve other security in place of a bond.
• Reduce the amount of the bond.

Related situations to watch for

If the deceased lived outside Alberta, the grant may be a resealed or ancillary one. The Court may reseal a foreign grant so that it has the same effect as an Alberta grant, subject to security requirements. An ancillary grant is available for Alberta property where the deceased resided in a jurisdiction not covered by the resealing rule, and it is limited to Alberta property and debts.

The Act applies if the deceased was an Alberta resident or owned Alberta property at death, or the Court finds a grant necessary. Because the bond amount is tied to the gross value of Alberta property, the value you report matters.

If you plan to apply without a lawyer, note that the Surrogate Digital Service is preferred for self-represented applicants, but they must be Alberta residents and one of the applicants. A non-resident without a resident co-applicant should therefore get advice on how to proceed.

What to do next, and what about cost

The rules set out when security is required and how the amount is calculated, but the cost of obtaining a bond or other security depends on the provider and the amount involved. Ask the provider for a quote early, and ask a lawyer or accountant how the cost is treated in the estate accounts.

• Confirm whether each person applying lives in Alberta.
• Estimate the gross value of the deceased's Alberta property.
• Check whether a resident co-representative could change the answer.
• Talk to beneficiaries about whether they would sign a GA14 consent.
• Decide whether to ask the court to dispense with, replace or reduce the bond.
• Speak with a lawyer before filing if you live outside Alberta.

Frequently asked questions