How Probate Fees Are Calculated on Estate Value in Prince Edward Island

Executors often ask the same thing early on: how much will probate cost, and what counts toward the number? The answer starts with something called probate value.

This article explains what probate value means in Prince Edward Island, what is left out of it, and how to confirm the figure for your own estate.

This article covers the law of Prince Edward Island.

The fee depends on probate value

Under section 119.1(1) of the Probate Act, probate value means the gross assets of the estate, not including life insurance money passing on death to a named beneficiary. Probate fees are scaled to that probate value.

In other words, the bigger the estate on the probate value measure, the higher the fee band. The fee is not a flat amount for every estate.

Gross or net value?

The Act's definition uses gross assets. In everyday terms, gross means a total before adjustments, which is a different idea from a net figure. How a mortgage or other debts are treated is not something to assume, so ask the Estates Section or a lawyer about your particular estate.

What is counted and what is not

• Counted: the gross assets of the estate.
• Not counted: life insurance paid on death to a named beneficiary, so it does not increase the probate fee.

People often ask about the family home. Whether a house or other asset forms part of the estate depends on how it was owned, for example solely or jointly, and on who it passes to. Anything that is not part of the estate's gross assets would not be in the probate value. A lawyer can confirm how a specific property is treated.

The fee schedule

The schedule in the Probate Act starts at $50 where probate value is up to $10,000 and $100 for $10,001 to $25,000, rising in bands above that. More than one version of the wording and scale is in circulation, so do not rely on a rule of thumb or a figure from a general website. Confirm the scale currently in force before you budget.

Where the fee fits in the application

In Prince Edward Island, an application for probate or letters of administration is made to the Supreme Court's Estates Section by petition under Rule 65 (Estates of Deceased Persons). Rule 65.11 says the petition must state the date of death, the deceased's marital status, and the name, age and address of each child.

• Form 65A is the Petition for Probate, Form 65B is the Petition for Administration with will annexed, and Form 65C is the Petition for Grant of Administration; the executor swears an oath on Form 65D.
• On an intestacy, Form 65C requires the petitioner to list the next of kin and heirs at law and state the grounds of the applicant's right to administer.
• An executor receives Letters Probate (Form 65U); where there is a will but no executor acts, Letters of Administration with the Will Annexed (Form 65W) issue.

There are exceptions. A named executor may decline the role by filing a renunciation (Form 65K). Under the Probate Act, if the named executors fail to take out probate after thirty days' notice from an interested party, letters of administration with the will annexed may be granted instead. On an intestacy where no letters have issued, a person interested must, before applying for a grant themselves, cite those with a prior right to accept or refuse administration.

Where there is no one entitled or willing to administer an estate, the Provincial Administrator of Estates Act governs the Provincial Administrator's role.

Other costs and how to confirm yours

Court filing fees generally follow the Court Fees Act and its regulations, while costs on passing of accounts are fixed under the Probate Act schedule. So a probate petition fee is not necessarily the only charge during an estate.

• List the estate's assets and note how each was owned.
• Set aside life insurance with a named beneficiary, since it is excluded.
• Estimate the total gross value of what remains.
• Call the Estates Section to confirm the fee for that value.
• Ask a lawyer how a home, joint property or debts affect your case.
• Remember that tax filings carry their own dates, and a CRA clearance certificate may be needed before distribution.

On the tax side, the general rule is that the final T1 return is due April 30 of the following year if death occurred January 1 to October 31, and six months after the date of death if death occurred November 1 to December 31, with any balance owing payable by the same date unless noted otherwise. A different rule applies if the deceased or their spouse or common-law partner carried on a business: the return is then due June 15 for deaths January 1 to December 15, although any balance is still due April 30, and six months after the date of death for deaths December 16 to 31. Death certificates come from the Vital Statistics Division, and a certificate showing cause of death is restricted to certain relatives such as a spouse, child, parent or sibling.

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