- Probate fees in Prince Edward Island are scaled to the probate value of the estate, which is its gross assets.
- Life insurance paid to a named beneficiary is left out of probate value, so it does not increase the probate fee.
- Other fee-saving steps, such as joint ownership, can carry real risks and are worth reviewing with a lawyer before you act.
Probate fees can feel like a large cost at a difficult time, and many families ask whether there is a lawful way to lower them. Planners ask the same question. The answer starts with understanding what the fee is actually based on.
This article explains what counts toward the fee in Prince Edward Island, what is clearly left out, and why some popular strategies deserve caution. It is general information, not advice for your situation.
This article covers the law of Prince Edward Island.
What the probate fee is based on
An application for probate or letters of administration is made to the Supreme Court's Estates Section by petition under Rule 65. Fees for that petition are scaled to the probate value of the estate.
Under the Probate Act, probate value means the gross assets of the estate, not including life insurance money passing on death to a named beneficiary. Because it is a gross figure, the fee is generally tied to what the estate owns rather than to what is left after debts.
The schedule starts at $50 for a petition where probate value is up to $10,000, and $100 for $10,001 to $25,000, rising in bands above that. The higher bands should be confirmed with the Estates Section or a lawyer before you rely on any figure.
Life insurance and named beneficiaries
Life insurance paid to a named beneficiary is excluded from probate value, so it does not increase the probate fee. That is the clearest lawful point on the fee base.
The benefit works only if a beneficiary is actually named and the policy pays that person directly. If the money instead falls into the estate, it would not fit that exclusion, so it is worth checking how each policy is set up. Beneficiary choices also affect who receives the money, so they should match what the person actually wants.
Joint ownership and other strategies: weigh the risks
Joint ownership is often suggested as a way to keep assets out of the estate. Whether a particular asset counts toward probate value depends on how it is held and on the facts, so confirm it before relying on it.
- Control: adding someone to title or an account can give that person real rights during your lifetime.
- Fairness: an asset that passes to one person may leave others in the family with less than intended, which can lead to disputes.
- Tax and creditors: changing ownership can have tax consequences and may expose the asset to the other owner's problems.
- Intent: if the reason for the change is unclear, it can be questioned later.
Costs beyond the probate fee
Lowering the fee is only one part of the picture. Several other costs and obligations apply whatever the probate value is.
| Item | What to know |
|---|---|
| Court filing fees | These generally follow the Court Fees Act and its regulations. |
| Passing of accounts | Costs are fixed under the Probate Act schedule. |
| Final tax return | Due April 30 of the following year for a death from January 1 to October 31, or six months after death for a death from November 1 to December 31. |
| Final return with a business | If the deceased or their spouse or common-law partner carried on a business, it is due June 15 for deaths January 1 to December 15, though any balance is still due April 30. |
| Clearance certificate | The legal representative should determine whether one is needed before distributing property. |
A strategy that saves a small fee but creates a tax problem or a family dispute may cost more overall.
What to do next
- List the assets and note how each is held and whether it has a named beneficiary.
- Review life insurance policies to confirm a beneficiary is named.
- Ask the Estates Section or a lawyer to confirm the current fee schedule under the Probate Act.
- Talk to a lawyer or accountant before changing ownership of any asset.
- Keep records of every change and the reason for it.
If an estate is already open, the legal representative should confirm the fee base with a lawyer before filing.
Frequently asked questions
Does life insurance increase probate fees in PEI?
Not when it is paid to a named beneficiary. Probate value does not include life insurance money passing on death to a named beneficiary.
How much are probate fees in PEI?
The fee is scaled to probate value. The schedule starts at $50 where probate value is up to $10,000 and $100 for $10,001 to $25,000, rising in bands above that. Confirm the higher bands with the Estates Section.
Is joint ownership a safe way to avoid probate fees?
Not necessarily. It can change who owns and controls an asset during life, and its effect on the estate depends on the facts. Get legal advice before putting anyone on title or an account.
Can I skip probate entirely to avoid the fee?
Whether probate is needed depends on the assets and who holds them. A lawyer can confirm this for your estate. Where a grant is needed, the application is made by petition to the Estates Section.
Sources
- PEI Supreme Court – Rule 65 Estates of Deceased Persons — courts.pe.ca
- Probate Act, RSPEI 1988, c P-21, s. 119.1 — princeedwardisland.ca
- PEI Supreme Court – Rule 58 — courts.pe.ca
- CRA – Filing and payment due dates (someone who died) — canada.ca
- CRA – Doing taxes for someone who died — canada.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 $631.35, tax included. Third-party fees are extra.