Does a Personal Representative Need a Bond or Guarantee in Alberta?

A bond or guarantee is security that protects an estate if a personal representative mismanages it. If you are applying for a grant in Alberta, you may wonder whether you must arrange one and what it will cost you in effort.

For many Alberta residents the answer is no, but the rules turn on where you live. This article explains the general framework, and a lawyer can confirm how it applies to you.

This article covers the law of Alberta.

The general rule

Section 45 of the Estate Administration Act says no grant issues without a bond or other security unless the Rules or another enactment provide otherwise. The Surrogate Rules then set out who is exempt and who must provide security.

Who needs one and who does not

A non-resident personal representative must provide a bond or other security approved by the court. The bond amount is the gross value of Alberta property, less any amount the court orders deducted for the representative's own beneficial share.

There is also a protection for others. An interested person may seek a bond from a resident representative who is not named as executor in the will.

Reducing or waiving a bond

A non-resident representative may apply in Form GA1 to dispense with the bond, approve other security or reduce the amount. The court acts after considering the interests of beneficiaries and claimants. Form GA14 is a beneficiary's consent to waive or reduce a bond.

Whether a court will agree depends on the facts, including who the beneficiaries are and whether they consent. That is a good question for a lawyer before you file.

Out-of-province grants and professional applicants

The Act applies if the deceased was an Alberta resident or owned Alberta property at death, or the Court finds a grant necessary. The Court may reseal a foreign grant, giving it 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 provision, and it is limited to Alberta property and debts.

For professional applicants such as trust companies, the higher skill standard applies when they act professionally. Whether a particular professional applicant must post security depends on where it is resident and on the Rules, so confirm this with a lawyer.

What to do next

• Confirm where each applicant is resident, since residency drives the bond rule.
• If you are a non-resident, gather the value of the Alberta property to estimate the amount.
• Ask beneficiaries whether they would sign a GA14 consent.
• If you are self-represented, note that the Surrogate Digital Service is preferred but you must be an Alberta resident and one of the applicants.
• Get legal advice before filing if security is likely to be an issue.

Frequently asked questions