Which Assets Avoid Probate in Saskatchewan? Joint and Designated Property

Many families are surprised to learn that not everything a person owns goes through the estate. Some property, such as assets held with survivorship or with a named beneficiary, passes outside probate.

This article explains which Saskatchewan assets generally avoid probate, which ones do not, and the exceptions that catch people out.

This article covers the law of Saskatchewan.

What probate actually covers

Probate is the court process in which the executor applies to the Court of King's Bench for Letters Probate. The court says the only asset that absolutely requires probate is an interest in land, including mineral rights, registered solely in the deceased's name. For other financial assets, the bank, credit union or trust company decides whether it needs Letters, so the first step is to ask the institution.

Property that passes outside the estate

These assets are sometimes described as Part II assets on the Statement of Property, along with assets located outside Saskatchewan. Because they pass outside the estate, they are excluded when the probate fee is calculated.

Other plans, such as a TFSA, are not listed in the table above, so how they are treated depends on the plan and how it was set up. Ask the institution what it requires, since it decides whether it needs Letters.

Where the exceptions are

• Land in the deceased's sole name always needs a grant for land transactions with Information Services Corporation (ISC) if the estate includes real estate.
• Small estates: Letters may not be required where the estate is $25,000 or less and includes no real property.
• Survivorship and named-beneficiary assets pass outside probate, but how this applies if the beneficiary or surviving owner has died, or no beneficiary was named, depends on your situation, so it is worth confirming with a lawyer.
• A grant obtained outside Saskatchewan must be resealed before dealing with Saskatchewan assets, and a Saskatchewan grant may need resealing elsewhere for assets in another province.
• Assets with survivorship or a named beneficiary are listed as passing outside probate, but how a will interacts with them depends on your situation, so it is worth confirming with a lawyer.

Probate fees and why the difference matters

The standard probate application has a Local Registrar fee of $200 plus a levy of $7.00 per $1,000, or portion thereof, of Total Part 1 Assets on the Statement of Property. Assets passing outside the estate are excluded and, for real estate, the court says only the equity counts.

As an example, a Part 1 estate of $500,000 produces a levy of $3,500, plus the $200 fee. Fees may change, so confirm the current amounts before you budget.

Tax still applies and what to do next

Passing outside probate is a court matter, not a tax matter. On death a person is considered to have sold all their property just before death at fair market value, with any capital gain or loss reported on the final return; this is a federal income tax, not an inheritance tax. The value of an unmatured RRSP at death is included in the deceased's income on the final return, though an RRSP transferred to the spouse's RRSP by the end of the year after death is not included in the deceased's return. Property passed to a surviving Canadian-resident spouse or common-law partner may result in no gain or loss, and the principal residence may be wholly or partly exempt if designated.

• List every asset and how it is held: sole name, joint, or with a named beneficiary.
• Get copies of beneficiary designations and the title or account documents.
• Ask each institution whether it needs Letters.
• Confirm with ISC whether any land is held solely in the deceased's name.
• Speak with a lawyer or accountant about tax on RRSPs, RRIFs and property.

Frequently asked questions