Executor’s Fees, Probate Fees, Legal Fees and Taxes:
When someone passes away the Estate is required to pay a few unavoidable costs. These expenses are as follows:
Probate Fees:
In the past, when you applied to Court for probate you had to pay probate fees. The probate fees were based on the value of the estate. The more valuable the estate, then the higher the probate fees. For example a $400,000 estate would attract probate fees of $2,800. However, effective November 9, 2020 the Court of Queen’s Bench dispensed with all probate fees.
Legal Fees:
Legal fees are also calculated on the basis of the value of the Estate. The fees are typically calculated pursuant to a Court of Queen’s Bench Tariff. However, at ProbateWinnipeg.com we strive to provide efficient and affordable service. If the Estate is fairly simple and straightforward, we typically discount our fees significantly below the Tariff.
Executor Fees:
In some cases an Executor is entitled to compensation for their time and trouble in winding up the estate. In such instances the Executor will – with the assistance of their lawyer – ask the beneficiaries to consent to a fee which compensates the Executor for all their hard work. We encourage our Executors to request this compensation, as they often expend a great deal of time and energy dealing with the estate.
Taxes:
It is said that the only certainty in life is death and taxes. When a loved one passes away, it is necessary to file two Tax Returns with Revenue Canada. The first tax return covers the period prior to their death. For example, if someone should pass away on March 8th, then a tax return must be prepared to cover the period of January 1st to March 8th of that year. A second tax return must also be prepared and filed for the Estate covering the period after the deceased’s passing.
Finally, the Executor will want to secure a Clearance Certificate from Revenue Canada, which is an official confirmation that all taxes have been paid.