In New Brunswick, probate fees are based on the total value of the deceased’s estate. For estates valued at $20,000 CAD or less, the fee is a flat $200 CAD. For estates between $20,001 and $100,000 CAD, the fee is $200 plus $5 for every $1,000 of the value over $20,000. For estates over $100,000 CAD, the fee is $600 plus $15 for every $1,000 of the value over $100,000.
Losing a loved one is an incredibly difficult experience, and having to manage their financial and legal affairs can feel overwhelming. If you are named as an executor in a Will, you may need to apply for Letters of Probate in New Brunswick. This is an official legal document issued by the Probate Court of New Brunswick. It proves that the Will is legally valid and grants you the official authority to access the deceased person’s bank accounts, sell their real estate, and distribute their assets.
Understanding the costs associated with this process is essential for proper estate planning. 💰 Whether you live in Fredericton, Moncton, or Saint John, the provincial government charges a mandatory fee to process your application. This is commonly referred to as a “probate tax” or “probate fee.” Unlike some other Canadian provinces that charge massive percentage rates, New Brunswick’s system is relatively straightforward, but you must calculate the total gross value of the estate carefully before writing a cheque to the Minister of Finance.
Step-by-Step Process in New Brunswick
Applying for Letters of Probate involves a highly structured administrative process. 📍 Most executors choose to hire a local law firm to help them navigate these steps, as making an error on the forms can lead to lengthy court delays. Here is how the process generally unfolds.
Step 1: Gathering and Valuing the Assets
Before you can apply, you must know exactly what the estate is worth. You will need to gather bank statements, property assessments, and investment portfolios. It is important to note that you only pay probate fees on assets that actually pass through the estate. Assets with named beneficiaries, such as life insurance policies or RRSPs, are generally excluded from this calculation.
Step 2: Filling Out the Required Forms
Once you have the total value, your lawyer will help you complete the required Probate Court forms. 📝 You must swear an affidavit confirming the value of the estate and promising to administer it according to the law. You must also notify Service Canada to cancel the deceased’s pensions and benefits to avoid overpayments.
Step 3: Filing at the Local Courthouse
Your completed application, the original Will, and the death certificate must be submitted to the local courthouse in the judicial district where the deceased lived. At this exact moment, you must also submit a certified cheque or money order to cover the full provincial probate fees.
How Much Does it Cost in New Brunswick?
The probate fees in New Brunswick are calculated using a three-tier system based on the total value of the estate. 💵 Under section 75(2) of the Probate Court Act, you must deduct the outstanding value of any mortgages or other encumbrances on New Brunswick real property before calculating the probate tax. However, other general personal debts (like credit cards or loans) are not deducted.
- Estates of $20,000 or less: You will pay a flat fee of $200 CAD.
- Estates of $20,001 to $100,000: You will pay a base fee of $200 CAD plus $5 CAD for every $1,000 (or part thereof) by which the value of the estate exceeds $20,000.
- Estates over $100,000: You will pay a base fee of $600 CAD plus $15 CAD for every $1,000 (or part thereof) by which the value of the estate exceeds $100,000. For example, a $500,000 estate would owe $6,600 CAD ($600 plus $15 per $1,000 of the $400,000 excess).
| Estate Value (CAD) | Probate Fee Formula | Example Fee (CAD) |
|---|---|---|
| $18,000 | Flat Fee ($20,000 or less) | $200 |
| $100,000 | $200 + $5 per $1,000 over $20,000 | $600 |
| $750,000 | $600 + $15 per $1,000 over $100,000 | $10,350 |
How Long Does the Process Take?
Obtaining the official Letters of Probate is not an overnight process. ⌛ After your law firm submits the application and the fee cheque to the court, it generally takes the court clerks between 4 to 8 weeks to review the file and issue the official document. During busy periods, this wait time can be longer.
However, obtaining the document is just the beginning. Actually administering the estate-which involves selling property, filing final tax returns with the CRA (Canada Revenue Agency), and waiting for a Clearance Certificate-typically takes an executor anywhere from 1 to 2 years to fully complete.
Frequently Asked Questions (FAQ)
Do all estates in New Brunswick have to go through probate?
No. If the deceased owned everything jointly with a surviving spouse, or if their assets were entirely made up of accounts with named beneficiaries, probate might not be necessary. However, if they owned real estate solely in their name, probate is almost always legally required.
Can I pay the probate fee from the deceased’s bank account?
Yes. Most Canadian banks will allow an executor to draft a certified cheque directly from the deceased’s frozen bank account specifically to pay the Minister of Finance for probate court fees.
Does the probate fee cover my lawyer’s fees?
No. The probate fee is strictly a government tax paid to the province. You will need to pay your law firm separately for their legal services, though these legal fees are generally paid out of the estate’s funds, not from your own pocket.
Are debts subtracted before calculating the probate fee?
It depends. Under section 75(2) of the Probate Court Act, you must deduct the outstanding balance of any mortgage or other encumbrances on New Brunswick real property from its value before calculating the probate fee. However, other personal debts (like credit card balances, car loans, or funeral expenses) cannot be subtracted.
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