If an estate involves property outside of PEI, the original Grant of Probate from the Supreme Court of Prince Edward Island is not enough. You must apply to “reseal” the probate order in the province where the asset is located, which often requires paying additional probate fees to that second jurisdiction.
Many residents of Prince Edward Island enjoy owning property beyond our beautiful shores. It is incredibly common for Islanders to have a winter condo in Florida, a family cottage in Nova Scotia, or extensive investment accounts registered in Ontario. While building out-of-province wealth is great during your lifetime, it creates a significant legal hurdle for your Executor when you pass away. 📍
When an Executor applies for probate, the Supreme Court of Prince Edward Island issues an order confirming their legal authority. However, PEI courts only have jurisdiction over assets located within PEI. A bank in Halifax or a land registry in Toronto will not automatically recognize a PEI court document. To legally access those assets, the Executor must complete an ancillary process known as “Resealing” the Grant of Probate. This guide will help you navigate the inter-provincial red tape.
Step-by-Step Process for Resealing Probate
Handling out-of-province assets requires coordination between courts. Generally, Executors handling complex estates follow these steps to gain control of external properties.
Step 1: Obtain the Initial Grant of Probate in PEI
First, you must start where the deceased primarily lived. You must apply for a standard Grant of Probate at the Estates Division of the Supreme Court of PEI. You will pay the standard PEI probate fees (which are capped at $400 CAD for estates over $100,000) based on the assets situated on the Island. This original grant is your foundational legal document.
Step 2: Identify and Isolate Out-of-Province Assets
Take a strict inventory of what is located elsewhere. Is it physical real estate, or just a bank account? If it is a bank account at a national bank (like RBC or Scotiabank) that originated in another province, the bank’s internal legal department will demand that you get the PEI probate resealed in the province where the branch is located before they release the funds.
Step 3: Hire Legal Counsel in the Second Jurisdiction
Because PEI lawyers are only licensed to practice law in PEI, they cannot file court documents in British Columbia or Ontario. You will generally need to hire a secondary law firm located in the province where the asset is held. Your PEI lawyer will communicate with the out-of-province lawyer to supply court-certified copies of the Will and the original PEI Grant. 🤝
Step 4: Apply for a Reseal (Ancillary Grant)
The secondary lawyer will submit an application for an Ancillary Grant of Probate (or Resealing) to their local court. You will only be required to list the assets located in that specific province, not the total global estate. Once the secondary court reviews the PEI documents, they will “reseal” it with their own provincial stamp, validating your authority locally.
Step 5: Liquidate and Transfer the Assets
Once you have the resealed document in hand, you can finally present it to the out-of-province bank or the local land registry office. You will be able to sign the deed to sell the cottage in Nova Scotia or withdraw the mutual funds from the Ontario branch, moving the money back to the central PEI estate trust account.
How Much Does it Cost in PEI vs Other Provinces?
Resealing is expensive because you are dealing with two separate court systems and two sets of probate taxes.
- PEI Probate Fees: PEI has very low probate fees. Estates over $100,000 pay a flat maximum fee of $400 CAD to the Supreme Court of PEI.
- Second Jurisdiction Taxes: When you reseal, you must pay the probate tax rate of the other province on the assets located there. For example, Ontario charges roughly 1.5%, and Nova Scotia charges around 1.7% on the asset’s value.
- Extra Legal Fees: Hiring an out-of-province lawyer to process the reseal usually adds another $1,500 to $3,500 CAD in legal expenses to the estate.
| Location of Asset | Estimated Probate Tax Rate | Impact on Estate |
|---|---|---|
| Prince Edward Island | Flat $400 (if over $100k) | Very Low Cost |
| Nova Scotia | ~1.7% of asset value | High Cost |
| Ontario | ~1.5% of asset value | High Cost |
| Alberta | Max $525 flat fee | Low Cost |
How Long Does the Process Take?
Dealing with out-of-province assets will severely delay the distribution of the estate. The process is sequential; you cannot start the second step until the first is finished.
Getting the initial Grant of Probate in PEI typically takes 2 to 4 months. Once you have it, sending it to the second province and waiting for their court to process the resealing application usually takes another 2 to 6 months, depending heavily on the backlog in that specific jurisdiction (courts in Toronto or Halifax can be very slow). Expect the entire ordeal to take close to a year.
Frequently Asked Questions (FAQ)
Do joint accounts outside of PEI need to be resealed?
Generally, no. If the out-of-province bank account or real estate was held in “Joint Tenancy with Right of Survivorship,” the asset bypasses probate entirely. The surviving owner simply needs to present a Death Certificate to claim full ownership.
What happens if the property is in the United States?
If the deceased owned a property in Florida or Arizona, resealing does not apply. You must hire an American attorney to file for “Ancillary Probate” in that specific US state, which involves a completely different legal and tax system (including potential IRS estate taxes).
Can I avoid resealing by adding my child to the out-of-province deed now?
You can, but this is incredibly risky. Adding a child to a property deed triggers an immediate capital gains tax event with the CRA. Furthermore, if your child gets divorced or goes bankrupt, their half of your property could be seized by their creditors.
Can a PEI lawyer do everything for me?
Your local PEI lawyer will handle the main estate administration and will act as the point of contact, but they are legally required to hire an “agent” (another lawyer) licensed in the secondary province to physically file the court documents there.
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