April 21, 2022 by Jen Schreurs
Associate Jen Schreurs regularly advises clients in the practice areas of wills, trusts, estate and incapacity planning, estate administration, and business law.
As Jen discusses, probate fee planning is the process of reducing the value of your estate that is subject to probate to reduce the amount of probate fees payable on death.
Transcript:Probate is the court process confirming that your Will is valid or appointing your personal representative in the case of intestacy. Probate fees are provincial fees on death. In British Columbia, it is a 1.4% calculation of the gross value of your estate. Probate fee planning is reducing the value of your estate that is subject to probate to reduce the amount of probate fees payable on death. There are methods of probate fee planning that can be implemented without legal assistance. However, doing so may create dangerous consequences for you and your estate. There are also methods of probate fee planning that require legal expertise to implement. It is important to remember that probate fees are only one piece of a complex jigsaw puzzle. Implementing any probate fee planning may lead to earlier taxation of your capital property. As a result, this may eliminate the ability for a family member to access a tax saving mechanism such as the principal residence exemption, or it may lead to a higher tax bill payable on death.