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:
When you apply to Court to Probate the Will or to secure Letters of Administration, you must pay probate fees to the Court. The probate fees are based on the value of the estate. Where the estate is worth $10,000.00 or less, then the probate fees are $70.00. Where the estate is valued at more than $10,000.00, then the probate fees are 0.7% of the total value of the estate.
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.
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.
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.