Planning for the future can feel overwhelming, but understanding how to avoid probate in Saskatchewan doesn't have to be complicated. While probate serves an essential legal purpose, many families prefer to minimize or avoid this process entirely to save time, reduce costs, and maintain privacy during a difficult time.
If you're a Saskatchewan resident looking to protect your loved ones from unnecessary delays and expenses, this guide will walk you through practical strategies to help your estate bypass the probate process.Â
By taking these steps now, you can make sure your assets transfer smoothly to your beneficiaries when the time comes.
Why many families choose to avoid probate:
- Delays in asset distribution: Probate can postpone your beneficiaries receiving their inheritances by weeks or even months
- Additional costs: Your estate pays probate fees (about 0.7% of estate value in Saskatchewan), plus court charges and potentially legal fees
- Loss of privacy: Once probated, your will becomes a public record that anyone can access
How Does Probate Work in Saskatchewan?
Probate in Saskatchewan is the court-supervised process where the Court of King's Bench validates your will and grants your executor the legal authority to manage your estate. Your executor must apply for letters of probate by filing your will, death certificate, detailed asset lists, and other required documents and paying the necessary fees.
Whether probate is needed depends on how your assets are owned and whether they have designated beneficiaries. Understanding which assets avoid probate is key to simplifying your estate plan.
Probate vs Non-Probate Assets in Saskatchewan
Even if probate isn’t legally required, some banks or institutions may still request Letters Probate before releasing assets.
Why Avoid Probate? Key Benefits
Many Saskatchewan families choose to minimize probate for several compelling reasons:
Faster access to inheritances: When assets bypass probate, your beneficiaries can receive them much sooner. The court process can add weeks or months of waiting time, which can be particularly challenging for families needing immediate funds access.
Reduced costs: In Saskatchewan, probate fees add up quickly. For example, on a $300,000 estate, you'd pay over $2,100, including a $200 application fee and a 0.7% levy on the estate's value.
Privacy protection: Unlike probated wills, which become public records, assets that transfer outside of probate keep your family's financial affairs private. This confidentiality can protect your beneficiaries from unwanted attention or claims.
Simplified administration: Avoiding probate means less paperwork, fewer court requirements, and a more straightforward process for your executor. This reduces stress during an already difficult time for your loved ones.
Strategies to Avoid Probate in Saskatchewan
There are a few approaches to keeping assets out of the probate process. The right strategy for you will depend on your specific situation, but many families find success combining multiple approaches.
Transfer Assets to Beneficiaries During Your Lifetime
This approach works well for cash gifts. But it’s important to think carefully before gifting other types of assets—especially ones that have increased in value, like investment properties or stocks. While Canada doesn’t charge gift taxes, you might have to pay capital gains tax when transferring those kinds of assets.
Canada doesn't impose gift taxes, but you may face capital gains tax when transferring appreciated assets like investment properties or stocks. Your principal residence can typically be gifted tax-free, but other real estate or investments may trigger tax obligations.
If you do decide to gift assets during your lifetime, you may want to consider the following:
- You permanently give up ownership and control of the asset, so you should be sure you won't need these assets for your own retirement or care
- It’s important to document significant gifts to prevent family confusion later
- Consult a tax professional for valuable assets to understand implications
Joint Ownership of Property
Holding assets in joint ownership with right of survivorship is particularly effective for married couples and family members. When one joint owner passes away, the surviving owner automatically inherits the deceased's share by law, completely bypassing probate.
For example, if you and your spouse own your home under joint ownership with survivorship, your spouse simply becomes the sole owner upon your death. The land title can be updated with a death certificate and a simple form; no court approval is needed.
While joint ownership is powerful, it should be used thoughtfully.
Keep in mind: when you add someone as a joint owner, they become a co-owner right away. That means their financial or legal issues could affect the asset, and things might get tricky if your relationship changes down the line. This is particularly important for common-law couples in Saskatchewan, where relationship status can affect inheritance rights. Always document your intentions clearly to prevent future disputes.
Beneficiary Designations on Financial Accounts
One simple way to make life easier for your loved ones is to make sure you financial accounts have up-to-date beneficary designations. If you live inSaskatchewan, you can name beneficiaries on life insurance policies, RRSPs, RRIFs, TFSAs, and pension plans. When you pass away, these funds will go directly to the person you’ve chosen, without going through your estate or the probate process.
Best practices for designating beneficiaries:
- Name both primary and contingent (backup) beneficiaries
- Review and update designations after major life events
- Keep records of all your designations in a safe place
- Consider whether your bank offers payable-on-death options for regular accounts
Remember that while these designated assets avoid probate fees, they may still have tax implications. RRSPs and RRIFs are generally taxable on your final return, while life insurance proceeds are typically tax-free to beneficiaries.
Setting Up a Trust
Trusts offer a more sophisticated approach to avoiding probate, and can be particularly beneficial for larger or more complex estates. A trust is a legal arrangement where you transfer asset ownership to a trustee who manages them for your beneficiaries' benefit.
Revocable living trusts allow you to stay in control while you're alive. Your assets pass smoothly to your beneficiaries when you've passed.
Irrevocable trusts, such as alter ego trusts for Canadians 65+, permanently remove assets from your estate and may offer additional tax benefits. Learn more about living trusts in Canada to understand which option might work best for your situation.
Trusts can also offer tax advantages, but they need careful planning. Talk to a legal or financial advisor to explore your options.
Key Benefits of Setting Up a Trust
- Complete probate avoidance: Trust assets don't become part of your estate
- Enhanced privacy: Trust terms remain confidential, unlike probated wills
- Flexible control: You can outline detailed conditions for when and how beneficiaries receive assets
- Asset protection: Protect inheritances from beneficiaries' creditors or relationship issues
- Potential tax advantages: Certain trusts can defer capital gains or reduce the overall tax burden
Trusts can also offer tax advantages, but they need careful planning. Talk to a legal or financial advisor to explore your options.
Small Estate Exemptions and Simplified Processes
Saskatchewan has special rules that can reduce paperwork or even skip probate entirely, if you’re settling a smaller estate.. These rules, updated in 2020, and can save families time, money and stress during a difficult period:
Estates $25,000 or less (excluding real estate): You may be able to skip probate entirely by applying for a “small estate order”. A family member or other interested person can ask the court for permission to distribute the estate, with a flat court fee of $100 instead of going through the full probate process.
Estates $15,000 or less (any assets): Even estates with real estate can use a simplified probate process where the court registrar helps prepare all paperwork for a flat $300 fee, plus the standard probate levy.
Standard Probate vs Saskatchewan Small Estate Procedures
If your estate might qualify, it’s a good idea to make sure your loved ones know about these options. Even if other strategies don’t apply to your situation, Saskatchewan’s small estate options could still help your family save time, money, and stress.
Working with Estate Professionals in Saskatchewan
While many probate-avoidance strategies are straightforward, working with experienced professionals, especially in more complex situations, ensures your plan is legally sound and tax-efficient.
Estate or probate lawyers can draft the necessary documents and advise on the best strategies for your situation. They understand Saskatchewan's specific laws and can help you avoid common mistakes to make sure your wishes are carried out smoothly.Â
Financial or estate planners take a “big-picture” view of your assets and goals. They can help you decide how to title accounts, choose the right beneficiaries, and explore tools like trusts or insurance that might fit your needs.
Tax professionals can help make sure your probate-avoidance plan doesn’t come with surprise tax consequences. They can offer guidance on things like gifting property, capital gains, and how to minimize taxes on your estate overall.
Getting expert advice early can help your family avoid unnecessary costs, delays or confusion.
Common Mistakes to Avoid in Probate Planning
Here are key mistakes Saskatchewan residents should avoid:
Failing to create any estate plan: Not having a will guarantees court involvement and may result in asset distribution that doesn't align with your wishes. Even if you can't avoid probate entirely, having a will in Saskatchewan streamlines the process significantly.
Assuming a will automatically avoids probate: Many people believe having a will means no probate is needed. In reality, most wills must be probated to be effective. A will is essential, but you need additional strategies to actually avoid probate.
Forgetting to update beneficiaries and ownership: Life events like marriage, divorce, or a beneficiary's death can leave your estate plan out of date. Regularly review and update beneficiary designations, joint ownership arrangements, and trust provisions. With Willful, you get unlimited free updates for life. So you can always be confident that your plan is up to date.
Adding joint owners without clear intent: Adding someone as a joint owner for convenience, without documenting your intentions, can lead to confusion, family conflict or unintended tax consequences. Make sure it’s clear whether joint ownership represents a true gift or just an administrative shortcut.
Only focusing on probate fees: Saving on probate is helpful, but it shouldn’t come at the expense of bigger costs down the road. Rushing to transfer assets might trigger capital gains taxes or other expenses that end up costing more than probate would have.
The key is maintaining a balanced approach that considers all aspects of your estate plan, not just probate avoidance.
Planning Ahead to Protect Your Estate
Avoiding probate isn't just about saving money—it's about protecting your loved ones during a difficult time. By implementing these strategies now, you ensure your assets transfer smoothly to your beneficiaries without unnecessary delays, costs, or complications.
The most effective approach often combines multiple strategies: joint ownership for your home, beneficiary designations for retirement accounts, and possibly a trust for more complex assets. The key is starting early and keeping your plan current as your life changes.
Remember, estate planning isn't a one-time task. Review your plan regularly, especially after major life events, and don't hesitate to seek professional guidance when needed. Your future self—and your loved ones—will thank you for taking these important steps today.
Ready to protect your family's future? Start your estate planning journey with Willful today. Our guided platform makes it easy to create a comprehensive will and develop strategies to avoid probate, giving you peace of mind that your wishes will be carried out as intended.
