Probate is the legal process that confirms a will is valid and gives someone the authority to carry out the wishes outlined in the will after someone has passed away.Â
In short, probate gives legal permission to an executor to settle the estate, including:
- Paying off any debts
- Collecting and managing assetsÂ
- Distributing what's left to the people named in the will
Even with a clear and simple estate, probate is often a necessary step.
Despite its importance, probate can be confusing and intimidating, and can feel overwhelming when you’re grieving or helping a loved one settle an estate.Â
While Manitoba has made the probate process more affordable by eliminating probate fees, that doesn’t mean there are no costs involved.
In this article, we’ll explain what costs still exist even without probate fees and how you can plan ahead to reduce stress and avoid surprises for your loved ones.
The Elimination of Probate Fees in Manitoba
In 2020, Manitoba became the first province to eliminate probate fees entirely.
Before that change, a percentage of the estate’s value was paid to the court as a probate fee, essentially a charge for validating a will. The rationale for eliminating it was simple: these fees added cost without improving service or providing support to grieving families.
Even though Manitoba eliminated probate fees, it’s important to understand that probate still exists and that there are some costs involved in the process.
Remaining Costs in the Probate Process
While you no longer have to pay probate fees in Manitoba, settling an estate still comes with expenses.Â
Here are the key ones to keep in mind:
Legal Fees
Probate may require help from a lawyer, especially for larger or more complex estates. Manitoba sets maximum fees for probate applications under Rule 74.14(6) of the Court of King's Bench Rules:
For example, if an estate is valued at $600,000, the maximum legal fees may work out to:
- The first $100,000: $3,000
- The next $400,000: $5,000
- The final $100,000: $1,000
- Total Legal Fee: $9,000
Remember that these are the maximum allowable fees. Some lawyers may charge less, especially if the estate is straightforward. But it’s important to understand the potential cost.
Court Filing Fees
While the probate fee has been eliminated, there may still be small administrative fees for court applications, like:
- A nominal fee to file the application for probate
- Fees for certified copies of documents
These are typically modest, often under $100 in total.
Executor Compensation
In Manitoba, executors are entitled to reasonable compensation for the work they do managing and settling the estate.
The legislation doesn’t set a rate, but compensation is often calculated as a percentage of the estate, usually between 1% and 5%, depending on the complexity and size of the estate.
Common Misconceptions and Pitfalls
Even though probate fees are no longer charged in Manitoba, many people still misunderstand what that means. Here are some common misconceptions and mistakes:
- "Probate is free now, so I don’t need a will": This is not true. Probate may be fee-free, but without a will, your estate could be tied up in court for months. Without a will, the government (not you) decides who gets what.
- Trying to "avoid probate" with shortcuts: People sometimes add family members to bank accounts or property titles as joint owners to avoid probate. This can lead to legal issues, family disputes, and unexpected taxes.
- Forgetting to update beneficiary designations: Life changes. If you don’t keep your will and registered accounts up to date, assets could end up in the wrong hands or trigger legal challenges.
- Underestimating legal or executor fees: Even without probate fees, there are still other costs involved. If you’re leaving an inheritance, it’s helpful to be clear about how these fees will be paid.
How to avoid these mistakes:
- Create and update your will regularly
- Talk to your executor and beneficiaries
- Get legal advice if your estate is complex
- Use tools that help you plan ahead with clarity
Planning Ahead with Willful
At Willful, we believe estate planning should be accessible, affordable, and easy to understand. It shouldn’t take a law degree or a mountain of paperwork to protect the people you love.
We worked with lawyers in Manitoba to help Manitobans create legal wills and power of attorney documents that are tailored to provincial laws.
Here’s how we make it simple:
- Lawyer-approved documents for Manitoba, reviewed by legal professionals
- Free unlimited updates anytime your life changes
- Step-by-step guidance so you know exactly what to do next
- Digital convenience to complete your estate plan from home in under 20 minutes
Planning your estate is about protecting your loved ones and making your wishes clear. It’s about avoidingÂ
unnecessary stress and expense at a time when your family will need peace of mind.
FAQs
How do I avoid probate fees in Manitoba?
As of November 2020, Manitoba no longer charges probate fees. However, other estate settlement costs still exist. The best way to keep those costs low is to plan ahead with a clear, legal will and regularly updated documents.
Learn more about how to avoid probate
How much does a lawyer charge to probate a will in Manitoba?
Lawyers follow a maximum fee structure:
- 3% on the first $100,000 (minimum $1,500)
- 1.25% on the next $400,000
- 1% on the next $500,000
- 0.5% on anything above $1,000,000
More on legal fees for settling an estate
Do I need a lawyer for probate in Manitoba?
It depends. For simple estates, some people file probate themselves. In more complex cases, hiring a lawyer can help ensure the process is handled correctly and efficiently.
How much does an estate have to be worth to go to probate in Canada?
There’s no single threshold, as it depends on the province and the type of assets. In Manitoba, any estate with real estate or accounts held solely in the deceased’s name usually requires probate.
Final Thoughts
While Manitoba made headlines by eliminating probate fees, probate still matters, and it still comes with costs.
The best way to avoid complications down the road is to plan today.Â
That means having a legal will, choosing an executor you trust, and making sure your documents reflect your current life and wishes.
Avoid costly mistakes. Use Willful to create your will and power of attorney documents affordably online.
And if you’d like to stay updated on changes to estate law and probate rules in Canada, sign up for our newsletter.
Recommended Reading:Â
- How to Avoid Probate in Canada
- Legal Fees for Settling an Estate
- What Is Probate and How Does It Work?
- Willful Pricing Plans
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