Regardless of the best estate plans, often administration is required. There are a few costs involved. Please see below for a detailed explanation of these costs.
1. Legal fees
Often these two fees are confused and together they can often be very expensive. Therefore, many administrators/executors simply avoid administering the estate or attempt to handle it on their own rather than hiring a lawyer.
The legal fees are set by Rule 16-58, as follows (2016): $1,500 for the first 100,000 plus 1% for the first 500,000, 0.5% for 500,001 to 1,000,000, and .025% for any sum over $1,000,000. This means that with an estate of $100,000, the fees are $2,500; with an estate of $1,500,000, the fees are $21,500.
In some situations, these fees may be justified. Examples of these types of situations include when litigation is occurring, when beneficiaries are difficult to locate, foreign jurisdictions are involved, or similar situations. However, the vast majority of estates can usually be administered without these issues.
2. Court fees
With respect to the court fees or rather the probate fees. Currently (2016) in Saskatchewan they are set at 0.07%, or $700 per $100,000. While significant, these fees are not as serious as many people think: for instance, on an estate of $250,000, the fees are $1,750.
I have had more than one client believe that the two fees are necessary, which leads many people to avoid probate/administration (particularly in Saskatchewan, where many persons pass-away “land-rich” but money poor – an estate may have to sell land simply to pay these fees).
3. Probate fees
The probate fees can be reduced significantly if a good estate plan is in place: the fees are only on property passing through the estate. There are ways of reducing his amount. But the best estate plans often don’t avoid probate entirely. Some property may need to pass through probate, requiring administration of the estate.
Often looking at fees of several thousands of dollars, administrators face the burden of administering an estate by themselves or, sometimes, avoiding the administration of the estate. This is not a good situation for anyone involved: not for the beneficiaries nor for the executor/administrator.
4. Our Fees
The firm’s Estates Retainer is designed to address this issue. We offer the following Retainers:
Basic Estate Administration for a fee of $950: this will the cover the costs and fees related to ordinary duties. This does not include probate fees, costs related to extra-ordinary duties, and certain third party costs.
Extra-Ordinary Estate Retainer: this retainer will address the rare situations when the administration of the estate will require extensive work.
The first retainer will cover most estates and represents significant savings: for instance, on an estate of $250,000 that would represent a savings of $3,050 in legal fees.
Available home visits. Meetings can also be arranged off-site. Whatever is most convenient for you. So if you live in Lloydminster or Saskatoon and you want to hire us, you can, and we will schedule a meeting in your community
Subject to Terms & Conditions.