It Will Be Easier and Cheaper to Administer Small Estate from April 1st, 2021

It will be easier and cheaper to administer small estates commencing April 1, 2021.

Any estate of $ 150,000 or less will be able to be processed with much less paperwork and expense and will be quicker.

Assets that are jointly owned or on which there is a named beneficiary do not and did not require probate ( recognition by the court ) of a will or the naming of an estate trustee to administer the estate if there is no will.

Other assets may pass without a will but savings or investments, could generally not be accessed because the financial institution required a Certificate of Appointment – a document issued by the court naming an estate trustee unless the amounts were very small. Financial institutions want to ensure that they are giving funds to the right person.

The application to the court will be simpler. Some supporting documents will not be required, such as an affidavit of service ( proof that a document has been delivered to a person ). There will be written guides to assist individuals in completing the forms. Where there is no will, often the court requires the posting of a bond, a guarantee that the estate trustee will honestly administer the estate. A court can waive the necessity of a bond if the court is persuaded that the beneficiaries are sufficiently protected or if they all agree to waive the bond. Obtaining a bond is costly, not every insurance company gives them and a court order is required to surrender the bond. In small estates, it will no longer be required that a bond be posted.

The changes to the law will, however, preserve protection for minors and vulnerable people. With more and more documents being filed on-line in courts it will also eliminate waiting in line, trying to figure out where is the proper place to go and getting quick answers to questions.