PROBATE – BONDS – OUT OF PROVINCE PERSONAL REPRESENTATIVE

When you appoint a person in your will to be your Personal Representative (aka “PR”, Executor or Trustee), and that person resides outside of the Province of Alberta, your PR may have to obtain a bond as security before a grant of probate can be issued. See Section 45 of the Estate Administration Act and sections 28 – 31 of the Surrogate Rules.

A bond is a form of security that can be purchased from an Insurance Company, to ensure that the PR acts in good faith in the administration of your estate, and that the creditors and beneficiaries of the estate will be paid before the PR leaves the Province. The bond will be for the full value of the estate, and the cost is normally paid for from the estate. The cost of the bond will depend on a number of factors including the personal credit score of the PR, and the overall value of the estate assets.

Section 29 of the Rules allows the PR to apply to court to waive the requirement of the bond. The Court will generally grant a waiver when there is evidence that the beneficiaries agree that the bond should be waived, and that the estate assets are more than sufficient to satisfy the debts of the estate. We also include the following clause in our wills if it is the Testator’s intention that the PR not be obliged to obtain a bond:

I direct that no Trustee wherever resident, or domiciled shall be required to give any bond or security for the administration of my will in any part of Canada or any foreign jurisdiction.

Another way to avoid the requirement of a bond is to appoint co-executors where at least on them lives in the Province of Alberta. If you are unable to think of an Albertan that could act as your PR, you may instead appoint a Trust Company.

Please contact us if you have any questions about bonds.

 

 

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Peter Robinson (56 Posts)

Peter G. Robinson is an accomplished and skilled general practice lawyer in Calgary, Alberta. Over his 20 year career, Peter has carved out his niche in Residential Real Estate, Wills & Estate Planning, and Probate Applications.

Uniquely available to his clients, Peter is a calm and patient communicator who easily puts his clients at ease with straight-forward explanations of legal concepts. Blogging is his latest venture to cultivate awareness of NW Calgary Law, a law firm where he is the hands-on leader of an enthusiastic team dedicated to prompt and efficient service.

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The content contained in these blogs is intended to provide information about the subject matter and is not intended as legal advice.

If you would like further information or advice on any of the subjects discussed in this blog post, please contact the author at NW Calgary Law at 403.265.3010 or probinson@nwcalgarylaw.com.


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