Estate Property: Probate vs Non‑Probate Property in Alberta
When someone dies, all property must be classified as either part of the estate or passing outside it. This distinction determines whether an asset is subject to probate and forms part of the executor’s responsibilities. Alberta’s Estate Administration Act and Wills and Succession Act provide guidance, but understanding common categories can help executors and families manage assets properly.
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What Is Probate Property?
Probate property includes assets that belong solely to the deceased and must be collected and distributed by the personal representative. Examples of probate property are:
Real estate held solely in the deceased’s name. Land, houses, and condominiums require probate to transfer title.
Bank accounts and investments without joint holders or beneficiary designations.
Business interests such as shares in private corporations, partnership interests, or sole proprietorships.
Vehicles, mobile homes and recreational property registered solely in the deceased’s name.
Registered plans (RRSPs, RRIFs, TFSAs) and life insurance policies where the estate is named as beneficiary or there is no beneficiary designation.
Personal possessions like jewelery, art, furniture, and digital assets.
Estate inventory may include real property, stocks, bonds, life insurance proceeds, pensions, RRSPs, RRIFs, annuities, bank accounts, vehicles, mobile homes, personal possessions, foreign assets and debts. Executors must identify each asset, obtain valuations, and include them in the GA2 inventory
What Is Non‑Probate Property?
Non‑probate property passes automatically to another person upon death and does not form part of the estate. While the executor often provides proof of death, they do not control the transfer. Common examples include:
Jointly held property with right of survivorship. When property (such as a home or bank account) is owned jointly, the survivor inherits the deceased’s share automatically.
Assets with designated beneficiaries. RRSPs, RRIFs, TFSAs, pensions and life insurance policies with a named beneficiary transfer directly to that person.
Property held in trust. Trust assets are governed by the trust deed and are not part of the estate.
Designated plan gifts or payable‑on‑death accounts. Some financial institutions allow payable‑on‑death designations; these assets transfer outside the estate.
It is important to note that if a beneficiary has predeceased the owner or the designation is invalid, the asset may fall back into the estate and require probate. Executors should confirm designations and update them if necessary.
Why the Distinction Matters
Classifying assets correctly affects the legal process and timing of transfers. Probate property:
Must be included in the GA2 inventory and may require valuations.
Is subject to probate fees based on the net value.
Must be managed by the personal representative, who is responsible for preserving and accounting for the asset until distribution.
Non‑probate property:
Bypasses probate, saving time and court fees.
Is not subject to the executor’s control (unless they are also the surviving joint tenant or beneficiary).
Still needs to be reported for tax purposes and may affect equalization among beneficiaries.
Handling Mixed Property
Many estates contain both probate and non‑probate property. Executors should:
Identify all assets and their ownership. Ask for account statements, titles and beneficiary designations.
Document non‑probate transfers. Keep proof of payment or transfer to ensure transparency with beneficiaries and tax authorities.
Consider equalizing distributions. If non‑probate assets go to specific beneficiaries (for example, a life insurance policy to one child), the executor may need to adjust probate distributions to treat beneficiaries fairly.
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Disclaimer: This guide provides general information about estate planning in Alberta and should not be considered legal advice. Every situation is unique, and you should consult with a qualified estate planning lawyer to discuss your specific circumstances. Laws and regulations can change, so ensure you’re working with current information when making estate planning decisions.
Unsure whether an asset is part of the estate?
Frequently Asked Questions: Probate vs Non‑Probate Property
Is a jointly owned house part of the estate?
Property held in joint tenancy passes automatically to the surviving joint tenant and is not part of the estate.
Do beneficiary‑designated RRSPs need probate?
No. RRSPs with a valid beneficiary designation pass directly to the beneficiary and bypass probate.
What happens if a designated beneficiary dies before the owner?
Rarely. Personal property such as jewellery and household items are usually probate assets unless specifically gifted in a valid trust.
Why must I list non‑probate assets in the inventory?
The personal representative must account for all assets the deceased owned or controlled, even if they are not part of the estate. This ensures transparency and helps verify tax and equalization issues.
What if there’s no will?
Someone with priority can apply for a Grant of Administration and will have similar duties, but authority starts after the court issues the grant.
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