What Assets Require Probate in New Brunswick?

One of the most consequential — and most frequently misunderstood — tasks an executor faces is correctly identifying which assets belong in the probate estate and which do not. Getting this wrong in either direction costs real money: include too much and you overpay probate tax; exclude assets that belong in the estate and you risk tax penalties, court corrections, and potentially personal liability.

The Core Distinction: Probate Assets vs. Non-Probate Assets

Assets are classified by how they are held and whether they have a direct mechanism for passing to another person without court involvement.

Assets That Pass Outside the Probate Estate

Joint tenancy with right of survivorship: Property held jointly — a home owned as joint tenants, a joint bank account — passes automatically to the surviving owner by operation of law at the moment of death. No court order is required. These assets do not form part of the probate estate.

Life insurance with named beneficiaries: Proceeds go directly to the named beneficiary and are entirely outside the estate. The only exception is when the estate itself is named as the beneficiary — in that case, the proceeds do flow through the estate and are subject to probate.

RRSPs and RRIFs with named beneficiaries: The balance passes directly to the named beneficiary (or surviving spouse in a spousal RRSP rollover). If the estate is named as beneficiary — or if there is no named beneficiary because the account was set up informally — the entire RRSP balance collapses onto the deceased's terminal T1 tax return and becomes a probate asset.

TFSAs with named successor holders or beneficiaries: A TFSA with a named successor holder or beneficiary passes directly outside the estate. Without a designated successor or beneficiary, the account value becomes part of the estate.

Pension plans with named beneficiaries: Similar treatment — named beneficiaries receive proceeds directly, bypassing the estate.

Assets held in a valid trust: Property placed in an inter vivos (living) trust during the deceased's lifetime is owned by the trust, not the individual, and does not form part of the estate.

Real property located outside New Brunswick: Property in other provinces or countries is excluded from the New Brunswick probate estate valuation (though it may require ancillary probate proceedings in that other jurisdiction).

Assets That Do Require Probate

Generally, any asset held solely in the deceased's name, with no beneficiary designation and no survivorship mechanism, is a probate asset:

• Real property (land, home, cottage, commercial building) solely in the deceased's name
• Bank accounts held solely in the deceased's name
• Investment accounts without named beneficiaries
• Vehicles and personal property of significant value
• Business interests solely owned by the deceased
• RRSPs or TFSAs where the estate is the named beneficiary, or where no beneficiary was designated

The $25,000 Small Estate Threshold (2026 Amendment)

Before assuming you need to file a formal probate application, check the total value of all probate assets. The 2026 Bill 30 amendments raised New Brunswick's small estate threshold from $3,000 to $25,000. For estates where all assets solely in the deceased's name total $25,000 or less, the Public Trustee of New Brunswick has statutory authority to administer the estate or facilitate the release of those assets to a verified executor without a formal court order.

This is a significant pathway for modest estates — particularly those where the deceased had a small bank account, a used vehicle, and personal effects but no real property. It eliminates the formal probate process, the court application fees, and weeks of waiting for a grant.

The Public Trustee can be contacted at the regional office level. You will need to provide proof of your identity, your relationship to the deceased, evidence of your entitlement to act, and documentation of the assets.

How to Value the Estate for Probate Tax Purposes

The Probate Court Act (Section 56) requires that a statement of the total value of all property belonging to the deceased at the time of death be verified by oath and delivered to the court before any letters can be granted. This valuation is what determines your probate tax obligation.

What to include in the estate valuation:

• The date-of-death fair market value of all probate assets (see above)
• Real property: use a professional appraisal or, if a full appraisal is not yet available, the most recent assessed value as a starting figure — but note that market value and assessed value often differ substantially
• Financial accounts: the balance on the date of death (obtainable from the institution)
• Vehicles: book value (Canadian Black Book or equivalent)
• Investments: the value on the date of death as shown on the account statement
• Personal effects and household contents: a reasonable estimate of fair market value

What to exclude:

• All non-probate assets described above
• Real property outside New Brunswick
• Any debt obligations (mortgages, liens, loans) are not deducted from the gross estate value for probate tax purposes — probate tax is levied on the gross value, not the net

This last point surprises many executors. If the deceased owned a home worth $400,000 with a $200,000 mortgage, the full $400,000 is included in the probate estate valuation for tax purposes — not the $200,000 net equity.

What Happens If New Assets Are Discovered After the Grant

If the probate tax was calculated based on an incomplete inventory and you subsequently discover additional assets — a forgotten bank account, an undisclosed investment — you will need to file a supplementary affidavit with the court correcting the estate valuation and paying additional probate tax. This is not a crisis, but it does add time and administrative steps.

It is far better to be thorough in the initial inventory. Check every financial institution the deceased used, review their last three years of tax returns to identify all income sources, and look through their correspondence for account statements.

The New Brunswick Probate Process Guide includes an estate inventory worksheet, a step-by-step valuation framework for each asset class, and a probate vs. non-probate asset classification checklist — so you can sort the estate correctly before you ever file with the court.

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