Why traditional estate settlement solutions aren’t always the best choice

Until someone close to you has died and you’ve been named their estate executor, you’ve probably not given the process of settling someone’s estate a lot of thought. When the moment does come, you might find yourself frantically searching the internet for how to proceed, or turning to the first lawyer that pops up in your Google searches. Once you realize what the responsibilities of an estate executor actually entail, it’s easy to feel overwhelmed by your fiduciary duties.

Even though the average estate size is around $200,000 in Canada, the upcoming wealth transfer between the Boomer generation and Millennials might change that figure. According to an Ipsos survey from Sun Life Financial, Boomers plan to leave an average of $940,000 to their children. If you’re handling an estate of that size, it can feel impossible to prepare for probate—getting a record of all the assets of the estate is daunting on its own.

Realizing the depth of your duties as an estate executor can prompt you to turn to more well-trodden, traditional solutions such as estate lawyers or trust offices. But, we’re here to tell you that you may want to rethink whether “traditional” estate settlement solutions are the best option. Here’s why:

Option 1: retaining traditional estate experts

If you go the traditional route and retain an estate lawyer to handle the estate settlement process, you’ll end up in a lot of in-person consultation meetings before deciding on someone you like, who has time, and who is specialized in estate law. This won’t only take up a lot of time, it could cost you too—not everyone does free consultations.

Once you’ve decided on a lawyer, they’ll prepare and file the probate application for you. This can cost you up to a couple thousand dollars upfront. And then there’s a lawyer’s hourly fee: That can range from anywhere between $250 to $600. And keep in mind that estates take a significant amount of time and work to settle.

As part of the process, you'll also need to hire the services of an accountant to prepare and file the deceased’s final tax return and an estate tax return to report any earrings the estate may have generated after the date of death. Once again, you’ll probably have to go through various meetings before settling on someone, and then you’ll be looking at fees between $1,500 to $3,000 and up.

At the end of the entire ordeal, you may be looking at several thousand dollars in costs.

The traditional route may come with traditional technology

Using the services of traditional estate experts like probate lawyers can be costly in more ways than one. Traditional services can come with outdated billing models and a lack of technological initiative. In fact, the Canadian Bar Association’s annual State of the Legal Market in Canada Report for 2024 found that only 26% of law firms are using generative AI in their practices. A lack of technological improvement in law firms can leave you working with experts using outdated systems but still paying a pretty penny.

On top of traditional systems there’s also traditional methodologies that can quickly inflate your bill. Trying to get a hold of a lawyer that specializes in estate settlement won’t be easy. Add to that the likelihood of you paying a few hundred dollars per hour for each phone call to see how things are progressing or for you to ask a simple question, and you can see your bill skyrocketing quickly.

Option 2: working with a trust company

Another option is to hire a trust office to assist with the estate settlement and administration process. While this absolves you of having to schedule numerous in-person meetings with lawyers, accountants, and other estate professionals, these services can be expensive.

A trust office can charge up to 3.5% of the total estate value, and they often have minimum fees for their services, sometimes $15,000 or more.

While trust offices offer comprehensive services, you’ll still need to spend time finding a suitable provider and attending numerous consultation meetings. Additionally, with complex probate fees, the overall costs can significantly reduce your loved one’s inheritance.

Executors feel stuck between fulfilling their duties unassisted or retaining expensive services

Estate executors often face a difficult choice: managing overwhelming responsibilities without guidance or paying high fees to lawyers and trust companies to handle the administrative burden on their behalf. However, framing estate administration as a choice between expensive professional help and entirely independent management relies on a questionable assumption: that the average Canadian can't effectively handle estate duties themselves.

While we acknowledge this may often be true, traditional estate settlement services overlook a crucial option - empowering Canadians to confidently manage estate matters on their own. Current solutions offer only two extremes: full-service or no assistance at all. We believe there's a better approach, one that provides Canadians with the confidence and resources to handle their estate responsibilities independently, ensuring they preserve more of what their loved ones intended for them.

ClearEstate offers a better solution

ClearEstate can help you save a significant amount of money while also assisting you during every step of the settlement process. How? With our estate settlement platform and expert guidance, you’re perfectly equipped to handle your role as executor. Here are some of the ways ClearEstate empowers Canadians to administer their loved one’s estate with confidence.

A roster of experts from various backgrounds

We assist more families with their estate settlement needs per month than most lawyers do per year. Our team includes estate experts, accountants, and administrative professionals, making it easy to get all the support you need in one place. With us, professional help is always just a message or virtual call away—no more time-consuming appointments or scheduling headaches. We bring estate expertise directly to you.

Key information at your fingertips

Rather than having to make expensive phone calls to find out the status of your estate, ClearEstate uses an intuitive, all-in-one online platform to manage your loved one’s estate. Our user-friendly dashboard allows executors and beneficiaries to easily follow the administration process as it progresses.

Our online platform also uses a centralized form depository, allowing you to access all the important documents and government applications you need when you need them. You can even fill out certain forms with a single click.

Choose your involvement level

Traditional estate settlement solutions focus on an all-or-nothing approach. At ClearEstate, we believe in giving Canadians the power of choice. Our customers have access to three different service levels for estate administration.

Let’s get started with a free consultation

We empower estate executors by providing everything they need: From our innovative platform to executor checklists and an estate specialist to help guide you, we streamline the entire settlement journey. And if you do get stuck or need more assistance, then we’re only a message away. Think of us as a one-stop shop for all of your estate settlement needs.

We think our dedication to seamless, affordable and fair estate administration is changing the way Canadians are handling their estate matters. But, don’t take our word for it. This is what one our clients had to say about her experience:

“When my mom passed away without leaving a will, I was completely overwhelmed with the process of handling her estate. I knew I needed professional help as I was overwhelmed when trying to navigate the probate process on my own. That's when I discovered ClearEstate.

At first, I was a bit apprehensive about working with any company. I didn't want to involve others or grieve with anyone else as I found the process daunting, but I wasn't sure if I could do it alone and with what little she left behind. However, I was pleasantly surprised by their dedicated team. They took the extra time to explain everything to me in a way that was easy for me to understand, even for someone like me who had no prior knowledge of probate or legal jargon.”

We’ve helped thousands of Canadians over the past five years and are excited to help even more in the future. Want to know more about how we’re giving Canadians more power over their families’ financial legacy? Or want to learn more about our estate settlement pricing options? Get in touch for a free consultation today.