Probate Law
Probate, executor, and probate taxes are unfamiliar to many of us who have never experienced death in the family. But sooner or later it will come and we would have to get familiar with the terms.
Here, you can find everything the legal terms you need to know when a family member dies in Ontario.
Probate
- What Is Probate (Definition)?
- Probate Taxes In Ontario
- What is Estate Information Return?
- Legal Cost for Obtaining a Certificate of Appointment
- What is my “Estate”?
- Letters of Probate
- I do not know if there is a will, what do I do?
- Action Plan
What is Probate?
When someone dies owning an asset (bank account, property, vehicle, etc.) by themselves, in order to transfer the ownership or title of that asset, you must go through a process.
Probate In Ontario
Probate in Ontario, or probate administration, is the process for obtaining the legal authority to act on behalf of the estate, collecting the assets, paying the debts, and distributing the assets properly.
When a person applies to the court to be the Executor, they obtain a Certificate of Appointment. This certificate is what grants the legal authority for the Executor to perform all the duties needed. This used to be called “Letters of Probate.”
The Executor or “Estate Trustee” is the named person who follows the will and distributes the estate. If there is no Last Will and Testament, then the Executor will follow the rules under the Ontario Succession Law Reform Act.”
How long does probate take in Ontario?
Right now the courts are experiencing a backlog in processing the Applications for a Certificate of Appointment of Estate Trustee (Executor). We are currently seeing process times up to 12-14 weeks at some local courts. Overall, it typically takes one year to probate an estate. If there is litigation, trusts or other complicated issues, it could take years.
What Assets Do Not Require Probate?
- Jointly owned assets with a right of survivorship (JTWROS)
- RRSPs, RRIFs, TFSAs with a named beneficiary other than ‘Estate’
- Insurance proceeds paid to a named beneficiary other than ‘Estate’
- Real estate owned outside of Ontario
- Gifts made during your life
- Assets in a trust created during your lifetime (inter vivos trusts).
What is a Certificate of Appointment of Estate Trustee?
A Certificate of Appointment of Estate Trustee is a document issued by the court that appoints someone as the executor and gives them the authority to manage and distribute the estate of a person who either died with a Last Will and Testament or who died intestate (without a will).
The Certificate of Appointment proves the authority of the Executor to administer the provisions of the deceased’s will or if there is no will, as directed by the Ontario Succession Law Reform Act lists who may apply to become the Executor of the estate as well as who the heirs of law would be.
Probate Tax and Fees In Ontario
Do I have to pay a tax to probate? I thought there was no “death tax”?
While there is no “death tax” in Ontario, you do have to pay an “Estate Administration Tax” (use to be called a Probate Fee) to the Ministry of Finance.
This tax is calculated based on the total value of all assets owned by the deceased at the time of death that will go through the probate process. It is about 1.5% of the value of the estate. You can find a calculator here:
This fee is payable to the Ministry of Finance at the time you submit your Application of a Certificate of Appointment of Estate Trustee.
Do I have to file taxes for the deceased?
Yes! The Executor must file two returns on behalf of the deceased. A return reflecting the time period during the year the person was alive, and then a second final return for the remaining of the year.
Executors should seek the advice of an accountant who is familiar with processing terminal returns. Executors should also request a Clearance Certificate from the CRA to confirm that all assessments are final.
Until the receipt of this CRA clearance, it is suggested that the final distribution of the estate not be made to protect the estate in case there is an amount due.
What do I do with the car? Who do I contact?
- Cancel the deceased’s driver’s license with Service Ontario
- Cancel the car insurance: Here is a link to help you find contact information for car insurance companies.
- Cancel CAA: Here is a link to help you contact CAA after someone dies.
- When someone dies owning a car, it can be transferred by visiting Service Ontario. You will need either the Certificate of Appointment and a copy of the will, or a letter from your lawyer stating the probate was not required. We are familiar with this process and can help provide you with this letter. Contact us at Amy MacAlpine, Partner Lawyer of Wills & Estates.
- Here is a useful link from Service Ontario for more information:
What is this Estate Information Return?
Executors beware! If you go through the probate process and have been issued a Certificate of appointment any time after January 1, 2015, you are subject to new reporting rules.
The Estate Trustee or Executor must file an Estate Information Return to the Ontario Ministry of Finance within 90 calendar days of the issued Certificate of Appointment. This is a detailed inventory reflecting everything a person owned at death and the value of those assets.
There are heavy penalties and a lifetime undertaking to report any changes in the estate value. In 2016, we are starting to see the first of audits and are waiting to see how penalties are actually served.
The Registrar has reported that the amount of administration tax collected has already tripled since the rule has been implemented. You can bet that this requirement is not going anywhere!
Legal Cost for Obtaining a Certificate of Appointment
Certificate of Appointment of Estate Trustee with a Will applications starts at $3500, plus disbursements and HST. Costs for legal additional counsel, support and/or administration services are determined on a case by case basis.
Probate Lawyer Cost
The costs to hire a probate lawyer for some services, such as for obtaining the Certificate of Appointment, can be charged to the estate. The Executor does not have to personally pay for this service.
**All pricing is reviewed and quoted with the client prior to being retained
What is my “Estate”?
Your “estate” consists of all the things that you own by yourself at death. Your car, bank accounts, clothes, jewelry, business interest, etc. If you own it, it is part of your estate. Joint accounts and beneficiary designation accounts such as TFSA or life insurance are NOT part of your estate for probate purposes.
How does my estate (assets) get transferred after I die?
Your assets that you own by yourself, can be transferred in two ways: either in accordance with a Last Will and Testament that you leave prior to your death, which states exactly who you want to have what, or if you die “intestate” (without a Last Will and Testament) the Ontario Succession Law Reform Act dictates beneficiaries your property will be transferred to.
Read more about dying without a Will.
Letter of Probate
In order to give or transfer your estate assets to a beneficiary, the Executor or Estate Trustee (the person in charge) has to be named, appointed and provided the official authority to do so. This appointment is called a Certificate of Appointment of Estate Trustee With or Without a Will. This formerly was referred to as Letter of Probate.
See below for information on how to transfer a car, or transfer title to real estate property.
I do not know if there is a will, what do I do?
- If you are not sure whether the person who died had a Last Will and Testament or not, you can contact the estates department of the local Superior court in the community where the deceased lived to see if a will was registered. For court locations and contact information, you can use the following link:
- You can also list an advertisement on a new online website Notice Connect. Among other services, they can publish a notice to lawyers, requesting that any lawyer known to have a prepared and/or stored a will for the deceased, contacts you.
- Ask, Ask, Ask!! Ask people like the deceased’s accountant, life insurance broker, financial broker, lawyer, and closest friend, as to whether they know of any Will the person may have left.
Do I need the original Will?
Yes! The Application for Certificate of Appointment with a Will requires the submission of the original will along with an Affidavit of Execution.
The Affidavit of Execution is a sworn statement from one of the witnesses, stating the formal requirements were followed.
If the original will can not be found or the Affidavit of Execution is missing, there are some things you can do to either attest to the signature or contact the witnesses. Your probate lawyer should be able to help you with these alternatives.
Who is in charge of my estate?
The Executor or the Estate Trustee is the person who is in charge of transferring (giving) your estate assets to the intended beneficiary. The Executor has many duties including but not limited to arranging the funeral, collecting all your assets, paying off your debts, preparing and paying your taxes, and distributing what is left.
Hummingbird Lawyers LLP services the Greater Toronto area, York Region including Vaughan, Richmond Hill, Aurora, Newmarket, Thornhill, Markham, North York, and surrounding areas. Hummingbird Lawyers LLP is a full-service firm offering legal support with real estate lawyers, corporate lawyers, civil litigation, family law, estates, and wills.
We have two offices for your convenience. Providing qualified, skilled and experienced lawyers in Toronto and lawyers in Vaughan, we are committed to giving our clients the convenience, expertise and guidance they need.
Probate Lawyers
If you are looking for a probate lawyer require more information please do not hesitate to contact Amy MacAlpine, Partner Lawyer of Wills & Estates.
If you require more information please do not hesitate to contact Amy MacAlpine, a wills & estates lawyer.
Action Plan
3 Steps to Get Going
Action Plan
3 Steps to Get Going- Review the information on this page.
- Contact Hummingbird Lawyers – 905 731 1911 | info@hummingbirdlaw.com or Amy MacAlpine at 905 731 1911 | info@hummingbirdlaw.com
- Know that we got you covered.
Additional Resources
My father died and had a will and left me his car that he owes 3000 dollars on i said I would take over the loan but the government stepped in and seazed all assets saying he owed back taxes will I get the car still??
My father died and had a will and left me his car that he owes 3000 dollars on i said I would take over the loan but the government stepped in and seazed all assets saying he owed back taxes will I get the car still?? Also he left me is cpp will I get this too still?
Anthony,
Thanks for your message.
To get the best answer possible, it would be best to reach out to our Wills and Estates lawyers.
by phone: 905.731.1911
or email: info@hummingbirdlaw.com
If my wife and I should both die at the same time, ie. car accident, what happens to our estate. We have wills declaring our daughters are joint executors and everything is to be dived equally.
We DO NOT want probate or pay probate tax.
Greg,
To get the best answer possible, it would be best to reach out to our Wills and Estates lawyers.
by phone: 905.731.1911
or email: info@hummingbirdlaw.com
Hello. My mother in law inherited 1/5th of a piece of property according to the will. 17 years ago her aunt died. The property when doing a title search indicates it is still in her uncles name. Property taxes are in the estate of both of them with a c/o one of the estate trustees which everyone pays a portion of, with no receipt.
How would one go about getting their name on the title of the property ?
Thanks so much.
In Ontario, where there is a will the transfer to beneficiaries generally takes place at the end of the administration of the estate. If your mother-in-law’s aunt’s Estate was never administered, it is possible that there may be a right to have the property vest in the beneficiaries because 3 years passed. To provide specific advice on your situation we would need to see the Will and to understand better on what took place with the Estate of the aunt. If you would like to schedule a consultation, please let me know.
Ioulia
My mother passed away and there was no will, no executor but some money remaining in a RRIF with me as the beneficiary. And a tiny life insurance policy that paid for her funeral etc. Apparently she owes over 5000 dollar to Revenue Canada for the year. Is this my responsibility to pay??? She had a common law who has now also passed away and I am the only family member remaining.
She passed in Oct. 2020 and the RRIF was transferred to me in December. The taxes I’m referring to are for 2020. Her common law partner passed in February 2021 but never took responsibility for any of the costs or arrangements etc.
Hello Tracy,
Please accept our condolences on the anniversary of your loss of your mother.
In Ontario, a beneficiary does not take on personally the debts of the deceased. If you became an Estate Trustee for the Estate of your mother, as an Estate Trustee you have a responsibility to pay her debts, but again it is not a personal responsibility. Often a financial institution holds some funds back to pay the taxes that become due on a RRIF or an RRSP account before it is paid out to a beneficiary. You can find out if that was the case.
If you wish to speak specifically about your situation, don’t hesitate to contact us directly to book a consultation.
Best regards,
Ioulia
My father owned 1/6th share of a hunting camp. His will was done Sept /12. Listing his share is left to us 3 daughters. There is a piece of hand written paper dated Nov/12 in the camp file, signed by all shareholders that shares can not be willed to individuals. Does this over ride his legal will. What do we do
Hello and thank you for your inquiry.
Please accept our condolences for your loss. To be able to properly provide our opinion with respect to the documents you referenced in your inquiry, we would need to be able to review the documents. That said, in Ontario, if the deceased held shares at the time of his/her death in a privately held corporation it is possible that his rights are restricted if there is a valid shareholders agreement. A valid shareholders agreement of a privately held corporate would be binding on the Estate. If your father died in Ontario, and the ‘hunting camp’, is a privately held corporation in Ontario, it may be, but only if the paper you refer to is a valid shareholders’ agreement, that your father was restricted as to what he can do with his shares.
If you would like to schedule a consultation, or to discuss our process, do not hesitate to let us know.
Best regards,
Ioulia