In this five-part blog, I will discuss what probate is and how probate fees are calculated, which assets are subject to probate and which are not, when it makes sense to avoid probate and how to accomplish that, and when avoiding probate may not be the best strategy and why.
In Ontario, a ‘Certificate of Appointment of Estate Trustee with a Will’ or ‘Probate’ is a document issued by the Court and is often required by financial institutions before an Executor is allowed full control of a deceased person’s bank accounts, investments and real estate.
To obtain probate, various documents must be prepared and submitted to Court along with the original signed Will and the appropriate estate administration tax, popularly referred to as ‘probate fees’. In Ontario, the tax is calculated based on the value of the estate assets subject to ‘probate’ (more on this in future blogs). The amount of any mortgages on real property located in Ontario can be deducted but no other deductions are permitted including credit card balances.
For the first $50,000 of estate value, the tax is $5 per thousand or part of a thousand. For every thousand of value above $50,000, the tax is $15 per thousand or part of a thousand. For example, for an estate valued at $352,500, the fees would be $4,795 ($250 for the first $50,000 plus $4,545 for the remaining $302,500). These fees are payable to the Ontario government and do not include the legal fees and other disbursements for preparation of the court application.
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Blog posts pre-dated December 1, 2015 were originally published under Neff Law Office Professional Corporation.
