In Ontario, when someone dies without a will (intestate), the probate fees (Estate Administration Tax) are paid from the deceased person's estate assets, not by individuals personally. The court-appointed Estate Trustee (administrator) ensures these fees are paid to the Minister of Finance before distributing the remaining assets to beneficiaries.
Settings. “Probate fees” or 'probate tax' must be paid to the government of Ontario when an estate is probated. Learn more about probate basics here. EAT is paid from the estate and is not borne by the trustee/executor.
When a person does not have a valid will when they die, it is called an intestacy. When this happens, Ontario's Succession Law Reform Act sets out how the estate is distributed. In general, when a person dies without a will, the people who can inherit their estate include their spouse and closest next-of-kin.
How to avoid probate in Ontario
Use our updated for 2025 Ontario probate fees calculator to estimate your official probate costs accurately. For estates valued up to $50,000, there is no probate fee. For estates valued over $50,000, the probate fee is $15 per $1,000 (1.5%) on the portion exceeding $50,000.
The complete probate process in Ontario typically takes 8 to 12 months, not the commonly cited 6 to 8 weeks. The process involves two main phases: the official court process (6-8 weeks) and full estate settlement (6-10 months).
Probate is required for most estates in Ontario. In a few, relatively rare cases, the requirement to probate is waived or avoided by pre-death planning.
Assets that are not subject to probate in Ontario include:
Assets that were held jointly (there are exceptions) CPP death benefit. RPPs, RRSPs, RRIFs, and TFSAs with a beneficiary designation or beneficiary declaration. RDSPs to which the deceased subscribed to but was not a beneficiary.
How to reduce probate fees
Probate isn't always needed in Ontario, and many estates can be settled without going through the court process. For example, jointly owned assets often pass directly to a surviving spouse, bypassing probate entirely.
When a person dies without a will, the provincial government gets to decide who gets the money in your bank account. Provincial governments will often prioritize immediate family members or blood relatives of the deceased person, which can leave common-law partners with nothing.
The three year rule affects certain gifts and transfers made within three years of death. Here's a straightforward breakdown: If you transfer certain assets or give up control over them within three years of your death, those assets might be included in your estate for tax purposes.
If the value of an estate does not exceed $25,000, a probate application may not be required, but it depends on the type of assets the deceased person owned when they died. For example, if they own a vehicle, bank account, or certain types of investments, a probate application may still be needed for a small estate.
Which Assets Are Typically Included in Probate? Assets solely in the deceased's name are generally subject to probate. This includes things like: Bank accounts without a designated beneficiary.
Attorney fees for probate proceedings, accountant fees for preparing tax returns, executor fees, property management costs, and appraisal fees all qualify. These deductions appear on line 15 of Form 1041, and importantly, they're not subject to that frustrating 2% AGI limitation that individual returns face.
5 Reasons to Avoid Probate — and How to Do It
You can apply for probate yourself online or by post. This can be cheaper than paying a probate practitioner (such as a solicitor) to apply for you.
When a loved one passes, the last thing on most people's minds is taxes, but they do play an important role in settling the estate. In Canada, there is no inheritance tax. You don't have to pay taxes on money you inherit, and you don't have to report it as income.
By distributing assets like cash, property, or personal belongings to your loved ones while you're still alive, you ensure those assets won't be included in your estate. This means they won't be subject to probate fees. You'll also benefit from experiencing the impact your inheritance has on your loved ones.
Assets exempt from probate typically include those with named beneficiaries (life insurance, retirement accounts), jointly owned property with rights of survivorship, assets held in a living trust, and sometimes specific items like homestead property or a certain value of vehicles/household goods, depending on state law, allowing direct transfer to heirs without court involvement.
The first in line for inheritance, when someone dies without a will (intestate), is typically the surviving spouse, followed by the deceased's children; if none, then the deceased's parents, then siblings, and then more distant relatives like grandparents or aunts/uncles, as determined by state laws (intestate succession).
Is it possible to settle an estate without undergoing probate in Canada? Yes, settling an estate without probate is possible, especially if the assets are jointly held or designated to beneficiaries. Proper estate planning and using tools like wills and beneficiary designations help avoid probate in certain situations.
If there is no will, who can be the estate trustee? If there is no executor (estate trustee), Ontario's laws dictates that the next of kin and spouse will be next in line to apply to be a trustee in Ontario. But if no one wants to take on the role to be an executor, the Ontario courts will appoint a public trustee.