Can a Creditor Take a Jointly Owned Home After One Owner Dies in Ontario?

It depends on the facts, and the answer is not a simple yes or no. Property that passes by survivorship goes straight to the surviving owner, not into the estate. Whether a particular debt or unpaid tax can reach the home is worth confirming with a lawyer, because it turns on the type of claim and how the property was held.

Some claims can still reach joint assets. For a dependant's support claim, property held by the deceased and another as joint tenants is deemed part of the net estate. For joint deposits, only the part that belonged to the deceased is counted. Section 72 also does not affect creditors' rights in any transaction where they have rights.

Tax is a separate matter. A deceased person is considered to have sold their capital property just before death, even if it passes by survivorship. A transfer to a surviving spouse or common-law partner who is resident in Canada can roll over without immediate gain if it is locked in for them within 36 months of death. A joint asset the survivor holds on resulting trust for the estate does not escape estate administration tax.