Does a Jointly Owned House Go Through Probate in Ontario?
Often not, but it depends on how the home is held. Joint tenancy carries a right of survivorship, and Ontario's Estate Administration Tax guidance excludes jointly owned assets that pass automatically to the other owner from the estate value.
A joint house can still be pulled into the estate. If a parent adds an adult child to title for no payment, a presumption arises that the child holds the property on resulting trust for the parent, which means for the estate after death. The child must prove the parent's contrary intention at the time of the transfer. For a married spouse who held the matrimonial home jointly with someone other than their spouse, the joint tenancy is deemed severed immediately before death and the share goes into the estate. Owners who die together are generally treated as tenants in common, so each share goes through that person's own estate.
Where the house is in the estate, probate is normally required where the deceased owned real property. Estate Administration Tax is $15 for every $1,000 of estate value above $50,000, with real estate counted at its value at the date of death less encumbrances.
Key takeaways
- Jointly owned assets that pass automatically to the surviving owner are excluded from the estate value for Estate Administration Tax.
- A parent's gratuitous transfer into joint names with an adult child raises a presumption that the child holds the property for the estate.
- A married spouse's joint tenancy with someone other than their spouse in the matrimonial home is deemed severed immediately before death.
- How the home is actually held decides the answer, so a lawyer can confirm before you assume probate is avoided.