Do I need both an accountant and a lawyer for estate administration in Ontario?
For most estates in Ontario, you will need both a lawyer and an accountant, and their roles are distinct.
A lawyer guides the estate through the legal process: applying for the certificate of appointment (probate) if needed, interpreting the will, assisting with transfers of real property and other assets, ensuring creditors are properly dealt with, and preparing release documents when distributing to beneficiaries. If disputes arise, the lawyer handles them.
An accountant (or tax professional experienced in estates) handles the tax side: filing the deceased's terminal return and any optional separate returns, reporting income on estate T3 returns, advising on elections available to the executor, and applying for the CRA clearance certificate. They may also help calculate the adjusted cost base of assets.
The two professionals often need to coordinate — for example, the timing of asset transfers has tax implications, and the lawyer needs to understand the tax picture before completing distributions. For smaller, simpler estates, costs can be kept manageable by being organized, having clear records, and engaging professionals only for what you actually need.
Key takeaways
- Lawyers handle the legal and court process; accountants handle tax returns
- Both are often needed and should coordinate on timing of distributions
- Their fees are legitimate estate expenses paid before distribution to beneficiaries
- Good recordkeeping by the executor reduces the work (and cost) of both