What is a bond for an estate trustee in Ontario and when is one required?

A bond is a financial safeguard the court may require from the person applying to manage an estate, protecting the people who are owed something from the estate. In Ontario, one is required when the deceased died without a will, when the applicant was not named as estate trustee in the will, or when the applicant does not live in Ontario, another Canadian province or territory, or a Commonwealth country.

The bond is generally twice the estate's value unless a judge orders otherwise, and a judge can decide on a motion to waive it. Under the Estates Act, a judge may reduce the bond or dispense with it in special circumstances. For a small estate, no bond is required unless a beneficiary is a minor or incapable, subject to the non-resident rule.

If there is no will, a minor or incapable beneficiary, and a small estate, a spouse who files an affidavit asking the court to dispense with the bond may avoid one, but a non-resident applicant still needs it. Bond forms include 74L and 74M. Cost and how to obtain one depend on the provider, so a lawyer can explain the options for your estate.