Is there a tax on probate in Ontario, and does intestacy affect it?
Yes. Ontario charges an Estate Administration Tax (sometimes called "probate fees") calculated on the value of the estate. The tax applies when an estate seeks a Certificate of Appointment of Estate Trustee — whether with a will (probate) or without a will (administration on intestacy). The rate is set by legislation and applies on estates above a small exemption threshold.
The tax is calculated on the value of assets that pass through the estate. Assets that pass outside the estate — such as jointly held property, registered accounts with named beneficiaries, and life insurance with a named beneficiary — are generally not included in the taxable value.
Dying intestate does not avoid Estate Administration Tax. In fact, the administration process for an intestate estate can be more complex and may result in more assets being subject to the tax (for example, if proper estate planning would have routed assets outside the estate). Estate planning strategies to minimize this tax are available but should be discussed with a lawyer.
Key takeaways
- Ontario charges an Estate Administration Tax (probate fee) on assets passing through the estate.
- The tax applies to both testate and intestate estates that require a court certificate.
- Assets passing outside the estate (joint ownership, named beneficiary accounts) are not subject to it.
- Intestacy does not reduce the tax — proper planning is the key to minimizing it.