What legal fees does an estate typically pay in Ontario?
An estate in Ontario may incur legal fees at several stages. The most common are: legal fees to apply for a certificate of appointment of estate trustee (probate), fees for preparing and filing the deceased's final income tax return and estate T3 returns (often handled by an accountant), fees for preparing the estate accounts, and fees for any disputes or court proceedings.
Legal fees for obtaining probate vary by estate complexity, the value of the estate, and the law firm retained. They are generally charged by the hour or as a flat fee and can range from a few hundred dollars for a straightforward small estate to several thousand dollars for complex situations. These fees are a legitimate estate expense paid before distribution to beneficiaries.
The estate administration tax paid to the province is separate from and in addition to legal fees. If the will is contested or beneficiaries dispute the executor's conduct, litigation costs can become substantial.
Planning ahead — keeping a clear, current will and organizing your records — reduces the work (and cost) of administration after death.
Key takeaways
- Legal fees, estate administration tax, and accounting fees are all separate costs
- Fees vary widely based on estate complexity and whether disputes arise
- All legitimate administration costs are paid from the estate before distribution
- A well-organized estate with a current will reduces administration costs