Do You Need an Appraisal of the House for Probate in Ontario?

You have been named executor, there is a house in the estate, and the probate application asks for its value. Many people assume that means paying for a formal appraisal. Others wonder whether a realtor's opinion or a property tax assessment will do.

This article explains what the application actually asks for, what Ontario's guidance says about appraisals, which assets count toward the total, and how a sensible valuation protects you. It is general information, not advice on your particular estate.

What the probate application asks you to report

The application for a certificate (Form 74A) asks for the total value of real property, the total value of personal property and the total estate value. The value is measured as at the date of death, not the date you apply or the date you eventually sell.

The estate's value is stated in Canadian dollars at the date of death. Estate administration tax is paid as a deposit when you apply and becomes the tax once the certificate is issued.

Is a formal appraisal required?

Ontario's guidance on applying for probate does not require a formal appraisal. It describes the estate value as at the date of death and allows a sworn estimate to be used, with a later sworn statement of the actual value.

That does not mean any number will do. You are swearing or affirming the value, so it should be an honest, reasonable figure you can explain. Whether a realtor's opinion, a written appraisal or another source of information is the sensible choice depends on the property, the size of the estate and how contested the value might be. A lawyer can help you decide what fits your situation.

• A house that is clearly worth a large sum and will be sold soon may have a recent sale price or listing evidence to point to.
• A unique, rural or mixed-use property may be harder to value from a quick opinion.
• If beneficiaries disagree about value, written support for your figure can reduce arguments later.
• If the estate is near a threshold, such as the exempt amount, the value matters more to the tax.

What counts toward the estate value

The house is only part of the picture. The total includes many other assets, and some things are left out. The table below summarizes the main items.

How the number affects the tax

For applications made on or after January 1, 2020, the tax is $15 for every $1,000 of estate value, or part of $1,000, with the first $50,000 exempt. The value is rounded up to the next thousand dollars before the rate is applied. For example, a $500,000 estate owes (500 − 50) × $15, which is $6,750.

If the estate is valued at $50,000 or less, no tax is payable, but you must still apply for the certificate and file the Estate Information Return. The older two-band system with a $5-per-$1,000 band applied only to applications made before 2020 and no longer applies.

Because the mortgage reduces the value of the home for this purpose, tax on a mortgaged Ontario home is based on the equity, not the full market value. Real estate commissions you expect to pay on a sale cannot be subtracted.

If you cannot pin down the value yet

In some cases the tax can be paid on an estimated value that is sworn or affirmed on the application. You then undertake to file a sworn statement of the total value within six months and pay any balance owing. If you cannot pay the tax when applying, you can ask a judge for an order allowing payment later once estate assets are accessible.

If you used an estimate, you will later need to give an amended Estate Information Return within 60 days of the actual value being shared with the court.

What to do next

• Gather the property's registered mortgage or lien information and the date of death.
• Collect whatever supports your valuation, such as a realtor's written opinion, a recent assessment notice or comparable sales, and keep copies.
• List every other asset and note which have named beneficiaries or are held jointly.
• Decide whether to use a firm figure or a sworn estimate, and diarize the six-month follow-up if you estimate.
• Talk to a lawyer or accountant if the property is unusual, beneficiaries disagree, or the figure is close to a threshold.

Frequently asked questions