Bank Accounts After Death With No Will in Ontario: Who Can Access Them?

If a relative has died without a will, you may be left wondering how to get into their bank accounts to pay the funeral home, the utilities and the credit cards. Banks are careful about this, and for good reason.

This article explains who has authority to deal with the accounts in Ontario, how that authority is obtained when there is no will, and what to expect along the way.

Why the bank will not just open the account to a relative

The estate trustee is the only person with legal authority to manage or distribute an estate. Being the next of kin, or having been named on a card or as a contact, is not the same thing. When there is no will, nobody has been named, so someone usually has to be appointed by the court.

Banks generally ask for proof of that authority before they release funds or close an account. The exact documents and internal steps differ from one institution to another, so ask the bank what it needs. Some accounts may also work differently, for example if they were held jointly or carry a named beneficiary. That depends on the account terms, and a lawyer can help you confirm.

Who can apply to administer the estate

Where there is no will, administration may be granted to the person the deceased was married to immediately before death, or a person living with the deceased in a conjugal relationship outside marriage immediately before death, or to the next of kin, or to both. In practice the spouse or common-law partner usually has the first right to apply, and a close adult relative such as a child, parent, grandchild, sibling or nephew or niece can apply after them. The court may appoint the relative it considers most appropriate.

Two other points help families who disagree or who do not want the job.

• If the persons entitled to administration, or a majority of those living in Ontario, ask for another person to be appointed, the right passes to the person they name, subject to the court's discretion.
• The court is not obliged to appoint the person otherwise entitled. It may appoint anyone it thinks fit, for example because of insolvency or other special circumstances, on security the court directs.

An applicant files a Consent to Applicant's Appointment as Estate Trustee (Form 74G, Part B). A Renunciation (Form 74G, Part A) is needed from anyone entitled to priority who has not joined the application.

Bonds, tax and small estates

A bond is required when the deceased died without a will. The bond is for double the sworn value of the deceased's property unless a judge orders otherwise. The surety can be an insurer licensed in Ontario or personal sureties. Two personal sureties are needed for estates over $100,000 and one for $100,000 or less, and a personal surety must be an adult Ontario resident with sufficient assets who is not a lawyer or court registrar.

A small estate, valued at $150,000 or less as of April 1, 2021, can use the small estate certificate process, with application Form 74.1A and draft Small Estate Certificate Form 74.1C.

Estate Administration Tax is not payable on estates of $50,000 or less. Above that, the tax is $15 per $1,000, or part, of the value over $50,000, for certificates requested on or after January 1, 2020. An Estate Information Return is due within 180 calendar days of receiving the certificate.

Registered accounts and what happens to the money

Some bank products, such as RRSPs, have tax consequences. For an unmatured RRSP, the plan's fair market value immediately before death is included in the deceased's income on the final return. If no beneficiary is named, the plan is paid to the estate and divided under the intestacy rules. Where a spouse, common-law partner or financially dependent child or grandchild inherits, the legal representative and that survivor can elect to treat some or all of it as paid to the survivor, which reduces the amount taxed on the final return. An accountant can explain how this affects your case.

Once money is collected, funeral and burial expenses and debts are paid before the estate is distributed, and the estate trustee is responsible for paying taxes, bills and other debts. The remainder then goes to the people entitled under the intestacy rules, who are the spouse and closest next of kin. A common-law spouse does not inherit under those rules.

What to do next

• Order several copies of the death certificate.
• List the accounts, branches and account numbers you know of, but do not move any money yet.
• Ask each bank what it requires from the person with authority over the estate.
• Keep the funeral invoice and any bills you pay personally, and record who paid them.
• Work out who has priority to apply and whether the others will sign a consent or renunciation.
• Speak with an Ontario lawyer about the application, the bond and the creditor notices before distributing anything.

Frequently asked questions