- The tax depends on probate, not on whether there is a will: it is charged only when an estate certificate is applied for and issued.
- Where there is no will, the spouse or common-law partner usually has the first right to apply, followed by close adult relatives.
- An administrator generally needs Form 74A, Form 74G Part B and often a bond, and must file an Estate Information Return after the certificate is issued.
When a relative dies without a will, someone has to step forward to deal with the estate. That person often wonders whether the death itself triggers a tax bill, and whether it will come out of their own pocket.
This article explains how Ontario's Estate Administration Tax applies when there is no will, who can apply, and what the administrator has to file. Every estate is different, so a lawyer can confirm how this works for yours.
Does having no will change the tax?
Not by itself. Ontario's Estate Administration Tax is charged only when an estate certificate (probate) is applied for and issued. If no certificate is applied for or issued, no tax is owed. The tax is paid by the estate, not personally by the estate representative.
For certificates applied for on or after January 1, 2020, no tax is payable on an estate worth $50,000 or less. Above $50,000, the tax is $15 for every $1,000 (or part thereof) of the estate's value over $50,000. The value is rounded up to the nearest thousand dollars.
Who can apply when there is no will
Where there is no will, the deceased's spouse or common-law partner usually has the first right to apply for probate. After them, a close adult relative (child, parent, grandchild, sibling, or nephew or niece) can apply, and the court may appoint whichever relative it considers most appropriate.
The application uses Form 74A (Application for a Certificate of Appointment of Estate Trustee). Without a will, Form 74G Part B, a consent to the applicant's appointment, is also needed. Form 74A asks for the total value of real property, the total value of personal property, and the total estate value.
A bond is required when the deceased died without a will. The bond is generally double the estate's value unless a judge orders otherwise.
What counts toward the value
The estate's value is the deceased's property at fair market value at the time of death. It is easy to over- or under-count, so go through the categories carefully.
| Counts toward value | Left out of value |
|---|---|
| Ontario real estate at appraised value, less mortgages or liens | Real estate outside Ontario |
| Bank accounts, investments, vehicles, business interests | Jointly owned assets passing automatically to the survivor |
| RRSPs, RRIFs and TFSAs where the estate is beneficiary | Registered plans with a beneficiary designation |
| Insurance payable to the estate | Insurance paid to a named beneficiary |
| A tenant in common's share | CPP death benefits |
Only encumbrances on real property can be deducted. Funeral expenses, lawyer's fees, loans, credit card debt and real estate commissions do not reduce the value.
Paying the tax and filing the return
The tax is paid as a deposit when the probate application is filed. Once the certificate is issued, the deposit becomes the Estate Administration Tax. At the court office it can be paid by cash or debit (where available), certified cheque, a cheque from a solicitor or firm trust account, a cheque from a trust company account, or a bank draft, with cheques and drafts made payable to "Minister of Finance".
The estate representative must file an Estate Information Return with the Ministry of Finance within 180 calendar days after the certificate is issued. This is required even when the estate is worth $50,000 or less and no tax is owed. If the deadline falls on a weekend or holiday, it moves to the next business day. Failing to file, or making false or misleading statements, may lead to a fine, imprisonment, or both.
For smaller estates, a small estate is one valued at $150,000 or less, and it uses Form 74.1A. Tax is still payable on value over $50,000.
What to do next
- Find out who has priority to apply, starting with a spouse or common-law partner.
- List all assets and debts, and note which assets pass outside the estate by survivorship or designation.
- Obtain appraisals or statements for the values you will report.
- Prepare Form 74A and the consent on Form 74G Part B, and ask about the bond.
- Diarize the return deadline after the certificate is issued.
- Speak with a lawyer if family members disagree about who should act or if the estate is complex.
Frequently asked questions
Is tax owed just because there is no will?
No. The tax is charged only when an estate certificate is applied for and issued, and if none is, no tax is owed. If probate is needed, the usual rates apply.
Do I pay the tax personally as administrator?
The tax is paid by the estate, not personally by the estate representative. It is paid as a deposit when the application is filed.
Do I still file a return if the estate is under $50,000?
Yes. Even when no tax is owed, the estate must still file an Estate Information Return after the certificate is issued. It is due within 180 calendar days.
Why is a bond needed?
A bond is required when the deceased died without a will, and it is generally double the estate's value unless a judge orders otherwise.
Sources
- Ontario.ca – Estate Administration Tax — ontario.ca
- Ontario.ca – Administering estates — ontario.ca
- Ontario.ca – Apply for probate of an estate — ontario.ca
- Ontario.ca – Co-ownership arrangements — ontario.ca
- Ontario.ca – Probate of a small estate — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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