What Happens to an Estate With No Known Relatives in Ontario

Sometimes a person dies without a will and with no relatives that anyone can find. Neighbours, a landlord or a bank may be left wondering who is in charge of the property.

Ontario has specific rules for this. They involve the Public Guardian and Trustee, and in the end can involve the Crown. This article explains the steps in plain terms.

Who inherits when there is no will

With no spouse, the Succession Law Reform Act sets an order: issue, then parents equally, then brothers and sisters, then nephews and nieces equally without representation, then next of kin of equal degree. A common-law partner does not inherit when there is no will. Relatives conceived before the death and born alive afterward inherit as if they had been born in the deceased's lifetime.

If none of these people survive, the property becomes the Crown's and the Escheats Act, 2015 applies.

If there is a spouse, the result is different. A spouse with no surviving issue takes the whole estate. A spouse with issue takes the preferential share, then one-half of the residue if there is one child, or one-third if there is more than one child. The preferential share is $350,000 for deaths on or after March 1, 2021, and $200,000 for deaths before that date. A spouse has no intestacy entitlement if the spouses were separated at death. Separated means living apart at death and, before death, one of the following: three years apart because of the breakdown of the marriage, a separation agreement, a court order, or a family arbitration award. This applies where the qualifying event occurred on or after January 1, 2022.

Notice to the Public Guardian and Trustee

If someone dies without a will and has no adult next of kin in Ontario, the local registrar must notify the Public Guardian and Trustee before letters of administration are issued to anyone else. The Public Guardian and Trustee may apply for a grant within 30 days of notice, and letters may issue sooner if it consents.

If someone does come forward to apply, who is appointed depends on the facts, so it is worth confirming with a lawyer. A spouse or common-law partner generally has the first right to apply, followed by close adult relatives such as a child, parent, grandchild, sibling, nephew or niece, and the court may appoint whichever relative it considers most appropriate. Letters of administration cannot be granted to a person who does not live in Ontario, except when a grant is resealed under s. 52 of the Estates Act.

A person granted administration must generally give a bond to the judge of the court making the grant. The bond is generally for double the sworn value of the estate, but the judge may reduce it or dispense with it. No bond is required for a small estate unless a beneficiary is a minor or is incapable within the meaning of s. 6 of the Substitute Decisions Act, 1992. The small-estate amount is $150,000.

The PGT as estate trustee of last resort

The Public Guardian and Trustee may apply to act only when all of these apply:

• The deceased lived in Ontario or owned real estate here.
• There is no will, or the executor has died or become incapable.
• There are no known next of kin living in Ontario, or they are minors or incapable adults.
• The estate meets the office's financial criteria after the funeral and all debts are paid.

Because the last condition is financial, a very small or insolvent estate may not qualify. A lawyer can help you understand what to do in that case.

Debts matter here. The estate is distributed only after funeral and burial expenses and debts are paid. If the assets are not enough to pay all debts, they are paid proportionately, with no debt of one kind taking priority over another.

Escheat: when property goes to the Crown

Under the Escheats Act, 2015, the Public Guardian and Trustee may take possession, in the Crown's name, of property that passed to the Crown because someone died wholly or partly intestate with no lawful heirs. No inquisition is required first.

This is not always final. A person who proves a legal claim to escheated property is entitled to receive it. The Lieutenant Governor in Council may also grant property to a person with a moral claim. Interest on a claim runs only until the earlier of 10 years after the death or the date the money is paid into the Consolidated Revenue Fund.

What to do next

• Look for a will in the home, safety deposit box, lawyer's office, private will registries and court records.
• Secure the property and keep records of any expenses.
• Make reasonable efforts to identify relatives, including parents, siblings, nieces and nephews.
• If you are a creditor, landlord or friend, ask a lawyer how to bring the matter to the court or the Public Guardian and Trustee.
• Remember that no distribution can happen on an intestacy until one year after the death.

If you have a financial interest in the estate, you may file a request for notice (Form 74P) at any time before a certificate is issued, and it expires three years after filing and can be renewed.

Whoever ends up administering the estate should also expect Estate Administration Tax. For applications on or after January 1, 2020, no tax is payable if the estate is worth $50,000 or less, and above that the tax is $15 for each $1,000 or part of $1,000 by which the value exceeds $50,000. Unsecured debts such as credit card balances cannot be deducted to reduce the estate's value for this tax. An Estate Information Return must be filed with the Ministry of Finance within 180 calendar days after the certificate is issued, even if no tax is payable. How all of this applies to a particular estate depends on its facts, so it is worth confirming with a lawyer.

Frequently asked questions