How Long Until Beneficiaries Get Paid in Ontario?

Waiting for an inheritance can be frustrating, especially when you cannot see what is happening behind the scenes. There is no single answer to how long it takes, because every estate has different assets, debts and family circumstances.

This article explains the one-year benchmark Ontario courts refer to, the steps that commonly slow payment, and what you can do as a beneficiary if things seem stalled.

What is the executor's year?

The estate trustee (often called the executor) carries out the wishes in the will. Their duties include winding up the deceased person's affairs, paying taxes, bills and other debts, and then distributing the estate according to the will.

Estates are still presumed to be wrapped up within one year of death. This is often called the "executor's year". Think of it as a benchmark rather than a promise that you will be paid on a particular date.

When an estate is not simple, the court accepts that expecting administration to finish within that year may be unreasonable. A straightforward estate may close sooner, while an estate with a business, real estate to sell or a dispute may take longer.

What commonly delays payment

• Notice to beneficiaries. A person applying for probate must send or give a copy of the application form to everyone entitled to a share of the estate, before filing with the court. If a beneficiary is a minor or an incapable adult, the application may also need to go to the Office of the Children's Lawyer and the Office of the Public Guardian and Trustee.
• Small estates. For a Small Estate Certificate (estates of $150,000 or less, as of April 1, 2021), the signed application must reach everyone entitled to a share 30 days before filing.
• Tax filings. A final income tax return is due April 30 of the following year for a death between January 1 and October 31, or six months after death for a death between November 1 and December 31. If the deceased or their spouse or common-law partner carried on a business, the due date can be June 15 of the year after death.
• The Estate Information Return. It must be filed within 180 calendar days after the estate certificate is issued.

None of these steps is a sign that something has gone wrong. They are part of the ordinary process, and they happen before the estate trustee can safely hand out the full estate.

Why trustees wait for the tax clearance

A legal representative who distributes assets before getting a CRA clearance certificate (Form TX19) is personally liable for unpaid amounts, up to the value of the assets distributed. That is a strong reason for careful trustees to hold back money, or to wait entirely, until the tax position is confirmed.

If you are worried about tax on your own inheritance, the CRA lists most gifts and inheritances among amounts that are not reported or taxed. Any gain on the deceased's property is generally reported on the deceased's final return, not by the beneficiary. The Estate Administration Tax, where it applies, is paid by the estate rather than by beneficiaries.

Situations with their own timing rules

The spousal election applies to married spouses. Common-law partners do not have an equalization election, so their position depends on other rules and the will. A lawyer can confirm how this applies to your family.

What to do if it feels too slow

Start with a polite request for an update. Many delays come from a lack of communication rather than a problem. If that does not help, any person who appears to have a financial interest in the estate may ask the court for an order requiring the estate trustee to pass accounts.

When an application to pass accounts is made, the notice states that objections must be served at least 35 days before the hearing. The court decides only the issues raised in filed notices of objection, and if no objection is filed the trustee may obtain judgment without a hearing.

• Ask the estate trustee in writing for a status update and a rough timeline.
• Ask whether probate has been applied for and whether you received notice.
• Ask whether the final tax return and clearance certificate are done.
• Note any dates mentioned, such as the one-year mark.
• Speak with a lawyer before filing anything with the court.

Frequently asked questions