Is There a Probate Fee Exemption for Small Estates in Ontario?

If the estate you are dealing with is modest, you may wonder whether Ontario's probate tax applies at all. The short answer is that for estate certificates applied for on or after January 1, 2020, the first $50,000 of an estate's value is not taxed, so estates worth $50,000 or less pay no Estate Administration Tax.

This article explains how the exemption works, what has changed, and what a small estate still has to do.

How the exemption works

For estate certificates applied for on or after January 1, 2020, Ontario charges no Estate Administration Tax on the first $50,000 of the estate's value. Above $50,000, the tax is $15 for every $1,000, or part of $1,000.

So the exemption is not an all-or-nothing cut-off for larger estates. A larger estate does not lose it: the first $50,000 is still taxed at $0, and the tax applies only to the amount above that.

An estate worth $50,000 or less pays no Estate Administration Tax. If an estate certificate is issued, though, the estate representative must still file an Estate Information Return.

What changed in 2020

Older information online may show different numbers. For certificates applied for before January 1, 2020, the tax was $5 for each $1,000 (or part) of the first $50,000 and $15 for each $1,000 (or part) above $50,000.

The table comes from the two sets of rules. Check which date applies to your application.

Small Estate Certificates

Since April 1, 2021, an estate valued at $150,000 or less can use the simplified Small Estate Certificate process. It has its own forms: 74.1A (application), 74.1B (request to file) and 74.1C (draft certificate), plus an affidavit 74D, 74E or 74F as needed.

The application must be sent to beneficiaries or their legal representatives 30 days before filing with the court. Applications are usually processed within five business days. Estates over $50,000 and up to $150,000 pay Estate Administration Tax when the application is filed.

Estates over $150,000 must apply for a Certificate of Appointment of Estate Trustee instead. Do not confuse the $50,000 exemption with the $150,000 small-estate limit. They are different rules.

Do you need probate at all?

Probate is not always required. The type of assets usually decides whether it is needed. An estate normally must be probated if the deceased owned real property, or assets held by a financial institution, in their own name.

Some assets are left out when the estate value is worked out for Estate Administration Tax. Jointly held assets that pass automatically to the other owner are not included in that value. Registered plans with a beneficiary designation or declaration are also not included, but they are included if there is no such designation.

Land Registration Bulletin 2000-6 is an older bulletin, so confirm that it still applies before you rely on it, but it says a transmission can be registered without a certificate if the applicant states that none was applied for because the total estate value is not more than $50,000. A covenant to indemnify the Land Titles Assurance Fund must also be filed. Land registry practice can change, so confirm the current approach with a lawyer.

What to do next

• Total the estate's assets at their date-of-death values, using statements or appraisals.
• For Estate Administration Tax, leave out jointly held assets that pass to the other owner and plans with a named beneficiary.
• If the estate is worth $150,000 or less, look at the simplified Small Estate Certificate process.
• If a certificate is issued, file the Estate Information Return within 180 calendar days, even if the value is $0.
• Speak with a lawyer if you are unsure whether probate is needed.

Frequently asked questions