Probate When Someone Dies Owning Property Outside Ontario

Many people die owning more than a home and bank account in Ontario. There may be a condo in another province, a bank account abroad, or a cottage in another country. If you are the family member or estate trustee, you may wonder whether one Ontario probate covers everything.

This article explains how Ontario treats assets located elsewhere, what counts for Ontario estate tax, and what to expect. It does not cover the law of other provinces or countries, which can be quite different.

What probate is, and what an Ontario certificate does

Probate is the court procedure for giving someone authority to act as estate trustee, confirming the authority of a trustee named in a will, or approving a will as valid. In Ontario, the document the court issues is called a Certificate of Appointment of Estate Trustee.

Whether probate is needed usually depends on the type of assets. An estate normally must be probated if the deceased owned real property, or assets held by a financial institution, in their own name. Whether an Ontario certificate will be accepted for assets in another province or country is up to that place's law and the institution holding the asset, so it is worth confirming locally.

What counts toward the Ontario estate value

Estate Administration Tax is based on the value of all assets the deceased owned at the time of death. Some assets located outside Ontario are counted and some are not.

• Real estate located outside Ontario is not included in the estate value for Ontario Estate Administration Tax.
• Bank accounts, including those at foreign banks, are included.
• Vehicles and vessels are included wherever they are located.
• Investments and business interests are included.

Assets are valued at fair market value on the date of death, and values must be supported by documents such as account statements or an appraiser's opinion. For complex assets such as a business, a professional appraiser may be needed.

Special situations: limited certificates and non-residents

For some certificates, such as those limited to the assets covered by one will or resealing cases, only the assets within that certificate's scope are counted. If someone has several wills for different assets, the scope of each certificate matters, and a lawyer can confirm how it applies.

If the deceased lived outside Ontario, the application is filed where they owned Ontario property. If the person applying does not live in Ontario, another Canadian province or territory, or a Commonwealth country, a bond is required. The bond is generally twice the estate's value unless a judge orders otherwise, and a judge can decide on a motion to waive it.

Reporting, tax and timing

The estate representative must file an Estate Information Return with the Ministry of Finance within 180 calendar days after the estate certificate is issued. It lists each asset and its value on the date of death. If new assets turn up, an amended return is due within 60 days of becoming aware of them, and any extra tax is then payable.

Income tax is a separate matter. A deceased person is considered to have sold all their capital property just before death, which can create a capital gain on the final return. Property outside Ontario may still be part of that picture, so an accountant can help. Before distributing the estate, the legal representative should get a CRA clearance certificate, because distributing first can make them personally liable for any tax debt, up to the value of the assets distributed.

What to do next

• List every asset and where it is located, including accounts, vehicles and real estate abroad.
• Gather the original will, any codicils and proof of death.
• Collect statements and appraisals to support date-of-death values.
• Ask a lawyer in each place where real estate is located what that place requires.
• Speak with an Ontario lawyer about the application, any bond and the Estate Information Return.
• Speak with an accountant about the final return and the clearance certificate.

Frequently asked questions