Security Bond for a Non-Resident Estate Trustee in Ontario

If you are named as executor but live in another province or another country, one of your first questions is whether the court will ask you to post a bond. A bond is security that protects the estate and the people entitled to it.

The answer depends on where you live, whether you are an executor or an administrator, and the size and makeup of the estate. This article sets out the Ontario rules in plain terms so you know what to ask.

When a bond is required for an executor

Letters probate may not be granted to a person who lives outside Ontario and outside the Commonwealth unless they give the same security an administrator would, or a judge dispenses with or reduces it in special circumstances. Ontario.ca states that a bond is needed for a named executor only when the applicant does not live in Ontario, another province or territory, or a Commonwealth country.

So an executor living in another province, or in a Commonwealth country, is generally not required to post a bond because of where they live. Courts may still require or waive bonds in practice, and requirements can vary by courthouse, so confirm locally.

Administrators and the amount of the bond

Different rules apply when there is no will, or no named executor is acting. Every person granted administration, including administration with the will annexed, must give a bond with any sureties the judge requires. Letters of administration may not be granted to a person not residing in Ontario, except when resealing letters under section 52.

The bond is for double the sworn value of the estate. The judge may at any time, in special circumstances, reduce or dispense with it. Because the amount is tied to the sworn estate value, a large estate can mean a large bond.

Exceptions that may remove the need for a bond

Whether an estate counts as a small estate depends on a threshold set by regulation that can change, so check the current figure before relying on it.

How a bond is arranged, reduced or avoided

Unless the court orders otherwise, a bond must come from a licensed insurer (Form 74L) or from personal sureties (Form 74M). A personal surety must be an Ontario resident who is not a minor, and one personal surety is enough if the estate's assets do not exceed $100,000.

An applicant may ask for an order dispensing with or reducing the bond, or limiting security to Ontario assets. If all persons entitled to share consent and none is a minor or an incapable person without a guardian or attorney, this can be requested without a motion, using a draft order (Form 74I), consents (Form 74G) and an affidavit (Form 4D).

• Ask the beneficiaries early whether they will consent, since their agreement can simplify the request.
• Ask whether the estate's assets in Ontario are the only ones needing protection, as security can be limited to them.
• Compare the cost and paperwork of an insurer bond with using an Ontario resident as a personal surety.

What to do next

• Confirm whether you are applying as an executor or as an administrator.
• Note exactly where you live, since that decides the executor rule.
• Estimate the estate's value and check whether any beneficiary is a minor or incapable.
• Talk to the beneficiaries about consenting to a reduced or waived bond.
• Ask the courthouse where the application will be filed how it handles bonds.
• Have an Ontario estates lawyer review the forms before you file.

Bond rules interact with tax and practical issues too, so it is worth getting advice before you commit to acting from a distance.

Frequently asked questions