Small Estate Certificate in Ontario: Is Your Estate Eligible?

If the person who died left a modest estate, you may be hoping for a faster and simpler route than full probate. Ontario has one, but it only works if the estate is within a set value limit.

This page explains the Small Estate Certificate, who it fits, how it compares with the regular process, and what still applies even when the estate is small.

What a Small Estate Certificate is

Probate is the court procedure that gives someone authority to act as estate trustee. In Ontario the document the court issues is called a Certificate of Appointment of Estate Trustee. Probate is not always required. An estate normally must be probated if the person owned real property, or assets held by a financial institution, in their own name.

For smaller estates, Ontario offers a simplified process. Since April 1, 2021, an estate valued at $150,000 or less can use the Small Estate Certificate process.

Who applies is a separate question from which process you use. If there is a will, the estate trustee named in it usually applies. If there is no will, the married spouse or common-law partner usually has first right to apply, followed by a close adult relative.

Is your estate eligible?

• The estate must be valued at $150,000 or less.
• If the estate is over that limit, it must apply to the court for a Certificate of Appointment of Estate Trustee instead.
• If more assets turn up later, an Amended Small Estate Certificate is available only if the combined value stays at $150,000 or less.

Because the limit is a hard line, the value you assign matters. Assets are valued at fair market value on the date of death, supported by documents such as account statements or an appraiser's opinion. If you are close to the limit, a lawyer can help confirm what to count.

How it differs from a full certificate

Processing times are typical, not promises. For regular applications they run longer if documents are missing or a judge must decide an issue.

Tax, bonds and other points that still apply

A small estate is not automatically tax-free. Estates of $50,000 or less pay no Estate Administration Tax, but estates over $50,000 and up to $150,000 pay it when the application is filed. Above $50,000 the tax is $15 for every $1,000, or part of $1,000, and the estate value is rounded up to the nearest $1,000. Even when no tax is payable, an Estate Information Return must still be filed if a certificate is issued.

The tax is based on the value of all assets the deceased owned at the time of death, including Ontario real estate (less mortgages or liens on it), bank accounts, investments and vehicles. Assets held jointly that automatically pass to the other owner are not included. Registered plans such as RRSPs and TFSAs with a named beneficiary are also left out, but are included if there is no designation. The estate pays the tax, not the representative personally.

On bonds, none is required for a small estate unless a beneficiary is a minor or is incapable, but this is subject to the rule for non-residents: a person who does not live in Ontario or elsewhere in the Commonwealth must give security, which a judge may waive or reduce in special circumstances. If there is no will and there are minor or incapable adult beneficiaries, a bond is needed unless the applicant is the deceased's spouse and has filed an affidavit asking the court to dispense with it. A non-resident applicant outside Ontario, Canada or the Commonwealth still needs a bond.

What to do next

• Total the assets at their date-of-death values and compare the result to $150,000.
• Identify the beneficiaries and plan to send them the application 30 days before filing.
• Prepare Forms 74.1A, 74.1B and 74.1C, plus an affidavit 74D, 74E or 74F as needed.
• Pay any Estate Administration Tax when filing.
• Diarize the Estate Information Return, due within 180 days after the certificate is issued.
• Before distributing, get a CRA clearance certificate.

Once the certificate is issued, the estate trustee winds up the deceased's affairs, pays taxes, bills and other debts, collects the assets, and distributes what is left to those entitled to it. A representative who distributes before getting a clearance certificate can be personally liable for any tax debt, up to the value of the assets distributed.

If a beneficiary is a minor, the value is close to the limit, or there is a dispute, speak with a lawyer before choosing a route.

Frequently asked questions