Small Estate Certificate in Ontario: How the $150,000 Process Works

When someone dies owning a house, or money held at a bank in their name alone, a bank or land registry office will often want a court document before it deals with the estate. For a modest estate, Ontario has a shorter route than a full application for a Certificate of Appointment of Estate Trustee.

This article walks through that route: who qualifies, the forms, the notice and timing, the tax, when a bond is needed, and what to do if the application is refused or the estate turns out to be larger than expected. Every estate is different, so use this as a map, not a substitute for advice on your own file.

Does your estate qualify?

Since April 1, 2021, an estate valued at $150,000 or less can use the simplified Small Estate Certificate process. An estate that exceeds that limit must instead apply to the court for a Certificate of Appointment of Estate Trustee.

The value that matters is built from what the person owned at death. It generally includes Ontario real estate (less mortgages or liens on that property), bank accounts, investments, vehicles, business interests and insurance paid to the estate. Some things are left out, including jointly held assets that pass automatically to the other owner, and registered plans such as RRSPs, RRIFs and TFSAs that have a named beneficiary.

Assets are valued at fair market value on the date of death, and real estate is valued at its appraised value on that date, even if it later sells for more or less. Only mortgages, liens and similar encumbrances on real property can be deducted, and only from that property. Funeral costs, credit card debt and lines of credit cannot be deducted. This is why a house with a modest mortgage and some savings can push an estate over the limit.

The forms and the steps

The simplified process uses Form 74.1A (the application), Form 74.1B (the request to file) and Form 74.1C (the draft certificate), plus an affidavit on Form 74D, 74E or 74F as needed.

• Confirm who is entitled to apply. 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, followed by a close adult relative.
• Gather the original will if there is one, proof of death, and a reasonable record of the assets and their date-of-death values.
• Complete the forms, including the right affidavit for the type of will you have.
• Send the application to the beneficiaries or their legal representatives 30 days before filing with the court.
• File with the court. Estates over $50,000 and up to $150,000 pay the Estate Administration Tax when the application is filed, while estates of $50,000 or less pay none.

Applications are usually processed within five business days. That is a typical time, not a promise, and it can be longer if documents are missing.

Estate Administration Tax and the Estate Information Return

Estates over $50,000 and up to $150,000 pay Estate Administration Tax when the application is filed. For certificates applied for on or after January 1, 2020, there is no tax on the first $50,000. Above that, the tax is $15 for every $1,000, or part of $1,000. The estate value is rounded up to the nearest $1,000 for the calculation.

The estate pays the tax, not the estate representative personally. If you cannot pay when filing, you can ask a judge for an order allowing payment later.

Paying the tax is separate from the Estate Information Return. The representative must file that return with the Ministry of Finance within 180 calendar days after the certificate is issued. It lists each asset and its value on the date of death, and it must be filed even if the estate value is $0. Failing to file, or making false or misleading statements, can lead to a fine of at least $1,000 and up to twice the tax payable, and possibly imprisonment.

When a bond is needed

For a small estate, no bond is required unless a beneficiary is a minor or is incapable. A non-resident applicant is the exception to that rule.

Where a bond is required, it is generally set at twice the value of the deceased's property, although a judge may reduce it or dispense with it in special circumstances. Whether those circumstances exist in your case is worth confirming with a lawyer.

If it is refused, or the estate changes

• Refusal: a refused small estate application receives Form 74.1D, Registrar's Notice to Applicant. Read the reason carefully before refiling.
• Assets found later: you can file Form 74.1E to get an Amended Small Estate Certificate (Form 74.1F), but only if the combined value stays at $150,000 or less.
• Estate goes over the limit: you must apply for a Certificate of Appointment of Estate Trustee instead.
• Extra assets after the return is filed: file an amended Estate Information Return within 60 days of becoming aware, and any extra tax is then payable.

What to do next

• List every asset and debt, and note which are jointly held or have a named beneficiary.
• Get date-of-death values supported by documents such as account statements or an appraiser's opinion.
• Identify every beneficiary, including any minors or adults who may be incapable.
• Calendar the 30-day notice period before you plan to file.
• Diarize the 180-day Estate Information Return deadline once the certificate is issued.
• Speak with a lawyer if the value is close to $150,000, a beneficiary is a minor, or anyone may object.

Frequently asked questions