- In Ontario, a small estate for probate purposes is one valued at $150,000 or less, and it uses its own application and certificate.
- Small estates still pay Estate Administration Tax on the value over $50,000, and nothing is payable on the first $50,000.
- An Estate Information Return is still due within 180 calendar days of receiving a Small Estate Certificate, even when no tax is owed.
When someone dies leaving a modest estate, families often hope the court process will be lighter and cheaper. In Ontario there is a simplified route for smaller estates, and it also affects the tax you deal with.
This article explains when the simplified application applies, how the tax works for these estates, what happens if more assets turn up later, and what to do first. Your own facts matter, so a lawyer can confirm how this applies to your situation.
What counts as a small estate in Ontario
Since April 1, 2021, a small estate for probate purposes is one valued at $150,000 or less. Larger estates go through the regular application for a Certificate of Appointment of Estate Trustee, which uses Form 74A.
The figure that matters is the value of the estate for probate, not everything the person ever owned. Some assets are left out, such as jointly owned property that passes automatically to the surviving owner and insurance paid to a named beneficiary. RRSPs, RRIFs and TFSAs with a beneficiary designation are also left out, but those payable to the estate are counted.
Only encumbrances on real property, such as a registered mortgage, can be deducted. Funeral expenses, credit card debt and lawyer's fees do not reduce the value.
The simplified application: forms and steps
The small estate application is Form 74.1A, filed with Form 74.1B, together with a draft Small Estate Certificate (Form 74.1C). This is different from the Form 74A used for other probate applications.
If there is no will, the deceased's spouse or common-law partner usually has the first right to apply. After them, a close adult relative (child, parent, grandchild, sibling, or nephew or niece) can apply, and the court may appoint whichever relative it considers most appropriate.
- Gather statements, appraisals and other documents that support the value of each asset.
- Work out the total estate value, valuing assets at fair market value at the time of death.
- Prepare the small estate forms and pay any tax when you file.
- Keep a copy of everything for the return you will file afterwards.
How the tax works for a small estate
For estate certificates applied for on or after January 1, 2020, no tax is payable on an estate worth $50,000 or less. Above $50,000, the tax is $15 for every $1,000 (or part thereof) of value over $50,000, and the value is rounded up to the nearest thousand dollars.
Small estates still pay tax on the value over $50,000, up to the $150,000 cap. The tax is paid when the application is filed, unless it is not payable or the court orders it deferred. The estate pays the tax, not the estate representative personally.
| Estate value | Tax position |
|---|---|
| $50,000 or less | No tax payable |
| Over $50,000, up to $150,000 | $15 per $1,000 (or part) over $50,000 |
| Over $150,000 | Regular application, not the small estate process |
After the certificate: the Estate Information Return
An Estate Information Return must be filed within 180 calendar days of receiving a Small Estate Certificate, even if the estate is under $50,000 and no tax is owed. If a deadline falls on a weekend or holiday, it moves to the next business day.
Filing online is recommended, and the return can also be filed by mail, courier, fax or in person. Keep the records supporting the return for four years at your principal place of business or residence. 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, imprisonment for up to two years, or both.
If you later find the return was incorrect or incomplete, an amended return must be filed within 60 days of becoming aware of it, within four years of the certificate being issued.
What if more assets are found later
If new assets turn up and the new total is still $150,000 or less, the estate can apply for an Amended Small Estate Certificate (Form 74.1E). If the total goes over $150,000, a Certificate of Appointment of Estate Trustee must be applied for instead.
Additional tax found to be owing can be paid to the Superior Court of Justice or the Ministry of Finance, with an affidavit setting out the revised value of the estate at the time of death.
What to do next
- List every asset and decide which ones are actually part of the estate for probate.
- Check whether the total is $150,000 or less.
- Collect appraisals, statements and mortgage details.
- Confirm who has the right to apply, especially if there is no will.
- Diarize the 180-day return deadline once the certificate is issued.
If the estate is close to the $150,000 line, includes a business or complex assets, or the family disagrees about who should act, speak with a lawyer before filing.
Frequently asked questions
Is there any tax on a small estate in Ontario?
It depends on the value. Nothing is payable on the first $50,000, but tax applies to the value over $50,000, up to the $150,000 cap.
Do I still file a return if the estate owes no tax?
Yes. The Estate Information Return is still required within 180 calendar days of receiving the Small Estate Certificate.
What if the estate turns out to be worth more than $150,000?
If newly found assets push the total over $150,000, you must apply for a Certificate of Appointment of Estate Trustee instead. If the total stays at or under that amount, an Amended Small Estate Certificate is available.
Who pays the tax, me or the estate?
The estate pays the tax, not the estate representative personally. It is generally paid when the application is filed.
Sources
- Ontario.ca – Estate Administration Tax — ontario.ca
- Ontario.ca – Apply for probate of an estate — ontario.ca
- Ontario.ca – Probate of a small estate — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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