What Assets Are Included in Ontario's Probate Estate Value — and What Are Not

When an executor applies for a Certificate of Appointment of Estate Trustee in Ontario, one of the most consequential decisions they make is determining the gross value of the estate to declare. That number drives the Estate Administration Tax (EAT) calculation. Declare too little and you risk penalties and a Ministry reassessment. Include assets that should be excluded and you overpay.

Getting this right requires a clear understanding of which assets are part of the probate estate and which legitimately fall outside it. This article provides a practical, category-by-category reference for Ontario executors.

The Core Rule: Does the Asset Pass Through the Estate?

The starting principle is functional: if an asset must be dealt with through the estate — if the executor needs a probate certificate to transfer, access, or deal with it — it is almost certainly part of the probate estate and counts toward the EAT value.

Assets that transfer automatically at death (by contract, by law, or by operation of a survivorship right) generally do not require the estate to be involved, and therefore do not count toward the EAT.

Assets Included in the Ontario Probate Estate Value

Real Property Held Solely by the Deceased

Ontario real estate that is registered solely in the deceased's name is an estate asset. So is the deceased's share of real estate held as a tenant in common (an undivided fractional share with another person who does not have a right of survivorship). The value used is fair market value on the date of death.

Bank and Investment Accounts in the Deceased's Name Alone

A bank account, GIC, term deposit, or investment account held solely by the deceased is an estate asset. The value is the balance (principal plus accrued interest) on the date of death.

Non-Registered Investment Holdings

Stocks, bonds, mutual funds, and ETFs held in a non-registered investment account in the deceased's name are estate assets. Use closing market value on the date of death for publicly traded securities.

Personal Property

All tangible personal property owned by the deceased — vehicles, jewellery, art, collectibles, furniture, electronics, clothing — is part of the estate. Use fair market value (what the items would sell for, not what they cost or what they mean to the family).

Business Interests Held in the Deceased's Name

Shares in a private corporation, a partnership interest, or sole proprietorship assets registered in the deceased's name are estate assets. These often require professional valuation.

Amounts Receivable by the Estate

If a third party owed money to the deceased at the time of death — an unpaid loan, deferred purchase proceeds, outstanding invoices — those receivables are estate assets and should be included at fair market value.

Proceeds of Life Insurance Payable to the Estate

If the deceased's life insurance policy names the estate as the beneficiary (or has no named individual beneficiary), the death benefit flows into the estate and is included in the EAT calculation.

Registered Accounts Without a Named Beneficiary

An RRSP, RRIF, or TFSA with no designated beneficiary (or where the estate is named as beneficiary) passes through the estate and counts toward the probate estate value.

Assets NOT Included in the Ontario Probate Estate Value

Jointly Held Real Property (Joint Tenancy)

Property held with another person as joint tenants passes by right of survivorship directly to the surviving joint tenant. It does not form part of the deceased's estate. The surviving joint tenant registers a survivorship application at the land registry — no probate certificate needed.

Jointly Held Financial Accounts (With Right of Survivorship)

Joint bank or investment accounts with a right of survivorship pass to the surviving account holder. They do not count toward the EAT.

RRSPs and RRIFs With a Named Beneficiary

When a valid beneficiary designation is in place, the registered account balance is paid directly to the beneficiary outside the estate. Not included in the EAT calculation.

TFSAs With a Successor Holder or Designated Beneficiary

A TFSA with a surviving spouse designated as successor holder, or with any individual named as a designated beneficiary, bypasses the estate.

Life Insurance With a Named Individual Beneficiary

The death benefit is paid directly to the named individual. Not an estate asset. Not subject to EAT.

Pension Plan Benefits Paid to a Named Beneficiary

Defined benefit pension survivor benefits and defined contribution plan proceeds paid to a designated beneficiary bypass the estate.

Property Outside Ontario

Real estate located in other provinces or countries may be subject to probate in that jurisdiction, but it is generally not included in the Ontario probate estate value. Consult a lawyer in the relevant jurisdiction for assets in other places.

The Gross Value Rule: Debts Are Not Subtracted

A point that trips up many executors: the EAT is calculated on the gross value of the estate — debts, mortgages, and liabilities are not deducted. A home worth $900,000 with a $400,000 mortgage is reported at $900,000 for EAT purposes. The estate pays the EAT, then pays the mortgage, then distributes what remains.

This is fundamentally different from, say, the net asset value used in accounting or financial planning. Ontario does not offer a net-value calculation for the EAT.

A Note on Foreign Assets

If the deceased owned property in another province or country:

• That property may require a separate probate or succession process in that jurisdiction.
• It is generally not included in the Ontario EAT calculation.
• However, the administration of that foreign asset may be entirely separate from the Ontario estate.

Where foreign assets exist, engage a lawyer (or refer to local counsel) in each relevant jurisdiction.

Frequently asked questions