Why Banks Ask Executors for a Certificate of Appointment

You have been named executor, you bring the will to the bank, and the bank says it cannot release the money without a court-issued certificate. It feels like a roadblock, especially when the will is clear and everyone in the family agrees.

This article explains, in plain words, why institutions ask for the certificate, which assets may not need one, and what an executor can do next. Policies differ from one institution to another, so treat this as a general guide and not a prediction about your bank.

Why a will alone is not enough for the bank

A will is a private document. How a particular bank handles a request to release funds depends on its own policies and the facts of the estate, so it is worth confirming with the institution and a lawyer.

Ontario's own guidance reflects this. It treats probate as normally necessary when the deceased owned real property or assets held by a financial institution. It also says probate is typically needed when there is no will, no named estate trustee, or a dispute about the trustee or the will.

Each institution sets its own internal rules, so the point at which a certificate is required can differ. The Ontario guidance itself advises checking whether the institution holding an asset requires a certificate or a small estate certificate.

Assets that may not need a certificate

Not everything the deceased had passes through the estate. Some assets pass outside it and need no certificate, such as joint bank accounts and accounts with a designated beneficiary. If the survivor or named beneficiary already has a right to the money, the institution may deal with them directly.

Which category an asset falls into depends on how it was held and the paperwork on file, so ask the institution what it has on record.

Which certificate: small estate or full

For probate purposes, a small estate is one valued at $150,000 or less, as of April 1, 2021. That route uses Form 74.1A and a draft certificate on Form 74.1C. Estates over $150,000 need a Certificate of Appointment of Estate Trustee.

A bond may be required for a small estate certificate in some cases, such as when the applicant is not a resident of Ontario, Canada or a Commonwealth country, or when minor or incapable adult beneficiaries are involved.

What applying involves, and what it costs

• Before filing, the applicant must send or give the application to the estate beneficiaries, with a copy signed before a Commissioner for Taking Affidavits.
• If minor or incapable adult beneficiaries are involved, the application may also need to go to the Office of the Children's Lawyer and the Office of the Public Guardian and Trustee.
• Court staff search for a more recent will deposited with the court, and the certificate may be refused if a more recent will was deposited than the one filed.
• Applications are typically processed within 15 business days but may take longer.

There is no Estate Administration Tax on the first $50,000 of estate value for certificates applied for on or after January 1, 2020, and above that the rate is $15 per $1,000 or part of $1,000. The estate pays this tax, not the executor personally, and it is paid as a deposit when the application is filed. If no certificate is issued, no tax is owed and the deposit is refunded.

For example, the value is rounded up to the nearest thousand first, so an estate of $240,000 owes $2,850.

What to do next

If the bank is asking for a certificate, a few practical steps can save time. Remember that a named executor is not required to act, and that the role involves paying taxes, bills and debts, collecting assets and distributing the rest.

• Ask the bank in writing exactly what it requires, and whether a small estate certificate would be accepted.
• List every asset and note how it is held: sole name, joint, or with a named beneficiary.
• Tell banks and financial institutions of the death, which is among an executor's early duties.
• Order certified proof of death if you need it; only the next of kin or the executor can order a certified copy of the death registration.
• Identify the beneficiaries, including any minors or incapable adults, before you prepare the application.
• Speak with an Ontario estates lawyer if the estate is near the $150,000 line, the will is unclear, or anyone disputes it.

Frequently asked questions