Can You Withdraw Money From a Deceased Person's Account in Ontario?

When someone dies, bills arrive quickly and the funeral has to be paid for. It is tempting to use the person's bank card, especially if you know the PIN and you were the one helping them with their money. You may also have already done it and now be worried.

This article explains who has authority over a deceased person's accounts in Ontario, why using a card or account without that authority is risky, and the options for paying funeral costs. Each bank has its own practices, so this is general information and not a substitute for advice on your situation.

Who has authority over the accounts

When a person dies in Ontario, their property passes to their personal representative, called the estate trustee. The estate trustee holds it for the people legally entitled to it, after the debts are paid.

Ontario's probate guidance says the estate trustee is the only person with legal authority to manage or distribute an estate. A Certificate of Appointment is what gives that authority to manage the estate's assets and pay its debts. Relatives who are not the estate trustee have no authority to withdraw money from the deceased's sole accounts.

Being a close relative, even the one who helped the person with their banking, does not by itself give you that authority, because relatives who are not the estate trustee have no authority to withdraw from the deceased's sole accounts. The estate trustee is the only person with legal authority to manage or distribute an estate. How a power of attorney fits in depends on your situation, so it is worth confirming with a lawyer. If you are unsure which role you hold, a lawyer can confirm.

Why using the card or account is risky

If you are not the estate trustee, using a dead person's debit card or online banking to take money out of one of their sole accounts is withdrawing without authority. Even if you meant to use the money for the funeral or to look after the family, the money is held for the people entitled to the estate and for the creditors.

• Property in the estate is held by the estate trustee for the people legally entitled to it, so money taken out can affect what they receive.
• Withdrawals can make it harder for the estate trustee to pay debts and divide the estate fairly.
• If the person has debts and little else, taking money out can cause problems with creditors.
• What a bank will do with an account after a death depends on the institution, so it is worth confirming directly.

Whether a particular account is a sole account or something else, such as a joint account, depends on how it was set up. How banks treat joint accounts and what a bank will release for a funeral without probate varies, so ask the institution directly and get a lawyer's view if the amounts are significant.

If you already used the card

Stop using it and do not try to hide what happened. Keep every receipt and write down what you took out, when, and what it paid for. Tell the person who is, or will be, the estate trustee. If you were thinking of reimbursing the estate or are worried about the consequences, speak to a lawyer before you decide how to proceed.

How funeral costs can be paid

Funeral costs are an expense of the estate. Unless the will says otherwise, debts and funeral and testamentary expenses are paid out of the residuary estate. Many families pay the funeral home themselves and then seek reimbursement from the estate once the estate trustee has authority. If you do this, keep the invoice and proof of payment.

The CPP death benefit can also help. For deaths on or after January 1, 2025, it is a basic $2,500 plus a possible $2,500 top-up, up to $5,000 in total, if the deceased contributed long enough, and the executor should apply within 60 days of the date of death. If there is no estate, or the executor does not apply, it may be paid in order to the person or institution paying the funeral expenses, the surviving spouse or common-law partner, or the next of kin. The top-up is not paid in some cases, for example if a surviving spouse or common-law partner is eligible for a survivor's pension.

What to do next

• Do not withdraw or transfer money from the deceased's accounts unless you are the estate trustee with authority.
• Find out who is named as estate trustee in the will, if there is one.
• Keep funeral invoices and proof of who paid them.
• Notify the CRA of the death as soon as possible, by phone or with Form RC4111, and return any CRA payment received after the death.
• Cancel CPP and OAS through Service Canada at 1-800-277-9914, and return payments issued after the month of death.
• If probate may be needed, speak to a lawyer. It is usually needed if the deceased owned real property or had assets held by a financial institution, though it depends on the type of asset.

Frequently asked questions