Jun 10, 2022
How long does an executor have to settle an estate in Ontario?
Settling an estate is a challenging responsibility that can often take between six months to a year in Ontario. Here’s what you need to know.
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Going through probate in order to settle an estate when someone dies can be a frustrating, long, and costly process. Usually, an estate will have to go through probate court if it’s particularly complex and/or has many assets, in which case the probate court validates the will, officially names the appointed executor and authorizes them to deal with banks, insurance companies, administrators, and any outstanding tax issues.
However, this whole process costs money: You’ll have to pay a so-called estate administration tax, also known as a probate fee, in order to go through probate. The required fees are paid by the estate, which means that, depending on the size of the estate, beneficiaries might see a significant chunk of their inheritance get swallowed up. In Ontario, probate fees are calculated on the value of the estate: For estates valued over $50,000, the fee will be calculated as $15 for every $1,000. So if you have an estate valued at $230,000, you would be facing $2,700 in fees (estate values are rounded up to the nearest thousand).
Therefore it’s no surprise that people are asking how they can avoid probate fees. The truth is, however, that if you’re going through probate, there’s no way to avoid the fees. There just isn’t.
However, here’s the good news: There are ways you can avoid going through probate, thereby saving yourself the probate fee. By simplifying your estate and giving away assets during your lifetime, you can minimize fees and even avoid probate altogether. Check out more here.
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