Aug 13, 2021
What assets are not included in probate?
In some provinces, the executor might even need to provide a list of assets from the estate to the probate court before they can even apply for probate.
One of the biggest questions that tend to come up when dealing with estate settlement issues is invariable: How much is this going to cost? Settling an estate, particularly if you have to go through probate, can quickly get expensive and eat away at the inheritance meant for the deceased’s beneficiaries. However, while it’s possible to reduce costs by taking a more proactive approach instead of relying on professionals for everything—looking at you, estate lawyers, and accountants—, there are simply some costs you won’t be able to avoid if you’re going through probate: Probate fees, also known as an estate administration tax, will be a cost you’ll have to factor in. These fees are collected by the provincial or territorial government in which the estate is being probated.
We regularly share relevant information about wills and estates.
In Ontario, probate fees are dependent on the size of the estate. Here’s the breakdown:
The first $50,000 of an estate is not taxed. That means that if an estate’s assets amount to $50,000 or less, your probate fees are going to be very agreeable. This is also one of the reasons as to why savvy estate planners try to simplify their estate as much as possible in their lifetime so that the probate process is quicker and cheaper. Of course, the best way to avoid fees is to avoid probate completely.
But back to probate fees. Once the estate’s value tops $50,000, fees start to kick in. Ontario will charge $15 on every $1,000 over those initial $50,000.
So let’s say an estate is valued at $250,000. Since the first $50,000 doesn’t count (for probate fee purposes), you’re left with $200,000. So divide 200,000 by 1,000, which equals 200. Multiply that by 15, and you’re left with: $3,000, the amount you’d have to pay in probate fees.
If you’re bewildered by the probate process and wondering how much you’ll have to pay, then come speak to us. ClearEstate will provide you with step-by-step guidance and tips on how to navigate the probate process quickly and efficiently.