Probate fees in Ontario - more formally known as the estate administration tax is a fee that is paid once the estate trustee applies for the certificate of appointment.

Set by the Estate Administration Tax Act, 1998 S.O. 1998, Chapter 34 - the probate fees in Ontario as of 2024 are as follows:

• $0 NO probate fee for the first $50,000 of the estate assets

• $15 fee for every $1,000 of the total gross value of the estate above $50,000 (This can also be worked out to 1.5% of the estate’s gross value over $50,000)

The probate fee is charged to the estate, but the responsibility to pay the tax is ultimately upon the executor of the will to ensure that the tax is paid.

If this calculation is still unclear, ClearEstate’s Ontario Probate Fee Calculator is here to remove all the guesswork based on the value of the estate.

This will give you a quick snapshot of the probate tax you should expect to pay in Ontario.

In Ontario, the Estate Administration Tax (EAT) must be paid in full to the provincial government once the probate application is filed. The tax is usually paid by certified cheque or money order and is sent to the Minister of Finance Ontario.

In the case where an estate isn’t as liquid but is asset rich, the estate trustee or beneficiary may be open to “loaning” the probate fee payment to the estate.

In this case, the loan is repaid for by the estate to the estate trustee after probate has been completed. Either way, it is important to budget for the EAT when planning for probate fees.

To determine how much the estate owes in probate fees, the estate trustee must determine the gross value of the estate.

This is done through a proper inventory of estate assets and valued by an impartial 3rd party appraiser.

Estate assets must be valued at fair market value at the date of death of the decedent.

Assets subject to probate in Ontario

• Cash
• Bank accounts
• Single-owned investments, shares, bonds, RRSP’s, TFSA's, RRIF's
• Personal property
• Life insurance policies
• Retirement accounts
• Vehicles, boats, and other watercraft

Are principal residences exempt from probate tax?

It's a common question: are principal residences subject to probate tax in Ontario? Principal residences in Ontario still count towards the total estate's value, and as such, are subject to probate fees. They may also be subject to capital gains tax upon administering and final distribution of the estate.

However, some exceptions may apply in certain cases. For example, if the deceased owned the property jointly with another person, the surviving owner may be able to avoid probate entirely. It's always best to speak with a qualified legal professional to determine what taxes and fees may apply in your specific case.

Assets exempt from probate

According to the attorney general of Ontario, these are the assets not subject to probate;

• Property with joint ownership with another person
• Real estate/property owned outside of Ontario
• Joint accounts with a beneficiary designation
• Investment and savings accounts with a beneficiary designation - RRSP’s, TFSA's, RRIF's
• CPP Death benefits
• Property held in a living trust

If the estate has debts, can this decrease the gross value of the estate?

When determining the value of the estate, estate debts, loans and liens do not deduct the value from the estate.

For example: if the estate has property valued at around $950,000 but has a mortgage with a remaining balance of $525,000 - the asset is still valued at $950,000 rather than $425,000.

Here are some examples of non-deductible estate accounts:

• Credit card debt, personal debt, margin debt
• lines of credit
• car loans
• student debt/loans
• investment loans
• tax arrears

Ontario has some of the highest probate fees in all of Canada. With fees totaling up to 1.5% of the value of an estate, this can prove to be costly for estates of all sizes.

However, there are a few ways to reduce these costs.

• create a living trust, which can help to avoid probate altogether.
• transfer ownership of certain assets before death, such as RRSPs or life insurance policies.
• Finally, it is also possible to simplify the value of your estate by making charitable donations.

While probate fees can be significant, there are several strategies that can help to minimize them. By taking some time to plan ahead, you can ensure that your loved ones are not faced with an overwhelming financial burden after your death.

You can also read our full in-depth post about avoiding probate in Ontario: here

The estate trustee has 180 days from the date of receiving the Certificate of Appointment of the Estate Trustee to file the return with EAT.

The purpose of this return is to provide a detailed listing of all assets of value in the estate so that you accurately pay the estate administration tax.

Failure to file the estate information return within 180 days, or to file a false EAT return can incur penalties.

Inexperienced estate trustees should work with an accountant or an experienced estate professional to accurately complete the return and avoid penalties.

In most cases, probate will most likely be required.

If the estate has any assets owned solely by the decedent, that asset will most likely be required to go through probate.

While avoiding probate in Ontario is rare, there are certain instances where this legal process is not necessary. One instance where probate is not required in Ontario is when the estate is passing from “the first spouse to die to their partner.”

The deceased must have named their spouse as the beneficiary on all investment, banking, and retirement accounts as well as life insurance policies and pension plans and created a joint right of survivorship for the property. In this case, there would be no estate to evaluate as all assets have already been distributed to either spouse.

If the estate is passing from one generation to another (parent to children), by contrast, then the probate process is typically required in Ontario. Finally, if a financial institution where funds are held demands probate in Ontario, then the probate process is required.

The probate fees in Ontario can be complex to understand and calculate. However, with the help of our estate administration tax calculator, you should be able to get a good estimate of how much probate fees the estate is subject to.

It’s important to remember that these fees may change depending on the value of the assets involved in the calculation and that some assets are exempt from probate. If you have any questions about probate fees or how to pay them, it’s best to speak with an estate professional for advice.

Moving Forward With Your Loved Ones Estate

Probate fees in Ontario can be challenging and expensive, with rates up to 1.5% of the estate's value over $50,000. From identifying which assets are subject to probate to filing the Estate Information Return within 180 days, the process requires careful attention and legal understanding.

While some strategies exist to reduce these fees, such as living trusts, these often need to be set up well in advance. For most people facing probate, professional guidance is key to managing costs and ensuring a smooth process.