Probate in Ontario: When It's Required & How Estate Administration Tax Works

When Is Probate Required?

Probate is not always legally required, but third parties (banks, land registry, brokerages) typically require it when:

• The deceased owned real estate solely in their name (not as joint tenants)
• The estate holds financial accounts above institutional thresholds (often $50,000–$100,000)
• The will is being challenged or there is a dispute among beneficiaries
• There is no will (intestacy) — the estate trustee must prove their authority
• The deceased held shares in a private corporation

Estate Administration Tax (EAT)

Ontario's Estate Administration Tax Act imposes a tax on the value of the estate passing through probate:

Example: An estate worth $800,000 — EAT = ($800,000 − $50,000) ÷ 1,000 × $15 = $11,250

The estate value includes real property at fair market value, bank accounts, investments, vehicles, and personal property — but excludes life insurance payable to a named beneficiary, RRSPs/RRIFs with named beneficiaries, and jointly held property passing by right of survivorship.

Assets That Pass Outside the Estate (No Probate)

• Joint tenancy property — automatically passes to the surviving joint tenant
• Designated beneficiary assets: RRSPs, RRIFs, TFSAs, life insurance, pension plans with named beneficiaries
• In-trust accounts for minors with proper trust documentation

Estate planning that maximizes assets passing outside the estate can significantly reduce EAT. However, improper joint tenancy arrangements can trigger unexpected tax consequences — always get advice before restructuring ownership for this purpose.

The Application Process

1. Prepare the Application: Complete Ontario court Form 74A (with will) or 74B (without will), list all estate assets and values.
2. Pay the EAT: File a sworn estate information return with the Ministry of Finance and pay the tax — upfront, before the certificate is issued.
3. File at the Superior Court: Submit the application, original will, death certificate, and supporting documents.
4. Receive the Certificate: Once approved, the court issues the Certificate of Appointment — present this to financial institutions, the land registry, etc.

Simplified Procedures for Small Estates

As of April 2021, Ontario offers a simplified court procedure for estates with a total value of$150,000 or less. This streamlined process uses Form 74.1A and requires less documentation — significantly reducing cost and complexity for small estates.