
After a loved one passes away, you may face the necessary task of tending to their affairs at the same time you are grieving. Our lawyers know that estate administration often comes at a trying time, and we will work with you to understand nuances, navigate complications and find the right solutions.
What is estate administration?
An estate refers to the assets and debts that someone owns at the time they pass away. Estate administration is the process of assessing and handling their assets and liabilities.
What happens during estate administration?
The process of administering an estate – a.k.a. “probate” – depends on whether the deceased had a valid will in place. If they did, the estate is typically distributed according to their instructions. Without a valid will, the process is more complex and can begin by an estate “trustee” applying to, or being appointed by, the court. The trustee is then in charge of administering the estate, usually with the help of an estate lawyer.
What is probate?
In Ontario, probate is a process where the Superior Court of Justice approves someone to act as an estate trustee. Probate is not always needed and usually comes down to the type of assets involved. Read more on how to apply here.
What is an executor?
An executor is the person in charge of managing the estate. They are obligated to gather, protect and distribute the estate according to what the will says.
What’s the difference between an executor and a power of attorney?
While an executor handles affairs after someone passes away, a Power of Attorney (POA) enables someone to act on another’s behalf and manage affairs while they are alive.
How much are estate taxes in Ontario?
Ontario’s Estate Administration Tax applies to estates valued over $50,000. It’s calculated as $15 for every $1,000 of the estate value.
How long does it take to administer an estate in Ontario?
The answer varies greatly, depending on factors such as whether a probate is needed and what jurisdiction is involved. Some courts have tremendous backlogs; it can take several months to even be appointed estate trustee (i.e. receive probate).
How much does an estate have to be worth to go to probate in Ontario?
No set amount determines if an estate must be probated. Instead, it’s about what assets are held, how the assets are owned, the requirements of the financial institutions holding the assets, and the specific needs of the estate.
How many administrators can be on an estate?
There is no rule about how many people can act as administrators, a.k.a. executors or estate trustees. We would suggest, though, that too many individuals can slow down the estate administration process.
Do all estates go to probate in Ontario?
Probate is not always needed to administer an estate. It ultimately depends on the type of assets and how those assets are owned. In general, if a loved one owned real property or assets with a financial institution, probate is likely required.
How do lawyers help in estate administration?
We can provide a wide scope of services that may include:
- Applying for Certificate of Appointment of Estate Trustee
- Cataloging and identifying assets
- Guiding asset appraisals
- Calculating estate administration tax
- Preparing and sending estate documents
- Helping settle outstanding debts
- Providing advice regarding distribution of assets
- Drafting distribution statements and releases
- Guidance with distributing assets to beneficiaries
- Preparing a passing of accounts
- Helping apply for a Certificate of Clearance
- Helping file for an Estate Information Return
- Helping publish a Notice to Creditors