Ontario Probate Fees: How the Estate Administration Tax Works
Probate is the bill everyone plans around. It is rarely the largest one.
Ontario charges Estate Administration Tax when the Superior Court of Justice issues an estate certificate, the document that confirms an executor’s authority to deal with the deceased’s assets. There is no tax on the first $50,000 of the estate’s value and $15 for every $1,000 above it, about 1.5%. Assets that pass outside the estate, through a named beneficiary or to a surviving joint owner, are generally not counted. Reducing the tax is often reasonable. The harder question is whether a particular way of reducing it creates a larger cost somewhere else in the estate.
- The tax is $0 on the first $50,000 of estate value and $15 per $1,000 (or part of $1,000) above that.
- It is payable only if an estate certificate is applied for and issued, and it is based on the assets that certificate covers.
- Most debts cannot be deducted. A mortgage or other encumbrance registered against Ontario real estate can be deducted from that property’s value.
- The executor must file an Estate Information Return within 180 calendar days of the certificate being issued, even when no tax is owing.
- Beneficiary designations, joint ownership and multiple wills can each reduce the tax. Reducing probate does not necessarily reduce income tax, and some of these arrangements can bring tax forward or create other costs.
What probate is, and when the tax applies
The bank holding the account and the lawyer acting for a buyer of the house will often want the same thing before they act: proof that the person signing has legal authority over the deceased’s assets. In Ontario that proof is a Certificate of Appointment of Estate Trustee, still widely called probate.
The Estate Administration Tax is paid as a deposit when the executor applies, and it becomes the tax once the certificate is issued. If no certificate is applied for, or none is issued, no tax is owed. Whether one is needed depends on what the deceased owned and how it was held. Real estate in the deceased’s sole name usually requires one before it can be sold; a modest bank account sometimes does not, at the institution’s discretion. A will on its own does not trigger the tax.
Where a person has more than one will, the court can issue a certificate limited to the assets governed by one of them, and only those assets are counted. Estates valued at $150,000 or less can apply for a Small Estate Certificate through a simpler process. It carries the same legal effect but covers only the assets listed in the application, and the same tax calculation applies.
How the tax is calculated
The tax is based on the fair market value at the date of death of the assets the certificate covers. The value is rounded up to the next thousand dollars.
| Estate value covered by the certificate | Estate Administration Tax |
|---|---|
| $50,000 or less | $0 |
| $500,000 | $6,750 |
| $1,000,000 | $14,250 |
| $1,600,000 | $23,250 |
| $2,000,000 | $29,250 |
Included: real estate in Ontario (net of encumbrances registered against it), bank accounts including foreign accounts, investments, registered plans with no designated beneficiary, vehicles and vessels, business interests, insurance payable to the estate, and property of the deceased held in another person’s name.
Not included: life insurance and registered plans (RRSPs, RRIFs, TFSAs and registered pension plans) with a beneficiary designation, assets that pass automatically to a surviving joint owner, and real estate outside Ontario.
Not deductible: funeral costs, legal fees, credit cards, lines of credit, unsecured loans and debt on a vehicle. An estate with a $900,000 house and a $300,000 unsecured line of credit is valued at $900,000. If the same $300,000 were a mortgage registered on the house, the house would be valued at $600,000.
The Estate Information Return
Within 180 calendar days of the certificate being issued, the executor must file an Estate Information Return with the Ministry of Finance listing the estate’s assets and their values at the date of death. The return is required even if the estate’s value was under $50,000 and no tax was paid.
The return can need correcting later, and each situation has its own deadline. If the application used an estimated value, an amended return is due within 60 days of the actual value being provided to the court. If the executor finds that information was incorrect or incomplete within four years of the certificate, the amended return is due within 60 days of becoming aware of it. Property discovered after the certificate is issued follows a separate sequence: the executor files a sworn statement of its value with the court within six months of the discovery and pays any additional tax, then files an amended return within 60 calendar days after that statement is delivered. Correcting something already reported is different, and runs from the date the executor becomes aware of the error.
The Ministry can assess or reassess the tax within four years after it was due, and at any time where a required return was not filed or information was misrepresented. Failing to file, or filing false or misleading information, can result in a fine of at least $1,000 and up to twice the tax payable, imprisonment of up to two years, or both. Supporting records must be kept for four years. Most executors do this once in their lives, which is part of why the first year is harder than people expect.
Common ways estates reduce the tax
Beneficiary designations. Life insurance and registered plans with a named beneficiary generally pass directly to that person, outside the estate. It is the simplest arrangement and the one most often left out of date.
Insurance contracts for non-registered savings. A bank or brokerage account generally cannot name a beneficiary. Segregated funds and annuities are insurance contracts, so they can, and proceeds paid to a named beneficiary are not counted. They usually carry higher ongoing costs in exchange for their guarantees, discussed below.
Joint ownership. Property held jointly with right of survivorship usually passes to the survivor. Between spouses this is common and usually sound. With adult children it is less straightforward, for reasons covered in the next section.
Multiple wills. A secondary will can govern assets that can usually be transferred without a court certificate, such as shares of a private company, so that they are left out of the probate calculation. Ontario recognizes this through the limited certificate described above. It requires careful drafting by an estates lawyer and coordination with the company’s documents.
Gifts during life. Assets given away before death are not part of the estate. A gift of appreciated property, other than to a spouse, is generally treated as a sale at fair market value for income tax purposes, and the person giving it gives up control for good.
When avoiding probate costs more than it saves
The tax is about 1.5% of the value covered. Some of the arrangements used to avoid it put far more than that at risk. Reducing probate does not necessarily reduce income tax, and some strategies bring tax forward or create other costs.
A registered plan named to one child. A parent names one daughter as beneficiary of a $400,000 RRIF and leaves the rest of the estate equally to three children. The RRIF passes outside probate, but its value is generally included in the parent’s income in the year of death, and the tax is paid by the estate. If the estate cannot pay it, the CRA can collect from the person who received the RRIF. The two children who did not receive the RRIF end up sharing the cost of the tax on an account their sister alone received. The will said equal. The designation produced something else.
A joint account with an adult child. Adding a child to a bank account or to the title of a house is often done for convenience. In Pecore v. Pecore (2007), the Supreme Court of Canada confirmed that when a parent transfers property into joint names with an adult child without payment, the law presumes the child holds it in trust for the parent’s estate, unless there is evidence the parent intended a gift. That presumption can be rebutted, and the Court accepted that a parent can intend to give the right of survivorship while keeping control during life. Without clear evidence of that intention, though, the asset may belong to the estate after all. Ontario also counts property of the deceased held in another person’s name when valuing the estate, so the expected probate saving may not materialize. Depending on the circumstances, joint ownership can also expose the asset to a child’s creditors or family law claims. These are questions for an estates lawyer, decided on the facts.
A segregated fund bought mainly to avoid probate. Segregated funds are insurance contracts with real advantages. A named beneficiary receives the proceeds directly, usually sooner than an estate can distribute them and outside the estate administration process. The contract guarantees a portion of the amount invested at maturity or death, typically between 75% and 100% depending on the contract and reduced by withdrawals, and some contracts allow the guarantee to be reset as values rise. Depending on the beneficiary named and the circumstances, a contract may also offer potential protection from creditors, both during the owner’s lifetime and from claims against the estate. That protection depends on legislation and court decisions, varies by province and is never guaranteed, so it is worth confirming with a lawyer. Those guarantees have a cost, usually reflected in higher annual fees. How much higher depends on the contract, the guarantee level and the alternative: against a comparable advisor-managed mutual fund the difference can be modest, and against a low-cost self-directed portfolio it is larger. Moving an existing non-registered portfolio into one can also realize capital gains now that would otherwise have been deferred until death. On $300,000, the one-time probate saving is $4,500, so the real question is whether the contract’s other features are worth their cost over the years it will be held. When they are, the probate saving is a welcome addition. When they are not, it is rarely enough on its own.
An estate with the bill and no cash. Assets paid directly to a beneficiary or a surviving joint owner are generally no longer the executor’s to use, yet the income tax on the final return and the probate deposit remain the estate’s to pay. Even assets that stay in the estate may not be available right away: the deposit is due when the executor applies, and banks and investment firms often require the certificate before releasing an account or permitting trades. Naming the same people the will names does not produce the same result. The proceeds bypass the executor, so the estate has less on hand to pay its debts and the tax on the plan itself, the cost of that tax can fall differently than intended, and the money arrives on a different timetable from the rest of the estate. If what remains is mainly a house that cannot be sold until the certificate is issued, the executor can be left without funds at exactly the wrong moment. For estates that include a business, The Executor’s Problem covers that first year in more detail.
Probate is rarely the largest bill
For many estates, income tax on the final return is the larger amount. An RRSP or RRIF that does not pass to a spouse or another qualifying beneficiary is generally included in income in full in the year of death, and a balance of any size can push the final return into the highest brackets.
Assume the deceased’s other income for the year of death already exceeded $258,482, where Ontario’s top combined federal and provincial rate begins in 2026. Each additional dollar would then be taxed at 53.53%, so a $500,000 RRIF would add roughly $268,000 of tax. With less other income, part of the balance is taxed at lower rates and the total is lower. The figure shows scale, not what any particular RRIF would cost.
Capital gains are taxed differently. On a deemed disposition at death, half of the gain is included in income, so the top effective rate on a gain is 26.76% in 2026. A principal residence is generally exempt if it is properly designated on the final return. Assets that pass to a surviving spouse generally roll over without immediate tax, which defers the bill to the second death rather than removing it. The Coverage Estimator includes a module that estimates income tax on registered plans at death.
A plan that saves $10,000 of probate while leaving a tax bill several times larger unfunded has addressed the smaller problem.
An illustrative case
Hypothetical scenario for illustration only. It does not describe any actual person or Sheldrake Group engagement. Figures are rounded and simplified.
A widowed Toronto homeowner in her late seventies owns her home in her own name, worth $1.1 million with no mortgage. She has a $350,000 non-registered portfolio with an adjusted cost base of about $200,000, and a $150,000 RRIF that names her estate as beneficiary. Her will, drafted ten years ago, leaves everything equally to her two children and names her son as executor. She asks whether she should be doing more to avoid probate.
What the current arrangements accomplish. The will does what she wants. Everything passes through the estate and is divided equally, and the portfolio gives the estate liquid assets to meet its bills, although, like any account in her name alone, it may not be released until the certificate is issued.
The exposure. As things stand, $1.6 million would go through probate, for Estate Administration Tax of $23,250. Income tax is likely to be the larger item. The full $150,000 RRIF would generally be included in her final-year income, and the deemed sale of the portfolio would add half of its roughly $150,000 gain. The house would be sheltered by the principal residence exemption if designated. Depending on her other income for the year, the income tax on these amounts could be substantially greater than the probate cost.
The options compared.
| Option | Probate | What else changes |
|---|---|---|
| 1. Leave everything as it is | $23,250 | Nothing. The estate keeps $350,000 of liquid investments toward the tax and other bills. |
| 2. Name both children equally as beneficiaries of the RRIF | $21,000 | Both children remain equal beneficiaries, but the RRIF proceeds pass directly to them rather than through the estate. The estate remains responsible for the associated tax, so its available liquidity and the overall distribution must be reviewed. Needs a contingent beneficiary consistent with the will. |
| 3. Option 2, plus move the portfolio into a segregated fund naming both children | $15,750 | Realizes about $150,000 of gains now, half taxable this year. Assumes, for illustration only, a fee difference of 0.55% a year, about $1,925. This is not a typical market comparison; the actual difference depends on the contract and the portfolio it replaces. Leaves the estate with almost nothing liquid to pay the income tax and the probate deposit. |
| 4. Add a child as joint owner of the house or the portfolio | Uncertain | Raises the Pecore question, gives up sole control, and may not reduce the probate value if the asset is found to belong to the estate. If a gift is intended, it can also trigger tax now on the share transferred. |
The conclusion. On these assumptions, the most appropriate change is to name both children equally as RRIF beneficiaries. This reduces the probate cost by $2,250 while preserving the intended equal distribution, provided the estate retains sufficient assets to meet its obligations. Here it does: the portfolio stays in the estate as a liquid source for the income tax and other bills. Timing still matters. The probate deposit is due when the executor applies, and the portfolio’s institution may not release funds until the certificate is issued, so the family should know in advance how the deposit and early expenses will be covered in the meantime. Option 3 would save another $5,250 of probate once, at the price of tax brought forward, a fee difference that, at the assumed rate, would erase the saving in under three years, and an executor without ready funds. She has no stated need for a guarantee on her savings, so a segregated fund would be answering a question she has not asked. Her lawyer reviews the will, which is ten years old, and her accountant estimates the final-year tax so the children know roughly what to expect.
When a different answer might fit. If she had wanted a guaranteed floor under part of her savings for its own sake, a segregated fund could be worth considering, with the probate saving as a secondary benefit. If the children wanted to keep the house and the estate’s liquid assets fell well short of the tax, the conversation would turn to how that gap could be funded, which is a separate analysis.
How Sheldrake approaches probate decisions
Probate is reviewed together with income tax at death and the estate’s cash position, never on its own. Each designation and each title is read against what the will says, and any change is weighed by its full cost: tax brought forward, fees, control given up and the executor’s access to funds. Changes to designations or ownership are coordinated with the client’s lawyer so the arrangements and the will continue to agree. The broader approach is described on the estate planning page.
Common questions
How much is probate in Ontario?
Nothing on the first $50,000 of estate value, then $15 for every $1,000 or part of $1,000 above that. An estate of $1 million covered by a certificate pays $14,250.
Is life insurance subject to probate in Ontario?
Not when a beneficiary other than the estate is named. Insurance payable to the estate is included in its value.
Are RRSPs, RRIFs and TFSAs subject to probate?
Not when a beneficiary or successor holder is named. Without one, they form part of the estate and are counted. Avoiding probate does not change the income tax treatment of an RRSP or RRIF at death.
Can debts reduce the estate’s value for probate?
Generally not. Only an encumbrance such as a mortgage or lien registered against Ontario real estate can be deducted, and only from that property’s value.
Do segregated funds avoid probate?
When a beneficiary is named, the proceeds generally pass directly to that person outside the estate. Whether a segregated fund is suitable depends on the value of its guarantees relative to its costs and on the person’s wider objectives.
When is the Estate Information Return due?
Within 180 calendar days of the estate certificate being issued, even if no tax is owing.
- Ontario Ministry of Finance, Estate Administration Tax: rates, valuation, included and excluded assets, deductions, amended returns, penalties and reassessment.
- Ontario Ministry of Finance, Guide: Estate Information Return: 180-day filing and subsequently discovered property.
- Estate Administration Tax Act, 1998, Estates Act and O. Reg. 110/21, Small Estates.
- Ontario, Apply for probate of an estate.
- Canada Revenue Agency, Taxable capital gains on property, investments and belongings: deemed disposition, spousal transfers, principal residence.
- Canada Revenue Agency, Death of a RRIF annuitant and Amounts paid from an RRSP or RRIF upon the death of an annuitant.
- PwC Canada, Ontario Budget 2026 tax highlights: 2026 top combined rates and threshold.
- Pecore v. Pecore, 2007 SCC 17, Supreme Court of Canada case information (file 31202).
This material is provided for general educational purposes and is not individualized legal, tax, accounting, investment or insurance advice. The examples and strategies discussed may not be appropriate in every circumstance. Tax and legal outcomes depend on individual facts, ownership, policy terms and legislation in effect at the relevant time, and may change. Insurance recommendations should be based on an individual needs analysis and consideration of available alternatives, product terms, costs, guarantees and risks. Where tax, accounting or legal matters are involved, Sheldrake Group works alongside the client’s qualified professional advisers.
Sheldrake Group Inc. O/A Sheldrake Group is a licensed life insurance agency in Ontario. Information on this page is general in nature and is not tax, legal or insurance advice.