Ontario estate questions, answered plainly
The questions families ask first, with the actual numbers and where they come from. No jargon, and nothing that needs a follow-up call to make sense.
Estate rules
What Ontario decides when you have not, and what writing it down costs.
3 guides
What happens if you die without a will in Ontario
If you die without a will in Ontario, the Succession Law Reform Act decides who inherits, not you. A married spouse receives the first $350,000 of the estate, called the preferential share, and anything above that is divided between the spouse and the children. A common-law partner receives nothing automatically, however long you were together.Read the guideDo common law partners inherit in Ontario
No. In Ontario a common law partner has no automatic right to inherit when their partner dies without a will, however long they lived together and whether or not they had children. Only a legally married spouse receives the preferential share. Ontario differs from British Columbia, Alberta and Saskatchewan on this, which is why so many people have it wrong.Read the guideHow much a will costs in Ontario
A straightforward Ontario will drawn by a lawyer usually costs a few hundred dollars, and a pair of mirror wills for a couple costs more than one but less than two. Price rises with complexity: a trust for a minor, a blended family, a business, or property outside Ontario. A will kit is cheaper and is where most of the problems in this office begin.Read the guide
Probate
What the court process costs, when it falls due, and how long it runs.
2 guides
What probate costs in Ontario
Probate cost in Ontario is the Estate Administration Tax. There is nothing to pay on the first $50,000 of the estate, and $15 for every $1,000 above that. On an $800,000 estate the tax is $11,250, and it is generally payable when the application is filed, which is before anyone has received a penny.Read the guideHow long probate takes in Ontario
Getting the Certificate of Appointment of Estate Trustee in Ontario commonly takes about three to six months from filing, and the estate is rarely finished at that point. Settling one usually runs closer to a year, and longer where there is property to sell, a business, or a dispute. The Estate Administration Tax is payable when the application is filed, which is before any of that money has been released.Read the guide
Tax and registered accounts
Where the tax actually lands, and which account produces it.
2 guides
Is life insurance taxable in Canada
A life insurance death benefit paid to a named beneficiary is generally not included as income in Canada, so the person who receives it is not taxed on it. Tax appears elsewhere: on the growth inside some permanent policies if they are cashed in during your lifetime, and on the estate itself, where a benefit paid to the estate rather than to a person joins the value probate is calculated on.Read the guideWhat happens to an RRSP when you die
Unless it rolls over to a spouse, a common-law partner, or in some cases a financially dependent child, the full value of an RRSP or RRIF is generally included as income on the final tax return. For many Ontario families that one line is the largest bill the estate faces, and it is owed by the estate even when the account itself went straight to a named beneficiary.Read the guide
A guide is not a plan
Ehsan Khandaker is a licensed financial and estate planner, CLU and CHS. He is not a lawyer and does not draft documents. This page is general information about Ontario rules, not guidance about your own situation, and a will is drawn up by a lawyer.
The work itselfWhat planning actually involves, service by serviceA guide answers the question. What your own estate needs is a conversation, and the first one is twenty minutes.