An Estate Trustee’s Guide to Property Sales in Ontario in 2025
When an individual passes away and leaves real estate in Ontario, the process of selling that property differs from a standard real estate transaction. If you have been appointed as an estate trustee (also known as executor or personal representative), it is essential to understand the probate requirements in order to fulfill your duties as outlined in the deceased’s will or, in the absence of a will, according to Ontario intestacy laws.
Understanding Probate in Ontario
Probate is the process where the Ontario Superior Court of Justice validates a will and issues a Certificate of Appointment of Estate Trustee. This certificate bestows the legal authority to manage the assets of the deceased, settle debts, and distribute the estate according to the deceased’s wishes. The process can take up to 12 months, and without it, most institutions will not allow access to or transfer of assets, even if you are named as estate trustee in the will.
How to Calculate the Estate Administration Tax
The estate administration tax is based on the total value of the estate. For instance, an estate valued at $850,000 would be taxed as follows:
- For amounts under $50,000, no tax will be applied.
- For amounts over $50,000, a fee of $15 for every $1,000 is applied.
Calculation:
- $850,000 – $50,000 =$800,000
- $800,000 รท $1,000 = $800
- $800 x $15 = $12,000
The total amount of $12,000 is to be paid to the Minister of Finance.
Duties of an Estate Trustee During a Sale
Prior to listing the property, the trustee must confirm that they have the legal right to sell. They should carefully review the will to confirm that there are no restrictions on the sale and that no specific beneficiary has been bequeathed the property. If the will stipulates that the property is to be given to a specific beneficiary, the trustee may require their consent or court approval before proceeding with the sale.
The trustee is legally obligated to obtain the property’s fair market value. This process typically involves obtaining a professional appraisal or comparative market analysis from a qualified real estate agent. The property should be marketed appropriately and sold at a reasonable price; otherwise, beneficiaries could challenge the sale for undervaluing the asset.
The estate trustee is responsible for ensuring the property is properly maintained and insured until the sale is completed. They are also responsible for any ongoing expenses, such as property taxes, utilities, maintenance costs, and condominium monthly expenses, where applicable.
Conclusion
While the probate process can be lengthy, it is essential for providing legal protection for both the estate and potential buyers by confirming your authority to act on behalf of the deceased. Working closely with an experienced legal and real estate professionals throughout this process not only ensures compliance with Ontario’s estate laws but also helps maximize the property’s value for the beneficiaries. For intricate estate matters, it is imperative to consult with a lawyer to ensure compliance with all statutory requirements. Should you require assistance, we invite you to contact our office to arrange a consultation with one of our lawyers.
The information provided on this website is intended for general informational purposes only and should not be construed as legal or tax advice. Laws and regulations vary by jurisdiction and are subject to change. We strongly encourage you to consult with a qualified legal professional before making decisions based on any content found here. Please note that accessing or using this website does not establish a solicitor-client relationship. If you require legal assistance, please contact our office to speak with one of our lawyers.