Probate

What is Probate?

Probate is a court procedure that is used to validate the estate of a deceased person and the appointment of a person who will act as an executor for the deceased’s estate. Probate involves fees and can take years to complete. The province of Ontario charges and Estate Administration Tax on the estates of deceased individuals and this tax has come to be known as a “probate fee.”

Probate Fees?

The Ontario Estate Administration Tax, or probate fee, is assessed on the total value of a deceased individual’s estate, providing the estate’s worth exceeds the sum of $50,000. The actual amount of the tax is determined by calculating the financial worth of all assets belonging to the deceased at the time of death. Such items may include:

• Property owned within the province (minus any encumbrances)
• Automobiles, motorcycles, boats and other conveyances
• Bank account funds
• Stocks, bonds and other eligible investments
• Any property or properties owned elsewhere

Other Fees are likely

Once an estate goes into probate it is almost always the case that a lawyer must be engaged to assist with the process, and this adds additional fees that the estate must pay. Probate may also necessitate the use of an accountant, a valuator or other professionals and there are costs to advertise for creditors and locate beneficiaries in some cases. These aspects of the probate process all create lengthy delays and add costs that reduce the ultimate value of the estate.