What Happens After Probate is Granted in Ontario?
When dealing with the administration of an estate in Ontario, probate - formally known as obtaining a Certificate of Appointment of Estate Trustee - is often just the first significant step. Many individuals wonder: what exactly happens once probate is granted? This article will clearly explain the key responsibilities and steps that follow the probate process in Ontario.
Collecting and Securing Estate Assets
Once probate is granted, the appointed Estate Trustee (formerly known as the executor or executrix) officially gains the legal authority to manage and distribute the deceased’s estate. Their immediate responsibility is to identify, collect, and secure all estate assets. This can include:
Bank accounts
Real estate properties
Investment portfolios
Personal property (vehicles, jewellery, artwork)
Insurance proceeds payable to the estate
Example: If John from Windsor had bank accounts and investments at several financial institutions, his Estate Trustee must present the probate certificate to each institution to release those assets into the control of the estate.
Paying Debts, Taxes, and Expenses
With assets secured, the Estate Trustee must now address the estate’s financial obligations. This includes:
Debts and Liabilities: Outstanding debts such as credit card balances, mortgages, or personal loans must be paid.
Final Tax Returns: Estate Trustees must file the deceased’s final personal income tax return and pay any outstanding taxes from the estate’s funds. This is crucial because the Canada Revenue Agency (CRA) requires all taxes to be settled before the final distribution of the estate can occur.
Estate Administration Tax: Ontario's estate administration tax (commonly called probate fees) based on the value of the estate would typically have been paid during the probate application process. However, the Estate Trustee may still need to address any reassessments or discrepancies.
Managing Estate Assets Responsibly
The Estate Trustee has a fiduciary duty to manage the assets of the estate responsibly. This means making prudent investment decisions and ensuring assets are protected and preserved until distribution. Estate Trustees may sometimes need professional advice or services, such as hiring investment advisors or property managers.
Interim Distributions
Depending on the complexity of the estate and the time required to finalize administration, Estate Trustees might make interim distributions to beneficiaries. This can help ease financial burdens for beneficiaries, especially if the final estate settlement will be prolonged.
Preparing Estate Accounts
Estate Trustees must maintain accurate records of all estate transactions. This includes a detailed accounting of:
Income received (e.g., rental income, dividends, interest)
Expenses paid (e.g., funeral costs, legal fees, estate administration expenses)
Interim and final distributions to beneficiaries
Beneficiaries are entitled to review these accounts and raise questions or concerns before providing their approval.
Finalizing and Distributing the Estate
Once debts, taxes, and expenses are settled, and all administrative tasks are complete, the Estate Trustee proceeds to distribute the estate according to the deceased’s will (or according to Ontario’s intestacy laws if no valid will exists). Distribution involves transferring titles to real estate, disbursing funds, and transferring assets in kind to beneficiaries.
Example: If Sarah from LaSalle specified in her will that her cottage property should pass to her daughter, the Estate Trustee will prepare the necessary legal documentation to transfer title of that property to Sarah’s daughter.
Closing the Estate
The final step involves formally closing the estate. This includes obtaining clearance certificates from the CRA, ensuring that no further tax obligations remain outstanding. Once clearance certificates are received, and final estate accounts are approved, the Estate Trustee's duties conclude.
Need Assistance with Estate Administration?
Navigating post-probate responsibilities can be overwhelming. If you're an Estate Trustee needing guidance or assistance, contact Mariotti Law Group today. Our experienced estate lawyers in Windsor and Essex County are here to help simplify and guide you through every step of the process.
Disclaimer: This article is for informational purposes only and does not constitute legal advice or create a solicitor-client relationship. For personalized advice, please consult Mariotti Law Group directly.