Thank you!”, “Thank you for your professional advice and lawyering while I was planning my will, all accompanied with your patience and a sense of humour.”, “Ed is a "straight shooter" who tells it like it is and helps you make the best possible decisions in your circumstances. Ajax | Aurora | Peterborough | Barrie | Barrhaven | Bowmanville | Brampton | Brantford | Burlington | Cambridge | Chatham | Clarington | Cooksville | Durham Region | Kanata | Etobicoke | GTA | Guelph | Halton Region | Hamilton | Kawartha | Kingston | Kitchener | London | Markham | Milton | Mississauga | Muskoka | Nepean | Newmarket | Niagara | North York | Oakville | Ottawa | Orleans | Peel Region | Pickering | Richmond Hill | Sault Ste Marie | Scarborough | Saint Catherines | Stouffville | Sudbury | Thornhill | Thunder Bay | Toronto | Unionville | Uxbridge | Vaughan | Waterloo | Whitby | Windsor | York | Ontario, Shares, bonds, trust units, options, mutual funds, TFSAs, RRSPs, RRIFs, vehicles such as cars, trucks, boats, motorcycles, trailers situated in or outside Ontario. When a person dies they may leave behind belongings, real estate and other assets which is called their estate. Individually-titled real estate 3. Personal propert… Clients value Ed's knowledge and his straightforward approach and emphasis on practical, cost-effective solutions. Those institutions include banks and the land titles office. These consist of the following: 1. RESP is not required to be probated if both partners are joint subscribers of the plan, such as your spouse or common-law partner. Non-probate assets can streamline the process of passing of assets to your heirs. RESP is an asset which, until paid to the Beneficiary for school purpose, remains the asset of the estate. If the deceased has assets, then the question would arise, what … You cannot avoid the probate process by not having a Will. What is probate? There is no legal requirement or need to go through probate if there are no assets to probate. He is the author of six books on Estates and Trusts Law as well as a contributor to many publications, including Compensation and Duties of Estate Trustees, Guardians and Attorneys. What Assets Are Subject To Probate. This information is important for clients who are, or will be, executors of Ontario estates. Jointly owned assets like joint bank accounts pass to the surviving joint owner by right of survivorship. You need to file a Survivorship Application to transfer the real estate. Assets that require probate to be administered (for example real estate) are dealt with in the primary Will and probate fees are only to be paid on the value of those assets. Probate is a process when the court issues a Certificate Appointment of Estate Trustee. Assets that are held by the decedent and another party in joint tenancy are not probate assets subject to estate administration proceedings in probate court. I edit Carswell’s legal guide Compensation and Duties of Estate Trustees, Guardians and Attorneys. Assets that are titled individually in the decedent’s name and don’t have a designated beneficiary or rights of survivorship become “locked” upon the owner’s death. In practice, given this scenario with the bank, almost all Canadian Wills are probated. Assets owned jointly are governed by special statutes that control transfer of ownership after death. For probate application, you need to base the value on the asset’s at fair market value at the time of death. There are three basic types of joint ownership: Rights of Survivor, Tenants by Entirety, and Tenants in Common. The probate process involves various expenses; for example, court fees and lawyer’s fees. Not every type of asset or property is subject to probate, and an important part of estate planning involves understanding which assets are and aren’t subject to probate. The concept of probate is court validating that the will in question is the actual last will and testament of the deceased, therefore if an Executor goes to the bank to transfer bank account the Bank Representative would not know if the Will presented at the Bank was the actual and Last Will & Testament of the Deceased. In Ontario that means probate fees, as the province does not impose estate taxes, death duties or succession fees. In Ontario the fees are $250 for the first $50,000 of your estate and $15 for each additional $1,000 with no upper limit. This is not limited to married couples. Canadian Probate Fee Calculator Probate fees (or estate administration tax) is calculated on the total value, in Canadian dollars, of a deceased person's estate. deal with even one asset, then in most situations probate fees must be paid on the value of all assets that pass through the estate. Assets held in a joint bank account and passing by survivorship flow outside of the estate and are not subject to probate fees. 218 Export Blvd, Unit 105, Mississauga, Ontario L5S 0A7. Asset valuations that DO NOT need to be included: real estate holdings outside the province of Ontario; assets held in joint ownership WITH a right of survivorship; registered assets (RRSPs, RRIFs, TFSAs) with a named beneficiary; insurance policies with a named beneficiary; CPP death benefits; Asset valuations that DO need to be included: Hence Probate is mandatory if the deceased has any assets. These costs need to be included in the probate costs. Dear Ed, It is a discretion of the bank to transfer funds without Probate. So what is probate and probate fees? Rights of Survivor:As the name implies, under a rights of survivor statute, the joint owner who survives automatically owns the entire remaining account or asset. I've personally seen the "magic" he can work in an estate and recommend him without reservation to anyone who wants an iron clad will or estate advice and management that saves money, frayed nerves and friendships.”. Where required, provincial governments grant 3. Almost all assets are subject to probate in Ontario; therefore, probate is required in most cases if the deceased has assets. There is no legal requirement or need to go through probate if there are no assets to probate. Probate fees (which in Ontario are called Estate Administration Tax) and income tax are not the same thing. Thank you for all your wisdom and kindness throughout the process of settling Ann’s Estate. The less property you have in your estate when you die, the lower your probate fees. These assets may also create income tax liabilities for the estate that you must consider. Ontario has a new probate tax system. These assets can include certain kinds of jointly owned property and assets with named beneficiaries. (In fact, probate fees aren’t deductible by the estate for income tax purposes.) Insurance proceeds paid to a named beneficiary other than ‘Estate’. 3. If you are married and acting as executor for your spouse, you will be relieved to know this. Certified Specialist, Estates and Trust Law, “I want to thank Ed and his firm for getting me through a very difficult time. If RESP is under a single subscriber’s name, then RESP would need to be probated. If a financial institution (bank) where funds are held demands probate, then probate is required . See section 4 (1) of the Estate Administration Tax Act, 1998 for details. The assets would not be subject to probate. Without a grant of probate, the institutions that hold or register your assets are unlikely to deal with your executor. Ed is a thorough, responsive estates lawyer who I would recommend to anyone when needing a will or dealing with estate issues. Edward Olkovich Probate is the legal process by which assets and property owned by a deceased person pass to a living beneficiary. The EIR will be subject to an audit by the ministry, so estate trustees will need to be able to substantiate their valuations. I am a Toronto estate lawyer and Certified Specialist in Estates and Trusts Law. Not all assets must go through probate. The probate process and its subsequent fees vary depending on the province where you live and hold assets. There is no legal requirement or need to go through the process of probate if there are no assets to probate. Ed is located locally @ Jane and Bloor. Depending on your province of residence, probate fees can be charged as a flat rate or as a percentage of your assets, not your income. Ontario’s provincial estate administration taxes are probate taxes. This need to substantiate valuations could add additional administrative expense. Select the Province/Territory, then enter the total value of the estate. Probate is a process that confirms executor authority to distribute assets of a deceased’s estate. Probate is the process by which a court confirms that a will is valid. Assets that pass by beneficiary designation do not need to be probated such as Jointly owned bank accounts, RRSPs, RRIFs, TFSAs with a named beneficiary other than ‘Estate’. Ontario collects this estate administration tax when a will is submitted to be certified by a court. Real estate held as tenants in common 4. I have handled estate disputes and probate problems since 1978. Designated assets such as pensions, RRIFs and RRSPs with named beneficiaries (other than the deceased’s estate) bypass probate. Keep in mind that there may be multiple joint owners with rights of survival. All our appreciation always!”. Read more about Estate Information Returns (EIRs) here. What assets are excluded from Probate? Ontario has, for years, allowed a probate-saving practice to develop. If you cannot afford to pay the tax at the time you are filing your application for a certificate of appointment of estate trustee, you can bring a motion before a judge asking to pay the tax later when you have access to the assets of the estate. Almost all assets are subject to probate in Ontario; therefore, probate is required in most cases if the deceased has assets. The following list of assets are subject to probate in Ontario? Types of Probate Assets. You should speak with your lawyer about … Assets that are typically subject to probate include: 1. The only assets are bank accounts or investments. My brother-in-law had a terminal illness and Edward had us devise his Will to minimize taxes and problems. 2. The estate is small, All beneficiaries agree, There is only one beneficiary, or. Almost all assets are subject to probate in Ontario; therefore, probate is required in most cases if the deceased has assets. Individual bank and brokerage accounts 2. The person appointed as an Estate Trustee has the legal authority to deal with the deceased’s estate. Unless probate is opened and a personal representative to the estate is appointed by a judge, the assets will remain locked in the decedent’s name indefinitely. Financial institutions are not obliged to waived probate under any circumstances. The common feature of these assets is that they were owned at one … The valuation of all assets is used to calculate the Estate Administration Tax. The process involves fees. Ideally, all valuation should be supported by proper documentation such as statements or opinions from an appraiser. This allows for a person to use two wills. One will covers assets that can be transferred without probate. If the bank is willing to transfer funds, the bank would required suitable indemnities & Personal Guarantees along with original or notarial copy of the will. These assets may also create income tax liabilities for the estate that you must consider. The only exceptions are those when the entire estate is held jointly, and the assets are passing to the joint asset holder. Designated assets like life insurance, an RRSP, or RRIF pass to the beneficiary and bypass probate, unless payable to the estate. Certain assets are not included in the probate process: 1. Will miss the laughs and stories you tell so well. Non-probate assets are assets that go directly to your heirs instead of being subject to the probate process. The probate court application requires confirmation under oath of the total value of the estate, and fees are calculated on those values. Québec does not levy probate fees at all, requiring only that non-notarized wills be authenticated by their courts. This process is for assets and property that require a court’s supervision in order to be disbursed. Probate Rules for Ontario – the Estate Information Return ... broken down between real estate and non-real estate assets. Interestingly, we have found if there was a single bank account with a minimum balance, some banks may or may not be willing to transfer the funds. Every Province and Territory in Canada has its own formula for calculating the probate fees payable. The more common reason for avoiding probate, though, relates to the fees or taxes charged by the provincial governments. And your estate may need to pay income tax on assets that don’t even need … We serve clients across the province of Ontario. Designated assets such as pensions, RRIFs and RRSPs with named beneficiaries (other than the deceased’s estate) bypass probate. Note that EAT is an ‘asset’ tax, not an income tax as is the norm in Canada. If your location is not listed, please contact our head office. He was gracious with his advice and help - without delaying matters.”, Certified Specialist, Estates and Trust Law. Assets with identifiable beneficiaries, like a life insurance policy, are also not probate assets. It is becoming popular to have two Wills – one for assets that are probatable and one for those that are not. He was very knowledgeable, friendly and thorough and has written many books on the subject. This strategy is not available in all provinces and the use of multiple Wills may create problems with the new Graduated Rate Estate tax with respect to testamentary trusts. Traditionally husbands and wives held one or two joint bank accounts, and a jointly owned house. Non Probate Assets. Probate assets are anything owned by a deceased person that has no way of passing to a living beneficiary without a court-supervised probate process. Ed kept me grounded, listened to me, counseled me and supported me. Designated assets like life insurance, an RRSP, or RRIF pass to the beneficiary and bypass probate, unless payable to the estate. I have used Edward Olkovich for my own Will and I was the executor of my Brother-in-law’s will. Multiple Wills – Not all assets are subject to probate. The will does not have to be probated for these designated and joint assets to be transferred. Life insurance proceeds, bank accounts with payable-on-death designations, some retirement accounts, and some forms of real estate ownership pass directly to named beneficiaries by operation of law, so probate isn't required . Edward Olkovich is a Toronto-based Estate Lawyer and a Certified Specialist in Estates and Trusts Law. “The easiest professional I had to deal with to settle my parents’ needs was Ed. Probate fees are calculated on the value of the estate probated: $5 per $1,000 of estate assets up to $50,000, and $15 per $1,000 of estate assets over $50,000. Where property otherwise does not require probate to be dealt with because it is in the Registry System, it is subject to the first-dealings exemption, or legal title is held by a corporate nominee, if the testator only has one Will, and if there are other assets in the estate which require probate to be dealt with, probate fees will still be payable on the value of the real property. Usually legal advice is required to determine this issue. Be aware that certain legal requirements … © 2015. If the deceased has assets, then the question would arise, what assets are not subject to probate. Give gifts. Jointly owned assets with a right of survivorship (JTWROS) RRSPs, RRIFs, TFSAs with a named beneficiary other than ‘Estate’ Insurance proceeds paid to a named beneficiary other than ‘Estate’ Real estate owned outside of Ontario; Gifts made during your life; Assets in a trust created during your lifetime (inter vivos trusts). Multiple types of probate assets exist. 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