Learn which assets require probate and how ownership, beneficiary designations, and financial institutions affect an Ontario estate.
Assets held solely in a deceased person’s name often require probate, while some jointly owned assets and accounts with named beneficiaries may pass outside the estate.
Probate is the court process used to confirm an estate trustee’s authority to manage estate assets. Families often ask which assets require probate because the answer affects how property can be transferred and whether Estate Administration Tax may apply.
There is no single rule for every estate. Ownership, beneficiary designations, and the requirements of banks or other institutions can all affect whether probate is needed.
Assets Held in the Deceased’s Name
Assets owned only by the deceased are more likely to require an estate certificate before they can be transferred or sold. These may include:
- Bank and investment accounts
- Real estate
- Vehicles and valuable personal property
- Private company shares
- Accounts without a named beneficiary
A financial institution may require probate before releasing funds, even when a will names an estate trustee. Ontario describes an estate certificate as proof that the trustee has authority to manage the estate.
Assets That May Pass Outside the Estate
Some assets may transfer without passing through the estate.
Property held in joint tenancy usually passes to the surviving joint owner. By comparison, a deceased tenant-in-common’s share generally becomes part of their estate.
Life insurance, RRSPs, RRIFs and TFSAs may also pass directly to a properly named beneficiary. When no beneficiary is named, or the estate is named, the funds may become estate assets.
These distinctions are important when determining which assets require probate, but the paperwork alone may not settle every issue. Questions can arise about whether joint ownership was intended as a true gift or only added for convenience.
Real Estate and Business Interests
Real estate held solely in the deceased’s name will often require probate before it can be sold or transferred. The result may differ for jointly owned property.
Private company shares can also require special attention. The estate trustee may need to review corporate records, shareholder agreements and transfer restrictions before dealing with them.
Probate Should Not Be the Only Goal
Reducing probate may be useful, but it should not come at the cost of control, fairness or tax planning. Adding a joint owner or changing a beneficiary can create unintended legal and family consequences.
Understanding which assets require probate calls for a review of the entire estate, not one account at a time.
To discuss your estate plan, speak with Samantha Machado, review our Estate Planning services, or read our Practical Guide to Estate Planning in Ontario.
Quick FAQ
A TFSA with a valid successor holder or beneficiary designation may pass outside the estate. If no designation applies, the account may become part of the estate.
Life insurance paid to a named beneficiary will generally pass outside the estate. Probate may be relevant when the estate is the beneficiary or no valid beneficiary is named.
No. The tax applies to the value of the estate for which an Ontario estate certificate is applied for and issued. Ontario currently charges no tax on the first $50,000 and $15 per $1,000, or part of $1,000, above that amount.
