A Simplified Procedure on the way for Modest Estates?

December 16, 2019 Jenna Bontorin Executors and Trustees, Recently Tags: , , 0 Comments

It appears that the Ontario government is taking action to make it easier and more affordable for executors of modest estates to access the courts.

Where the value of an estate is relatively small, the cost of obtaining a Certificate of Appointment (otherwise known as “probate”) can be perceived as too expensive. As a result, an executor (“estate trustee”) of a small estate often administers the estate without the protection of probate. In some cases, people choose not to administer a small estate at all and abandon the assets altogether.

Foregoing probate may lead to roadblocks when administering an estate. Third parties (like banks and persons buying the deceased’s real or personal property) will often require that the estate trustee obtain a Certificate. Probate reassures these third parties of the estate trustee’s authority and protects third parties from liability, as it verifies that the person they are dealing with is authorized to deal with the estate’s assets.

Simplified procedure for modest estates
Right now, the probate process for all estates in Ontario is the same, no matter the size of the estate.

In the past, we have blogged about the Law Commission of Ontario’s efforts on this issue, including the release of a questionnaire to Ontarians who have administered what they consider small estates.

It now looks like the provincial government is looking to address the issue as well. Attorney General Doug Downey recently introduced the Bill 161, Smarter and Stronger Justice Act.  If passed, the Act is intended to improve how court processes are administered to make life easier for Ontarians.

Notably, one of the proposed amendments includes allowing for a simplified procedure to make it less costly to administer estates of a modest value.

Right now, the probate process for all estates in Ontario is the same, no matter the size of the estate.

The Smarter and Stronger Justice Act would make amendments to Ontario’s Estates Act to exempt probate applicants from the requirement to post a bond for small estates in certain cases.

Other proposed changes to the Estates Act include safeguards to protect minors and vulnerable people who have an interest in an estate, and to increase efficiency by allowing local court registrars to perform the required estate court records searches, rather than a central court registrar.

It will be interesting to see if the proposed changes will be passed, and how they may encourage more people to apply for probate and administer an estate of lower value.

Thanks for reading!

Jenna Bontorin

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