Dear David,

I recently lost my mother. Her Will names my brother and I as co-executors, and gives us the ability to act independently. As an executor, I’m unsure of my responsibilities with regards to her house. I’ve heard that probate may be required as the house was solely in her name. I don’t understand what probate involves, or how to get started. Could you offer some guidance on how this works in Ontario, and what steps an executor should take following the death of a loved one? – UNSURE

DEAR UNSURE: I am truly sorry to hear of the loss of your mother. Taking on an executor role can feel overwhelming in a time of grief, but understanding what probate involves can help make the process more manageable. Probate is the legal process by which a court confirms that the Will is valid, and authorizes the executor(s) to manage the estate. In Ontario, this process is officially referred to as obtaining a Certificate of Appointment of Estate Trustee with a Will. Once granted, a Certificate of Appointment gives you legal authority to deal with your mother’s assets, which may include accessing her bank accounts, selling property, paying debts and final taxes, and distributing inheritances to beneficiaries.

Because a key part of the estate is a home held solely in your mother’s name, probate will likely be required. With few exceptions, financial institutions typically require probate to sell or transfer estate assets that are held individually. When property is held jointly, or when assets have named beneficiaries (like insurance policies or RRSPs), probate may not be necessary.

As co-executors who can act independently, you and your brother both have authority to manage your mother’s assets. Ideally, you’ll work together, keeping lines of communication open so that everything gets done, but not duplicated. A “divide and conquer” approach can help you secure your mother’s property, notify banks and government agencies of her passing, and gather financial information more efficiently.

Determine if probate will be required, and if it is, apply to the court for a Certificate of Appointment of Estate Trustee with a Will. In Ontario, you’ll have to pay the estate administration tax, which is 1.5 percent for estates valued at over $50 thousand. Once probate is granted, you’ll need to gather and manage your mother’s assets, pay any outstanding debts and final taxes, and distribute her remaining assets according to the instructions in her Will. Be sure to keep detailed records throughout this process.   

PRO TIP: The executor role is a meaningful way to carry out your mother’s final wishes, and also a significant responsibility. Hire a lawyer to help you navigate the legal and financial aspects, particularly when real estate is involved. Estate planning may help you to minimize probate fees, but I’ll talk more about that in the future. #Advice #AskDavid #TheNegotiator

David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Moving? Get it right. Call or text David at 519-577-1212.