Smaller can be better….

There has been a buzz in the estates’ community over the last week as there was an announcement from the Ontario Attorney General, Doug Downey advising that there will be a simplified probate process for estates valued under $150,000.00

What does this mean to you as the average Canadian reader? Probably not a lot at first; however, this will eventually mean a lot if you will be an Executor, your future Executor, and to many, many trees!

“Right now, the process to apply to manage an estate in Ontario is the same, whether the estate is worth $10,000 or $10 million. The process can be time-consuming and costly, deterring people from claiming smaller estates — and that isn’t right,” said Ontario Attorney General Doug Downey in a release.  As of April 1, 2021, there will be a more straightforward process for someone applying for the Certificate of Appointment of Estate Trustee with a Will (or without a Will) …..formally known as probate.

Effective April 1, 2021 a simplified process will be introduced for estates valued under $150,000.00

At this point, I am not sure what the application forms will look like, but my friendly neighborhood software providers promise that we will know soon! We know from the Smarter and Stronger Justice Act that there will be an easier-to-navigate application form, discarding the requirements of including certain supplementary documents, and the removal of the need for a security bond.

The new simplified probate process for small estates does not remove the requirement of paying probate taxes on any estate valued over $50,000.00 because, well, it’s the government, and they always find a way to charge tax!

The good news is that families with a modest estate requiring probate can now face a more manageable process during an already difficult time.  There are many unclaimed bank accounts due to the hoops and red tape that a grieving family must endure simply for “grandma’s bank account”.  Many families choose to walk away from claiming assets because the process of probate was too complicated for the size of their loved one’s estate.  In my opinion, introducing a simplified method for a smaller estate provides grieving families with respect and dignity regardless of their financial situation.