The Ontario government has introduced the Smarter and Stronger Justice Act, 2020 (the “Justice Act”), which amends more than twenty provincial statutes with the aim of making it easier, faster and more affordable for Ontarians to access the justice system. One of the statues which the Justice Act amends is the Estates Act (the “Act”) which establishes
the rules and procedures for obtaining probate in Ontario. As a reminder, probate is the legal process by which a deceased’s last Will (where on exists) is validated, and the Court confirms or establishes the authority of the estate trustee to administer the deceased’s estate. The probate process has long been criticized as unduly expensive, time-consuming, and difficult for laypeople to navigate without the assistance of a lawyer.
The amendments, and new regulations, establish a simplified probate procedure for “small estates”, which have been set by regulation at a maximum value of $150,000. This is an alternative to the existing probate system, and is said to have been designed to reduce time, costs and to make the system more user-friendly. The changes include a new simpler application form, the removal of certain requirements in the existing probate system, and, in most cases, the removal of the requirement to post a bond with the Court. The new simplified procedure allows for the issuance of a “Small Estate Certificate” which has the same legal effect as the traditional Certificate of Appointment of Estate Trustee. However, the authority granted to estate trustees pursuant to the new Small Estate Certificate will be limited to the assets listed in the probate application as opposed to all the assets owned by the deceased.
Hopefully, the new streamlined process for small estates will make it easier, more affordable and less cumbersome for Ontarians seeking to mange small estates.
** For clarity: The small estates limit of $150,000 only applies to eligibility for the new simplified probate procedure and does not effect the Estate Administration Tax Act exemption limit of $50,000. **
Comments