Update: Ontario Executors Glossary – These Ontario Executor Terms Keep You Out of Hot Water

Are you stuck trying to understand terms as an Ontario Executor? They may mean something different in another province or state. I have prepared your Ontario A-to-Z list in plain English to help.

Do you have specific words that trouble you? Let me know and I will do my best to give you a plain English explanation and add it to the list.

Legal owner – legal owners may also be the beneficial owners. Legal owners may control assets but are responsible to beneficial owners as fiduciaries. Courts can impose resulting trust obligations on legal owners to hold the assets for beneficial owners. See gratuitous transfers/resulting trust/fiduciaries.

Estate certificate – whether there is a will or not, you need a Certificate of Appointment to obtain estate assets in Ontario. Estate certificates name estate trustees with or without a will. Estate certificates confirm who can collect estate assets for distribution (probate). The term estate trustees means estate executor or administrator.

Estate trustee with a will – as estate executor, you are appointed estate trustee with a will by estate certificate. If there are no objections filed, estate certificates confirm this gender-neutral term for Ontario executors/estate trustees under any last will.

Estate trustee without a will – if there is no will, there is no named estate executor in charge of the estate. Relatives can apply to estate courts to obtain certificates of appointment as estate trustee without a will to authorize them to handle estates. Estate lawyers are able to determine who should be appointed as estate trustee and if a bond or security is required.

Threshold evidence – In Ontario, anyone challenging wills must produce minimal “threshold evidence” that, if accepted, would put any will’s validity in jeopardy. Courts no longer allow disgruntled relatives to put estates to the expense of defending will challenges with little or no merit. Without this minimal evidentiary threshold, Ontario will challenges cannot obtain disclosure of medical, legal and financial records.

Federal income taxes – these are usually the largest debt in any estate. The federal government in Canada has an income tax system, not an estate tax system. Immediately prior to a person’s death, they are deemed to have sold their capital property at fair market value. This deemed disposition generates income to be included in a person’s final tax return.

Provincial estate tax – Ontario imposes a provincial Estate Administration Tax (EAT) of roughly 1.5% on the estate value. Foreign real estate is excluded in calculating EAT. The only deduction allowed to calculate provincial EAT is any encumbrance or mortgage on Ontario real estate.

Bond – estate bonds are forms of security required in the court’s discretion. Usually, bonds are purchased from insurance companies to protect creditors and beneficiaries from potential harm. This applies where there is an out-of-jurisdiction executor, no will or named executor.

MAiD – Medical Assistance in Dying. Allows designated providers or self-administered providers of a substance to qualified persons entitled to cause their own death.

Substantial compliance – Ontario law allows judges to accept written documents that, although not properly made as valid wills, can be accepted as valid provided judges are satisfied the document reflects final testamentary intentions for people who die on of after January 1, 2022.

Visit my complete Glossary for more estate terms.

Do you have questions about how these terms may affect you or your case? I have answers. Contact me for a meeting to discuss your questions. I look forward to helping you.

I am a Certified Specialist. Estate law is all I do.