Why is that? Because if you don’t make a will, the government will make one for you. They will not allow for variations or reducing taxes. If you do not have a will, government rules decide who controls all your stuff. Their rules, not yours, decide who inherits and when. People with special needs or your favourite causes do not get any special treatment.

Find the time to invest in a professionally prepared will for your loved ones’ benefit. You can decide who controls your stuff, who benefits and when. Plus, you can deal with any special needs or make gifts to your favourite charities that count on your continued support. Read about the dangers of do-it-yourself wills in my post, Online Wills vs Lawyer-Prepared Wills: Which Should You Trust? Part 1 and Part 2.

Gifts to charity also give you charitable tax donation credits that can reduce your income taxes.

If you have a business or corporation, you need legal help to make wills and charitable gifts.

You can still be generous by gifting specific assets that allow you to name designated beneficiaries. These items include registered investments like RSPs, RIFs or tax-free savings accounts and some pension benefits.

You can designate a named beneficiary of all or a portion of these assets by signing a designated beneficiary form from your provider that you deliver to your financial institution. This form confirms you named a designated beneficiary.

Designating beneficiaries should be made on forms supplied by your financial institution. You can change your designated beneficiary at no cost to you. names designated assets are not controlled by your will and not subject to provincial estate taxes.

You will still receive a charitable tax donation credit when this designated amount is distributed to a charity. This credit can be used to reduce your income taxes and leave more for your loved ones.

Remember, only you can make your will and estate plan for your loved ones.

How to Get Started

Have questions about making a will? I can help. Contact me for a meeting. I have helped people for decades to solve their will and estate planning issues.

I can offer you a meeting to discuss your needs by Zoom or in-person in my Toronto west-end office. Arrange your no-obligation meeting to make a will.

I am certified by the Law Society of Ontario as a specialist in Estates and Trusts Law. My law office is in the west end of Toronto.

The post Why Making Your Will Is Crucial appeared first on Edward Olkovich Law.

Even if your estate trustee compensation is not specified in the will, you are entitled to it by law. Compensation acknowledges your time and trouble in administering an estate.

Here is my infographic about estate services that you must perform in 3 different phases:

In the first phase, you are protecting estate assets. In phase two, you are probating a will to collect and sell estate assets. In the third phase, you are paying everyone.

In each phase, we recommend that you obtain legal advice. This should be paid for by the estate to protect you and the estate beneficiaries. In the last phase, you may be advertising for creditors, obtaining an income tax clearance certificate and reporting to the beneficiaries on the estate distribution.

Usually, you and hire a lawyer to prepare a formal release to be signed by all residual beneficiaries to approve your compensation. Releases confirm that your distribution and handling of the estate was satisfactory. Releases are legal documents which should be prepared by lawyers.

Releases are usually customized. This document should include a distribution proposal showing individual beneficiaries’ entitlement and approval of your claims for compensation. The release confirms that the beneficiaries do not require any additional information and have no further questions regarding your handling of the estate.

If all residual beneficiaries agree and sign releases, you can avoid the need to prepare a passing of accounts. This passing is a process where courts will review and deal with objections to your estate accounting. If necessary, a trial can be held to deal with any objections that cannot be resolved.

How to Get Started

Need help during your journey as an Ontario estate trustee? Contact me for a meeting. For decades, I have helped estate trustees to solve estate issues by going to court or through mediation.

I can offer you a meeting to discuss your needs by Zoom or in-person in my Toronto west-end office. Arrange your no-obligation meeting today to avoid making any scary mistakes.

I am a Certified Specialist in Estates and Trusts Law. I can give you expert tips to end your estate worries.

The post Essential Skills for Ontario Estate Trustees: Navigating Your 3-Phase Process appeared first on Edward Olkovich Law.

Ontario executors must file provincial Estate Information Returns 180 calendar days after estate courts issue your certificate of appointment. Your duty is to comply with Ontario’s Estate Administration Tax Act.

The government has a guide to explain your responsibilities. The government’s guide to the Estate Information Return can be found here.

The government states the purpose of the EIR is to:

1. Determine the fair market value of the estate,
2. Calculate estate administration tax (EAT) estates must pay,
3. Assess all estate taxes due and impose penalties.

The EIR details the value of the estate used to calculate the EAT paid to the estate court. The EIR must be signed by all estate trustees. The EIR form does not have to be signed in front of a lawyer or notary. You should retain a copy of the EIR for your file.

EIR Requirements

Applications for estate certificates are filed with the Superior Court of Justice. You do not file the EIR at the time you apply for your court certificate.

Once you have your certificate of appointment, the EIR is filed online with the Ministry of Finance. The EIR must be filed within 180 calendar days of the date the estate certificate was issued.

Making a false or misleading statement is an offence under the Act. There are deadlines for filings as well.

Offences are punishable by fines and imprisonment including:

a) Fines of at least $1,000, but not greater than twice the amount of the tax payable by the estate if more than $1,000.
PLUS
b) Imprisonment for up to two years.

Estate Information Returns (EIR)

Your duty as estate trustee is to provide information about all estate assets. This allows the government to assess and audit the estate for provincial tax (EAT). Fair market value of estate assets is required as of the date of death.

You must provide details for each category of assets in an online filing since early 2025. You submit your completed EIR for delivery to the government.

The EIR collects specific details in five different categories:

1. real estate in Ontario
2. bank accounts
3. investments
4. vehicles and vessels
5. other property

Each category has different requirements.

When bank accounts and investments are held by advisors or institutions, they can provide a breakdown of the information that can be filed.

The category “other property” is a catchall. It includes the value of any business interest, copyrights and trademarks.

Included items are household contents, art, jewelry, and any loans that may be owing to the deceased.

You may have prepared a preliminary estate inventory of assets and liabilities. Your records and supporting statements or records must be kept for inspection. If you have located additional assets, you are required to pay additional EAT.

The asset inventory does not need to include every cup and saucer. What is relevant is the value for estate tax purposes.

Liabilities for the Estate

Only mortgages on land in Ontario are deducted to calculate the provincial estate tax.

Liabilities such as funeral expenses are not deducted on the EIR. Credit card debts are also not deducted unless secured as mortgages.

Retaining Estate Records

You will need to keep your estate inventory and supporting paper and digital records.

The Ministry can assess or reassess the values on your EIR. This can happen years later. You will have the right to appeal or object to the notice of assessment. Your records must cover any appeal period, which can be 6 years or more.

Your records may also be needed for federal income tax purposes.

Subsequently Discovered Estate Assets

What if you subsequently find new estate assets? You will need to take two steps.

First, you need to swear an affidavit to explain this to the estate court. You will pay additional estate tax then.

Second, you must deliver an amended EIR to the Ministry of Finance.

Corrections or incomplete information on the EIR create complications. You must deliver a new EIR to explain any corrections or incomplete information if you find additional assets not included in your probate inventory.

Keep proof of delivery to avoid any late filing penalties or assessments.

How to Get Started

Need help during your journey as an Ontario estate trustee? Contact me for a meeting. I have helped estate trustees for decades to solve estate issues by going to court or through mediation.

I can offer you a meeting to discuss your needs by Zoom or in-person in my Toronto west-end office. Arrange your no-obligation meeting today to avoid making any scary mistakes.

I am a Certified Specialist in Estates and Trusts Law. I can give you expert tips to end your estate worries.

The post What is an Ontario Estate Information Return (EIR)? appeared first on Edward Olkovich Law.

You should obtain legal advice before you act as executor or estate trustee. This advice includes a review of the will(s). The sooner you obtain this legal advice, the safer you will be. Read my executor’s glossary to help you.

1. Find the Original Will

First, if there is a will, you must find the original signed will. If there is no will, you need legal advice about what reasonable searches are required to locate any will.

New legal rules allow judges to validate documents that do not satisfy all legal requirements for death on or after January 1, 2022.

Documents that could amend or represent formal wishes may need to be saved and reviewed by your lawyers.

If there is a will, the witnesses to the will must sign a document under oath called an affidavit of execution. This document confirms the will was properly signed. This affidavit must be filed with the court.

The original will is also filed with the estate court with your application to prove the will is legally valid. Your appointment as estate trustee with a will (or without a will) must be certified by the court to administer the estate.

If all documents are in order, the court issues an estate certificate. This is called a “certificate of appointment of estate trustee” (with or without a will).

2. Court Application to Appoint Estate Trustee

Lawyers prepare your estate application and legal forms to file with the court. There are different forms for estates valued at less than $150,000 than for estates valued over $150,000. At filing, the provincial estate tax is paid. This tax is called Ontario’s estate administration tax (EAT). It was once called provincial probate tax.

Notice is mailed to all estate beneficiaries. This informs them you are applying to administer the estate.

You usually do not need to appear in court. The estate court issues a certificate without anyone appearing in court. Court processing can take months depending on the volume of applications filed and additional time for any corrections. After this, the court can issue an estate certificate with a will.

The estate court staff reviews estate court applications. They check for details and can request extra materials before submitting documents for final approval. Judges may accept or require additional information.

This process is usually done without anyone appearing in court. It can take 3-6 months or longer.

3. How to Prepare the Estate Inventory

You need to prepare an estate inventory for your lawyer with fair market values as at the date of death. This inventory is used to calculate both provincial estate administration tax (EAT). It is not filed with the court.

You identify which assets are controlled by the will. World-wide assets are valued and subject to provincial EAT if they are controlled by wills.

Designated assets can have named beneficiaries. These designated assets include: life insurance, registered investment plans or pensions and are not subject to provincial probate tax if beneficiaries are named.

Please see my separate guide on how to prepare an estate asset inventory.

4. Calculating Provincial Estate Administration Tax (EAT)

No debts, except for mortgages, can be deducted to calculate EAT. Credit card debt and funeral expenses are not deducted.

Assets that are designated to named persons as beneficiaries (other than to the “estate of”) are not subject to estate administration tax. Ontario taxes are roughly 1.5% on estate assets over $50,000.00. There is no tax on the first $50,000.00 of estate assets.

I will prepare a draft estate inventory for you to approve. This will estimate the provincial tax payable. You are not required as executor or estate representative to pay any estate debts using your own money.

Certified Cheque or Bank Draft required for Ontario Minister of Finance

In the past, bank drafts were provided to pay the provincial EAT when the estate court application is filed.

Bank policies have changed and bank drafts or certified cheques for EAT from the deceased’s own bank may not always be available.

5. Provincial Probate Penalties

Estate trustees who under report provincial estate tax face penalties for not including or misrepresenting estate values. Penalties can include:

a) a fine of at least $1,000 or twice the tax payable by the estate;
b) imprisonment for not more than 2 years; or
c) both.

Appraisals and supporting documents are usually required to substantiate your values.

As estate trustee, you must retain financial records for a minimum of six years. You can be reassessed for EAT and income taxes.

What if you discover errors in your estate asset inventory? You are required to pay any extra provincial estate tax. You also must amend the EIR.

How to Get Started

Have questions about probate? Need help with administering an estate? I can help you on your journey as an Ontario estate trustee. Contact me for a meeting. I have helped estate trustees for decades to solve estate issues by going to court or through mediation.

I can offer you a meeting to discuss your needs by Zoom or in-person in my Toronto west-end office. Arrange your no-obligation meeting today to avoid making any scary mistakes.

I am a Certified Specialist in Estates and Trusts Law. I can give you expert tips to end your estate worries.

The post Ontario Probate Success – Your Essential Guide appeared first on Edward Olkovich Law.

I can help you if you are an estate trustee.

You do not have feel overwhelmed. Google may offer all kinds of checklists to help you if you’re an executor. Often these providers are not dealing with Ontario laws. They may offer checklists that are generic and do not review the specifics in any will or Ontario laws that you must follow.

Without a will, you need to hire a lawyer to apply in court to be appointed as an estate trustee.

If there is a will you may be concerned about where to spend your time. You may feel overwhelmed by all the new tasks and terminology.

I have broken down the estate administration process into 3 phases (protect, probate and pay) as set out in the infographic below.

This graphic breaks down estate administration into 3 phases. You do not have to panic or feel you have lost direction over the 1 – 2 years or more that it may take to close an estate.

Simple terms like opening and closing an estate may sound confusing. But only in Hollywood is there a formal reading of the last will in a lawyer’s office. Closing an estate means paying everyone, including the tax department.

Check out my Ontario Executors Glossary where I explain more terms that executors need to know.

The term probate was previously use to describe the process when the court validated an original will. Probate confirmed who the executors and beneficiaries were. Back then an estate executor would probate a will to collect and sell estate assets.

This estate terminology changed in Ontario in 1995. If you are named in a will as an executor, you would no longer apply for letters of probate to handle an estate. Instead, you would have a lawyer apply for a certificate of appointment of an estate trustee with or without a will. If there was an intestacy (no will), you receive a certificate of appointment of estate trustee without a will.

Most places continue to use the term probate. People understand probate’s negative connotations relating to provincial probate fees or probate taxes. People go through a lot of trouble to try and avoid having to probate an estate. These attempts can often lead to court cases that can drain estates of cash.

If there is no will, Ontario laws dictate who oversees an estate, who inherits and when. There is no room for variation and no provisions are made for anyone’s special needs or special assets. There is no tax planning if there is no will. You may need a court lawyer to appoint you as the estate trustee without a will.

How to Get Started

Need help during your journey as an Ontario estate trustee? Contact me for a meeting. I have helped estate trustees for decades to solve estate issues by going to court or through mediation.

I can offer you a meeting to discuss your needs by Zoom or in-person in my Toronto west-end office. Arrange your no-obligation meeting today to avoid making any scary mistakes.

I am a Certified Specialist in Estates and Trusts Law. I can give you expert tips to end your estate worries. 

The post Ontario Estate Trustees Follow These Steps appeared first on Edward Olkovich Law.

Here are 10 questions for which Ontario estate executors need answers. If you expect your executor to act promptly, collect answers to these questions for your Ontario estate trustee.

1. Where can I find the original will?
   Will your executor know where to find the original will to be reviewed by an estate lawyer?
2. Have you arranged a funeral and how do I deal with grieving relatives?
   Did you make your wishes known and prearranged your funeral/burial wishes?
3. Can I run the business or do I hire someone to do it?
   How dangerous will this be for someone without experience?
4. How do I secure estate assets and help dependants and pets?
   Have you prepared an inventory and where to find it? Include passwords and any digital assets.
5. Can I hire lawyers to defend the will or settle any lawsuits?
   How many disgruntled relatives and broken promises are there?
6. What property is to be sold once the estate certificate is received?
   Executors need directions in the will and legal advice to sell estate assets.
7. What investments must be managed for short or long-term goals?
   Who is qualified to give this advice?
8. What will need to be insured and what insurance benefits are there?
   Does the estate trustee know what information is needed to collect insurance?
9. Who prepares your tax returns?
   Tax paperwork can drive executors crazy, cause delay and add stress.
10. How do I contact beneficiaries?
    Do you have current contact information for beneficiaries?

How to Get Started

Need help during your journey as an Ontario estate trustee? Contact me for a meeting. I have helped estate trustees for decades by solving estate problems, going to court or through mediation.

I offer you a meeting to discuss your needs by Zoom or in-person in my Toronto west end office. Arrange your no-obligation meeting today.

I am a Certified Specialist in Estates and Trusts Law. I can give you expert tips to end your estate worries.

The post Essential Questions Every Ontario Estate Trustee Must Ask appeared first on Edward Olkovich Law.

Here is a list of top 10 executor headaches that can make your job more stressful. You will require experienced legal advice to keep you out of trouble.

1. The estate is broke. Do the math and check if you have enough money to pay all the bills.
2. Real estate is always a headache. If you must sell real estate you have added responsibilities.
3. Investments and Commercial Real Estate. Does the estate include investments, including commercial real estate that requires attention?
4. Foreign Assets. Following the legal rules to probate an estate in another language and jurisdiction may be time consuming and complex.
5. Business Comes Before Pleasure. Is there an active business with partners or a corporation with shareholders in the estate?
6. Your Age Considerations. Does your age or health prevent you from starting and finishing your tasks over the next year or more?
7. Conflict or Conflict of Interests. Are there signs that the beneficiaries would disagree and give you headaches? Do you have a conflict of interest?
8. Contested Wills. Do you think that anyone will contest the will?
9. You Can’t Hire Help. Does the will prohibit you from hiring professionals to assist you with your duties?
10. Tedious Long-Term Trusts. Does the will require you to manage a Trust on a long-term basis, say over the next 5 to 10 years?

These and other executor headaches can make your job as estate trustee more stressful. Be forewarned. You will need experienced legal help to deal with these headaches.

How to Get Started

Need help during your journey as an Ontario estate trustee? Contact me for a meeting. I have helped estate trustees for decades by solving estate problems, going to court or through mediation.

I offer you a meeting to discuss your needs by Zoom or in-person in my Toronto west end office. Arrange your no-obligation meeting today.

I am a Certified Specialist in Estates and Trusts Law. I can give you expert tips to end your estate worries.

The post Take This Stress Test: Top 10 Triggers for Ontario Estate Trustees Revealed appeared first on Edward Olkovich Law.

Need help handling an estate with or without a will? Contact me for a meeting. I have solved estate problems for decades by going to court or through mediation.

I offer you a meeting to discuss your needs by Zoom or in-person in my Toronto west end office. Arrange your no-obligation meeting today.

I am a Certified Specialist in Estates and Trusts Law. I can give you expert tips to end your estate worries.

The post My wife’s brother never claimed his part of their mother’s estate. What do we do now? appeared first on Edward Olkovich Law.

Why Wills are Important

Wills are more than a letter setting out your last wishes. Wills must comply with legal requirements and satisfy your legal obligations. These legal obligations can be to spouses, dependants and those who have relied on your promises to their detriment. Shareholder agreements and marriage contracts can also create legal obligations.

Do you know what your legal obligations are? Better talk with a lawyer to meet your obligations. If you don’t, you can expect trouble when you are gone.

It is a mistake to assume your spouse will inherit everything without a will. Only married spouses have inheritance rights in Ontario.

Avoid Government Intestate Laws

If you have no will, the government decides who inherits your estate based on their intestate laws. These intestate laws are rigid and not flexible.

Courts decide who controls your stuff. Your relatives may need to hire lawyers for court proceedings to decide who controls your stuff. Courts appoint estate trustees without a will. Estate trustees without a will must reside in Ontario. Government rules also decide who inherits and when. You can’t support your favourite charities or those with special needs unless you make your will.

What if you don’t make a will? Your relatives or people that you may not have spoken to in decades may inherit all your stuff.

Your Will Can Reduce Taxes

How much do you pay in taxes at death?

Don’t worry. You can’t avoid paying your debts by dying without a will. Courts must appoint someone to pay your debts and taxes if you don’t make your will. The government also takes as much tax as it can if you have no will.

How to Get Started

Need help planning your will or handling an estate with or without a will? Contact me for a meeting. I have solved estate problems for decades by going to court or through mediation.

I offer you a meeting to discuss your needs by Zoom or in-person in my Toronto west end office. Arrange your no-obligation meeting today.

I am a Certified Specialist in Estates and Trusts Law. I can give you expert tips to end your estate worries.

The post Protect Your Loved Ones – Why Making Your Will Matters appeared first on Edward Olkovich Law.

Wills are not contracts. They cannot be enforced if they are invalid. Yes, this means will beneficiaries can be out of luck if a will is not valid. Online will providers (OWPs) can’t prevent elder abuse or mitigate suspicious circumstances that allow courts to question wills.

When you sign what looks like a professional will made online, how do you know if it is valid? Financial institutions usually only accept wills after courts validate them. Your executor may need to prove any will is valid in court.

Who does your executor call to support your will in court?

Why Wills are Disputed

You cannot contest wills if you only believe the will is unfair or that your share is less than what you expected. You require legal grounds and evidence to challenge wills.

Wills are legal documents and subject to legal review by judges. See my post on why wills are disputed in Ontario here.

Are You a Gambler?

Ask yourself, are lawyer-prepared wills bad investments or are you using online will providers because you have a limited budget? Are you investing in a valid will or looking for the cheapest will you can find?

Can your OWP come to court to defend your will? Remember, they are not giving any legal advice, only guidance. People who make online wills may think they have a valid will. If courts do not validate their wills, then prior out of date wills can be valid or even worse, people might not have a will at all. If that happens, Ontario intestate laws apply.

Your loved ones count on you to prepare a valid will. Don’t compromise to accept the lowest priced will. Price should not be your deciding factor making your last will. Protecting your money and loved ones are too important to do that.

How to Get Started

Need help planning your will or handling an estate with or without a will? Contact me for a meeting. I have solved estate problems for decades by going to court or through mediation.

I am a Certified Specialist in Estates and Trusts Law. I can give you expert tips to end your worries.

The post Online Wills vs Lawyer-Prepared Wills: Which Should You Trust? Part 2 appeared first on Edward Olkovich Law.