ABC’s of Probate
Let’s delve into the intricate world of Probate and shed some light on the importance of understanding its various elements. By understanding the basics of Probate, you become empowered with the knowledge needed to navigate this procedure with confidence and clarity. So, let's embark on this journey together and unravel some of the terminology used throughout the process of Probate.
Affidavit: An affidavit is a written statement that is sworn or affirmed by an individual authorized to administer an oath. When you use an affidavit, you claim that the document's information you're document is true and correct to the best of your knowledge. The Affidavit of Service (Form 74B) is required when applying for a Certificate of Appointment of Estate Trustee. However, there are numerous additional affidavits that you may encounter throughout the process.
Certificate of Appointment of Estate Trustee: An order of the Court that confirms the executor has the authority to administer a deceased person’s estate. This is what is commonly referenced to as a “Probate Certificate”.
Consent Forms: This is a specified Court form that is needed when the applicant is not named as estate trustee and the beneficiaries must consent to the appointment.
Estate Administration Tax (EAT): In Ontario, Estate Administration Tax (EAT), formerly known as Probate Tax, is owing to the Minister of Finance if a Certificate of Appointment of Estate Trustee is applied for and issued. EAT is calculated on the market value of the deceased’s estate, which is the total of all assets owned at the time of death. To learn more about Estate Administration Tax, and for the breakdown of how it is calculated, click here to read our blog.
Estate Information Return: All Estate Trustees in Ontario must file an Estate Information Return (EIR) within 180 days (about six months) after the date of the grant of the Certificate of Appointment from the court. The EIR is an asset disclosure form that details all assets passed into the estate. To learn more about the Estate Information Return, click here to read our blog.
Inventory List: An inventory listing is used to determine the market value of the deceased’s estate which then calculates the EAT owing. Assets such as bank accounts, investments, real estate, vehicles/vessels, and all other property owned whether tangible or intangible are to be included, and values must be recorded as of the date of death.
Memorandum: A Memorandum to a Will is a separate document from the Will which may convey bequests, instructions or wishes to the Estate Trustee. A Memorandum to a Will may be either binding or non-binding.
Notarial Copy: This is a photocopy of an original document verified by a notary public to be an accurate copy of the original.
Renunciation Forms: If for any reason you, or another individual are unable or unwilling to take on the role of Estate Trustee you may renounce the role without explanation, provided you do so before taking any steps to administer the estate. This is a specified Court form which the applicant for Estate Trustee files with their application for a Certificate of Appointment.
Gaining an understanding of the various elements of the probate process is paramount for anyone involved in dealing with the aftermath of a loved one's passing. Whether you are an executor, beneficiary, or simply seeking to protect your own estate, knowledge is power when it comes to navigating probate. So, take the time to educate yourself, consult with professionals, and empower yourself with the tools needed to navigate this important procedure.
Remember, if you are an Executor there is always help and guidance at ETP Canada for you. Click to book a consultation with a member of our team, or to take matters into your own hands and sign up for our online course called Executor Ready today!
This blog is not intended to be legal advice and should not be relied on as such. If you require legal advice, please contact a legal professional concerning your particular circumstances.