Selling a parent’s home is rarely just a real estate transaction. It usually arrives at the same time as grief, paperwork, siblings with opinions, and a basement holding fifty years of somebody’s life. We’ve helped families sell a few hundred estate properties over the years, and we’ve learned that a little planning early on saves a great deal of stress later.
If you’ve been named the executor (Ontario’s legal term is “estate trustee”) of a Toronto home, here’s what we’d want you to know before the sign goes up.
In most cases, before a house that was in the deceased’s sole name can be sold, the estate trustee needs a Certificate of Appointment of Estate Trustee from the Superior Court of Justice. Many people still call this “probate.” A home owned jointly with a surviving spouse usually passes to that spouse automatically, which is a very different situation, so the first conversation should be with an estate lawyer who can tell you which path applies.
Court timelines vary, and they’re not something any of us can hurry along. That’s exactly why we suggest starting the application early, even while you’re still deciding when to list.
Ontario charges Estate Administration Tax when an estate certificate is issued. According to the Province, for applications made on or after January 1, 2020:
The value of a home counts toward the estate, less any mortgage or registered lien on it. Real estate commissions, legal fees and credit card debts can’t be deducted. The Province also says to use the appraised value at the date of death, even if the home sells for more or less a few months later.
For example, a North Toronto house worth $2,000,000 on the date of death, with no mortgage, would carry Estate Administration Tax of about $29,250 on the house alone. The tax is paid as a deposit when the application is filed, and the estate trustee must then file an Estate Information Return with the Ministry of Finance within 180 days of the certificate being issued.
This is where a proper date-of-death valuation matters. A documented market opinion from a realtor who knows the street, or a formal appraisal, gives your lawyer and accountant something solid to work from. We prepare these for executors regularly, and we’re happy to do the same for you.
A vacant home needs more attention than a lived-in one. A few things worth doing right away:
Clearing a family home is emotional work, and it almost always takes longer than anyone expects. Give the family time to choose keepsakes before the estate sale company or donation truck arrives. One sibling’s “old lamp” is another sibling’s childhood.
Once the house is clear, resist the urge to renovate. Fresh paint, a deep clean, tidy gardens and good lighting usually pay for themselves. Big projects often don’t, and they push the sale further away. Many estate homes in North Toronto appeal to renovators and builders, and those buyers would rather put their own stamp on the place.
Ask the estate lawyer to review title early. Older properties sometimes have historical registrations on title that need to be dealt with before closing, and it’s far better to find them before an offer comes in than the week before closing. If there are several beneficiaries, agree in writing on how decisions about price and offers will be made. Clear communication between siblings has saved more estate sales than any staging budget.
Taxes deserve a call to the accountant, too. Canada Revenue Agency rules can apply to any increase in value between the date of death and the sale, so it helps to plan the timing with professional advice.
We’ve worked alongside estate lawyers, accountants and families through the probate process for more than 35 years, and we know how much is already on an executor’s plate. We can provide a date-of-death market opinion, coordinate trades and cleaners, and handle the sale from start to finish, with as little disruption to your family as possible.
If you’re settling an estate in North Toronto, book a confidential consultation with Adam, Sierra and Bianca, or request a home valuation to get started. There’s no obligation, just a straightforward conversation about your options.
This article is general information, not legal or tax advice. Please speak with an estate lawyer and accountant about your specific situation. Sources: Ontario Ministry of Finance, Estate Administration Tax; City of Toronto, Vacant Home Tax.