What Happens to a Property When Someone Dies in Ontario?
When a property owner dies in Ontario, the property forms part of their estate. Depending on how title was held, the property either passes directly to a surviving co-owner (joint tenancy with right of survivorship) or goes through the estate distribution process.
If the property needs to go through the estate, the executor named in the will (or an administrator appointed by the court if there's no will) becomes responsible for managing and ultimately selling or transferring the property.
Do You Need Probate Before Selling?
Probate (officially called a Certificate of Appointment of Estate Trustee in Ontario) is the court process that confirms the executor's authority to act on behalf of the estate. Whether you need it before selling depends on the situation:
- Joint tenancy: If the deceased co-owned with right of survivorship, title transfers directly — probate is usually not required.
- Sole ownership: Probate is typically required before selling, as the buyer's lawyer and title insurer will require it.
- Conditional sale: In some cases you can enter a conditional purchase agreement before probate is granted and close once it's obtained.
Ontario probate typically takes 4–12 weeks. NestBridge can work within this timeline — we're experienced with estate transactions.
Capital Gains on an Inherited Property in Ontario
In Canada, when someone dies, they are deemed to have disposed of all their assets at fair market value on the date of death. This can trigger capital gains tax on the estate's final return — not on the beneficiaries directly.
- The principal residence exemption may apply if the home was the deceased's principal residence.
- If the home was a rental or investment property, capital gains will apply on any increase in value since acquisition.
- Beneficiaries selling after inheriting generally have their cost base set at the fair market value at the date of death — limiting further capital gains exposure.
Capital gains situations in estates can be complex. Always consult a Canadian tax accountant or estate lawyer before proceeding.