If you are the executor (in Ontario, the “estate trustee”) of a parent’s estate, the home is often the largest asset. Here is how a sale usually unfolds.
You may be doing this while grieving, while working full time, or from another city. That is a lot to carry. The good news is that you do not need to know everything at once. With a good estates lawyer, a clear plan and some patience, most estate sales go smoothly. This guide walks you through the usual steps, the costs and responsibilities to be aware of, and the mistakes that most often cause trouble. It is general information only, so please rely on your lawyer and accountant for advice about your particular estate.
What an estate trustee is responsible for
The estate trustee is the person named in the will to gather the assets, pay the debts and taxes, and distribute what is left to the beneficiaries. When the home is part of the estate, the trustee is in charge of looking after it, deciding when and how to sell it (following the will), and making sure the proceeds are handled properly.
It is a position of trust. Estate trustees are expected to act fairly and in the interest of all the beneficiaries, not just themselves or one branch of the family. Being organized and open from the start protects you as well as them.
The usual steps in an estate sale
- Secure the home. Change the locks if needed, notify the insurance company that the home is vacant, and keep the heat on in winter.
- Find the will and meet with an estates lawyer.
- Find out whether probate is needed. In Ontario this is called a Certificate of Appointment of Estate Trustee. A buyer’s lawyer will usually require it before closing, unless the home was owned jointly with a surviving spouse.
- Get a market evaluation so the estate value is accurate.
- Clear and prepare the home. Let family take keepsakes first, in a fair, agreed way.
- List and sell. All estate trustees usually need to sign the listing and the sale documents.
- Distribute the proceeds through the lawyer, after taxes and debts are paid.
Looking after an empty house
A vacant home needs more attention than you might expect. Insurance policies often have special conditions for empty homes, which is why calling the insurer early is so important. Ask what they require: regular inspections, the water shut off, the heat kept at a certain level. Write down what they tell you.
- Call the home insurer and ask about vacancy conditions
- Change or secure the locks and collect all spare keys
- Keep the heat on in winter and check for leaks
- Arrange for snow removal, grass cutting and mail pickup
- Remove valuables, important papers and medications
- Keep paying property tax, utilities and insurance from the estate
- Visit regularly, or arrange for someone trusted to check the house
An example: a daughter in Ottawa is estate trustee for her father’s house in North York. She cannot visit every week, so she asks a neighbour he trusted to check the house, sets up snow removal, and keeps a simple log of every visit and expense. When the house sells, her records make the accounting to her brothers quick and calm.
Estate Administration Tax
Ontario charges Estate Administration Tax (often called probate fees) when an estate certificate is issued. There is no tax on estates worth $50,000 or less; above that, it is $15 for every $1,000 of value over $50,000.
That is one reason an accurate market evaluation matters: the value of the home affects the estate’s value. Your lawyer will calculate the tax and tell you what is needed to apply for the certificate.
Taxes and paying the bills first
Before the estate is distributed, the estate trustee must make sure debts and taxes are dealt with. That includes a final income tax return for the person who died, and possibly other returns. An accountant experienced with estates can be a great help here.
Many estate trustees also ask the Canada Revenue Agency for a clearance certificate, which confirms that the estate’s taxes have been paid. According to the Canada Revenue Agency, an estate trustee who distributes assets before getting a clearance certificate can be personally liable for unpaid tax, up to the value of what was distributed. Read more on canada.ca, and ask your lawyer or accountant whether you should request one before final distribution.
Whether the home was the deceased’s principal residence can also affect the tax picture, as can any rise in value between the date of death and the sale. Ask your accountant to explain how this applies to your estate.
Working with brothers, sisters and other beneficiaries
Estate sales can bring old family tensions to the surface. A few simple habits go a long way:
- Share the market evaluation and the listing price with all beneficiaries.
- Agree on a fair way to divide keepsakes before anything is removed, such as taking turns choosing.
- Give regular updates, even when there is not much news.
- Keep all receipts and a simple record of every expense and payment.
- If a beneficiary wants to buy the house, get independent legal advice and a fair market value so everyone is treated equally.
For more ideas, see Working Together as Siblings.
Common mistakes to avoid
- Letting the insurance lapse or ignoring vacancy conditions. A burst pipe in an uninsured empty house can be very costly.
- Clearing the house too fast. Important papers, such as a later will or bank records, can be thrown out by accident.
- Selling below market value to a friend or family member without proper advice. Beneficiaries may object.
- Distributing money early. Wait until your lawyer confirms that debts and taxes have been settled.
- Answering unsolicited offers. Death notices sometimes attract investors and scammers. Do not sign anything without your lawyer. See Title Fraud and Unsolicited Offers.
Frequently asked questions
Can I list the house before probate is granted?
Sometimes the house can be listed while the application is in progress, but a buyer’s lawyer will usually need the Certificate of Appointment of Estate Trustee before closing. Your lawyer and Realtor can help you plan a closing date that allows enough time.
Do all the estate trustees have to agree?
If the will names more than one estate trustee, all of them usually need to sign the listing and sale documents. Agree on decisions early and keep each other informed.
My mother’s house was owned jointly with my father, who is still alive. Is it part of her estate?
If they owned it as joint tenants, the home usually passes to the surviving spouse automatically, and probate is usually not needed for the house. Confirm with a lawyer. See Adding Children to Title for how the types of ownership differ.
Should we fix up the house before selling?
Often a good clean-out, a deep clean and small repairs are enough. Large renovations rarely make sense for an estate. A Realtor can tell you which improvements are likely to pay off.
How Irina can help
Irina works alongside your estates lawyer to give you an accurate market evaluation, help you prepare and sell the home, and keep every estate trustee and beneficiary informed. If you live out of town, she can talk you through the local arrangements a sale involves. She is glad to start with a gentle, no-pressure conversation in English or Russian. Contact her whenever you are ready.
Related guides: Movers, Estate Sales and Donations · Preparing a Long-Held Home · Helping from a Distance
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