The $15,000 Sudbury Mistake: Why Your Real Estate Plan Needs a Will Before It’s Too Late
We’ve all heard it before: “I’ll get around to my will next year.” But as a Realtor serving Sudbury for over 11 years, I’ve seen what happens when “next year” comes too late.
At Team King, we don’t just help you buy and sell; we help you protect your legacy. Today, I’m breaking down the hard truths about probate, taxes, and why that “Opinion of Value” letter is more important than you think—especially here in the Greater city of Sudbury.
The Reality Check: Ontario’s “Will Gap”
Did you know that nearly 52% of Canadians do not have a signed, up-to-date will? In Ontario, the numbers are just as startling. Many people believe that if they pass away, their home automatically goes to their kids or spouse without a hitch.
The truth? Without a will, your estate enters Probate. This is a court process where a judge decides who manages your assets. While they decide, your house sits. You can’t sell it, you can’t renovate it, and meanwhile, the property taxes and Sudbury Hydro bills keep coming.
The “Death Tax” Nobody Talks About
In Ontario, we have the Estate Administration Tax (EAT). Here is how the math breaks down:
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First $50,000: $0 tax.
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Everything over $50,000: $15 for every $1,000 of value ($1.5%).
If you have a home in the South End or Minnow Lake worth $600,000, your family is looking at a $8,250 bill just to “prove” the estate to the government. That’s money that should be going to your grandkids, not the provincial treasury.
Why the “Opinion of Value” Matters (And Why We Do It For Free)
When you apply for probate at the Sudbury Courthouse, the court needs to know exactly what the house was worth on the date of death. This is the Fair Market Value.
This number is critical because it sets the “benchmark” for two things:
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Probate Fees: As mentioned above, the higher the value, the higher the tax.
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Capital Gains Tax: If the property isn’t a primary residence (like a family camp on Lake Panache), or if the heirs wait to sell and the value goes up, they will owe capital gains tax on the difference between the “date of death value” and the eventual sale price.
Team King has completed over a dozen Opinion of Value letters for local estates since last year alone. We provide these free of charge to help Sudbury families provide the court and the CRA with an accurate, professional starting point. Getting this number wrong can lead to audits or overpaying the government.
The “Upgrade Trap”
I often get asked: “Should we renovate the estate home before selling?” It’s a double-edged sword. If you do significant upgrades after the date of death but before the sale, you might increase the sale price, but you also increase the Capital Gains liability for the beneficiaries.
When is the tax actually paid?
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Probate Tax: Paid upfront when the application is filed with the Ontario Superior Court of Justice (located right here at 159 Cedar St).
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Capital Gains: Usually settled during the final tax return of the deceased or the estate’s T3 return.
Don’t Leave a Mess Behind
A will is the only way to ensure your money goes to the people you love and stays out of the hands of lawyers and the government.
If you are dealing with an estate in the Greater city of Sudbury or just want to make sure your own “Opinion of Value” is documented for your files, reach out to us at Team King. We’ve been through this process dozens of times in the Greater city of Sudbury and can help you navigate the “messy” parts with ease.
Written by: Jason King