What to Do With Your Parents' Home After They Pass Away in Ontario

Many families don't realize that you cannot legally sell a parent's home until the court gives you permission to do so. In Ontario, you'll need to obtain a Certificate of Appointment of Estate Trustee — the legal document that authorizes you to manage and sell the property.

This process, known as probate, typically takes anywhere from two to six months. Attempting to sell the home before probate is complete isn't just a procedural misstep — it's illegal, and it can cause significant delays and financial loss down the road.

Bottom line: Start the probate process as early as possible. Don't wait.

Canada doesn't have an inheritance tax, but that doesn't mean the government walks away empty-handed. There are two key taxes to be aware of:

• Capital Gains Tax applies if the home was not your parent's principal residence. The tax is calculated on the increase in the property's value from when it was purchased to the date of death.
• Estate Administration Tax (also called probate fees) is charged at roughly $15 per $1,000 of estate value above $50,000. This needs to be paid as part of the probate process.

One critical step many people overlook: get a professional property appraisal dated to the day of your parent's passing. This figure is required for your court filing and is essential for accurately calculating any capital gains owing. Don't skip this — getting it wrong can be expensive.

Estate homes are typically sold as-is, but that doesn't mean you should list it without any preparation. A few simple steps can make a meaningful difference in both the speed of the sale and the final price.

• Declutter and clean. Even a basic tidy-up helps buyers see the home's potential rather than its past.
• Price with data, not emotion. It's natural to feel attached to a family home, but overpricing based on sentimental value will hurt you in the market.
• Work with the right realtor. Not all real estate agents are the same. You need someone with specific experience in estate sales — someone who understands the legal nuances, the timeline, and how to position the property effectively.