Ontario vs Quebec: What a $750,000 Estate Costs to Settle in 2026 — Probate Fees, Notarial Succession Costs, and Executor Compensation Side by Side

The Scenario: One Estate, Two Provinces, No Will

We run this identical $750,000 estate through two provincial systems. In Scenario A, Robert lived in Toronto — Ontario law applies. In Scenario B, Robert lived in Laval — Quebec law applies. The federal income tax rules are the same. The provincial layer is where the costs diverge.

Step 1: The Income Tax Bill (Nearly Identical in Both Provinces)

Before we touch probate or executor fees, the biggest cost is federal and provincial income tax on the terminal T1 return. This hits regardless of province.

RRSP collapse: $450,000 of ordinary income

With no surviving spouse and no named beneficiary, the full $450,000 RRSP balance is included as income on Robert's terminal T1 return under section 146(8.8) of the Income Tax Act. This is not a capital gain — it's ordinary income taxed at full marginal rates.

Non-registered deemed disposition: $120,000 capital gain

Section 70(5) deems Robert to have sold all non-registered assets at fair market value immediately before death. The $300,000 portfolio with a $180,000 ACB triggers a $120,000 capital gain. Under the post-2024 tiered capital gains inclusion rate:

• First $250,000 of gains at 50% inclusion → $120,000 is entirely under the threshold → $60,000 taxable
• No gain above $250,000 — the 66.67% tier does not apply here

Terminal return: total taxable income

Income tax: Ontario vs Quebec

At $510,000 of taxable income, Robert is deep into the top combined bracket in either province. Ontario's top combined marginal rate is 53.53%. Quebec's is 53.31%. The difference is 0.22 percentage points — effectively negligible on this estate.

Step 2: Provincial Settlement Costs — Where the Gap Opens

Income tax consumed ~$224,000 of the $750,000 estate. Now the provincial settlement machinery takes its cut.

Ontario: estate administration tax + executor compensation

Robert died intestate in Toronto. His children must apply to the Ontario Superior Court of Justice for a Certificate of Appointment of Estate Trustee Without a Will (the intestacy equivalent of probate). This triggers the estate administration tax.

The executor compensation deserves a closer look. Ontario has no legislated fee schedule. The conventional 5% benchmark comes from case law — most notably Re Jeffery Estate and subsequent Superior Court decisions. It breaks down as roughly 2.5% on capital received into the estate, 2.5% on capital distributed out, plus a smaller percentage (0.4% to 0.6%) for ongoing care and management. On a straightforward $750,000 estate with liquid assets, 5% is the floor that most Ontario executors claim — and courts routinely approve it.

Quebec: dépôt au greffe + liquidator compensation

Robert died intestate in Laval. Under Quebec's Civil Code, the heirs must apply to the court for verification of the intestate succession through the dépôt au greffe (filing at the court registry). This is Quebec's functional equivalent of Ontario probate — but the cost structure is radically different.

The liquidator (Quebec's term for an executor) is appointed by the heirs when there's no will — typically one of the children. Under article 789 of the Civil Code of Quebec, the liquidator is entitled to "reasonable" compensation. Unlike Ontario's 5% convention, Quebec courts have consistently approved lower amounts for family-member liquidators — typically 1.5% to 2% of estate value, reflecting the civil-law tradition that settling an estate is partly a family duty.

The notary plays a central role in Quebec succession law. Even for an intestate estate, a notary must prepare the déclaration d'hérédité (declaration of heredity) — a document confirming who the legal heirs are and their respective shares. This costs $1,500 to $3,000 depending on complexity, and is part of the $3,000 to $5,000 notary fee above.

Step 3: The Settlement Cost Side by Side

The $36,275 gap is almost entirely driven by two Ontario-specific costs: the $10,500 probate fee and the $24,375 difference in executor compensation norms. Federal income tax — the dominant cost at $224,000 — is functionally identical across the border.

Step 4: Intestacy Distribution — Who Gets What

Robert died without a will, with no surviving spouse. In both provinces, the entire estate goes to his two adult children equally. But the mechanics differ.

Ontario intestacy (Succession Law Reform Act)

With no surviving spouse, Ontario's rules are straightforward: the estate is divided equally among the children. Sophie and Marc each receive 50%. On the $471,500 net estate: ~$235,750 each.

Had Robert been survived by a spouse, the Ontario preferential share would have applied — the spouse receives the first $350,000 before any division with children. That's not relevant here, but it's the single most common intestacy surprise in Ontario.

Quebec intestacy (Civil Code of Quebec)

Same result in this case: with no surviving spouse, the children split equally. Sophie and Marc each receive 50%. On the $507,775 net estate: ~$253,888 each.

Had Robert been survived by a spouse, Quebec's rules would diverge significantly from Ontario. Quebec gives the surviving spouse one-third and the children two-thirds — there is no preferential share. On a $750,000 estate, an Ontario spouse would take the first $350,000 (plus half the remainder); a Quebec spouse would take one-third ($250,000). The Ontario spouse does substantially better under intestacy.

Step 5: CRA Clearance Certificate Timelines

Neither province can distribute the estate with confidence until the CRA issues a clearance certificate under section 159 of the Income Tax Act. The certificate confirms that all tax obligations have been met. Without it, the executor or liquidator is personally liable for any unpaid tax.

The CRA clearance certificate is the same 90 to 120 day process in both provinces. The gap comes from the initial probate step: Ontario's Certificate of Appointment Without a Will typically takes 8 to 16 weeks, while Quebec's court verification runs 4 to 8 weeks. That front-end difference compounds through the entire timeline because the executor cannot gather assets, file returns, or pay debts until they have legal authority.

Decision Table: Ontario vs Quebec Estate Settlement

Quebec wins on four of six factors. Ontario's only advantage is spousal intestacy protection — a point that's irrelevant to Robert's estate (no surviving spouse) but critical for couples who rely on intestacy instead of a will.

What Robert Could Have Done: Three Planning Levers That Were Free

This $750,000 estate lost between $242,000 (Quebec) and $278,000 (Ontario) to taxes and settlement costs. Not all of that was avoidable — the RRSP income tax is baked into the ITA. But three moves, all free, would have cut the settlement overhead significantly:

1. Name beneficiaries on the RRSP

A one-page form at the financial institution. Income tax unchanged, but the $450,000 bypasses probate and executor compensation. Ontario saving: ~$29,250 (probate $6,750 + executor comp on $450K ~$22,500). Quebec saving: ~$7,000 (liquidator compensation on the bypassed amount).

2. Write a will

A basic will in Ontario costs $500 to $1,500. In Quebec, a notarial will costs $800 to $1,500. A notarial will in Quebec eliminates the court verification step entirely — $0 court fee, faster distribution, and no dépôt au greffe delay. In Ontario, a will doesn't reduce probate fees, but it eliminates the surety bond requirement, reduces legal costs, and avoids the risk of a contested estate trustee appointment.

3. Consider a spousal RRSP rollover (before the spouse died)

When Robert's wife died in 2021, her RRSP rolled to Robert tax-free as successor annuitant. Had Robert then converted the RRSP to a RRIF and begun strategic withdrawals at his lower marginal rate during 2021 to 2025, he could have drawn down $50,000 to $80,000 per year at 30 to 35% rates, sheltering excess in his TFSA. The terminal return balance would have been $250,000 to $300,000 instead of $450,000 — saving $60,000 to $80,000 in income tax.

The Decision Lever That Mattered

Province of residence created a $36,275 gap in settlement costs between Ontario and Quebec. That's real money. But the three free planning moves — RRSP beneficiary designation, a basic will, and a RRIF meltdown strategy — would have saved $90,000 to $115,000 in either province.

The lesson is not "move to Quebec to save on probate." Don't move provinces for probate savings — the math rarely justifies it against the disruption. The lesson is that provincial probate rules are the visible cost that gets all the attention, while the invisible costs — an undesignated RRSP, a missing will, a RRIF that was never drawn down strategically — are two to three times larger. Fix the invisible costs first. The provincial gap takes care of itself.