In Ontario, a small estate is defined as an estate valued at $150,000 or less. In recognition of their size and limited assets, the Estates Act enforces special rules and procedures regarding the administration of small estates.
A notable example of a special consideration in small estates is the surety bond requirement. An estate administration bond is posted by an estate trustee as assurance to the court that they will abide by their duties pursuant to the will (if any) and the law. The bond is a form of insurance that covers financial losses to the estate due to the dishonest or improper acts of an estate trustee. Section 35 of the Estates Act states that, unless otherwise provided by law, estate trustees are required to provide a surety bond to the Accountant of the Superior Court of Justice. However, pursuant to section 36(3) of the Estates Act, these bond requirements do not apply to small estates unless a beneficiary is a minor or incapable.
The recent decision In the Estate of David Cole Conly, deceased, 2026 ONSC 3020 provides a helpful reminder that estate trustees should be mindful of the special rules and procedures concerning small estates. Lawyers should also familiarize themselves with these rules and procedures to avoid needless expenses, delays in administration and to preserve the court’s valuable resources.
David Cole Conly (“David” or the “Estate”, respectively) died suddenly on April 14, 2026. David’s parents (the “Parents”) applied for a certificate of appointment of estate trustee (“CAET”) of the Estate. The Estate had a total of $76,000 in assets.
Justice Leach granted the Parents a CAET considering that David never married or had children and the Parents were the sole beneficiaries of the Estate. The Parents also executed Renunciation and Consent” forms which consented to their joint appointment as estate trustees without a will and “an order dispensing with the filing of an estate administration bond”.
The Parents’ CAET application was directed to a judge due to their request to dispense with the bond. However, Justice Leach noted that such a direction was unnecessary.
The Estate fell below the $150,000 threshold. It was considered a small estate and therefore, section 36 of the Estates Act applied. As none of the beneficiaries of the Estate were minors or incapable, there was no need for court order dispensing with the bond because a bond was never required in the first place.
Justice Leach noted that the court should not be tasked with making such unnecessary orders. Despite the clear rules regarding bonds in small estates, unnecessary applications to dispense with the bond in small estates are still filed on a regular basis. Such applications waste valuable court resources and cause needless expenses for applicants, delays in processing times of CAET applications and delays in the administration of small estates. As such, court staff, counsel and judiciary should refrain from devoting time, expenses and resources on obtaining unnecessary court orders.
