How to Deal with an Inherited Property in Ontario.
September 23rd, 2025
Inheriting a property can be both a blessing and a challenge. Whether it’s a family home filled with memories or an investment property passed down, navigating the legal, financial, and emotional aspects can feel overwhelming. As REALTORS® working in Ontario, we’ve guided many clients through this process and put together some key steps to help you make informed decisions.
1. Understand the Legal Process
When someone passes away, their estate is handled by an executor (appointed in the will). In Ontario, many estates go through a process called probate—a court approval of the will that allows the executor to transfer or sell the property.
If you are the executor, you’ll need the Certificate of Appointment of Estate Trustee from the court.
If you are a beneficiary, the executor will handle most of the paperwork but will keep you informed of your rights.
2. Assess the Financial Implications
Unlike in some countries, Canada does not have an inheritance tax. However, there are other financial considerations:
Capital Gains: If the property is not the deceased’s principal residence, capital gains tax may apply on the increase in value from the time they purchased it to the time of death.
Ongoing Costs: Property taxes, utilities, insurance, and maintenance remain your responsibility until the property is transferred or sold.
Mortgage or Liens: Any outstanding debt secured against the home must also be settled.
3. Decide What to Do With the Property
You typically have three options:
Keep It – Move in yourself or keep it as a rental. This can be a good long-term investment, but remember to budget for upkeep and management.
Sell It – For many families, selling is the best choice. A REALTOR® can help you determine market value, prepare the home for sale, and handle negotiations.
Rent It Out – If multiple beneficiaries are involved, renting may be a way to generate income while deciding on a long-term plan.
4. Work With Professionals
Dealing with an inherited property requires a team of trusted experts:
Lawyer – Handles probate, title transfer, and legal disputes.
Accountant – Advises on tax implications and estate planning.
REALTOR® – Provides a market evaluation, manages the sale, and ensures maximum value.
Appraiser/Inspector – Gives an accurate picture of the property’s condition and worth.
5. Navigate the Emotional Side
An inherited home often carries strong emotional ties. It’s natural to feel conflicted.
Take time to:
Remove personal belongings gradually.
Involve all family members in decisions.
Lean on professionals to handle the logistics so you can focus on the personal side.
Final Thoughts
Inheriting a property in Ontario doesn’t have to be overwhelming. By understanding the legal process, assessing financial impacts, and working with the right professionals, you can make the best decision for your situation—whether that’s keeping, selling, or renting the property.
If you’ve recently inherited a home and aren’t sure where to start, reach out to a trusted REALTOR®. We can provide a no-obligation consultation to walk you through your options and help you maximize the value of your inheritance.