In Ontario, an author’s copyrights and future book royalties are considered estate assets. Executors must obtain a professional valuation of these future revenue streams to accurately pay the Estate Administration Tax (EAT), which is roughly 1.5% on estate assets exceeding $50,000 CAD.
When a gifted writer or author passes away in cities like Toronto, Ottawa, or London, their stories live on—and so do the financial rights to their life’s work. 📖 Managing an estate that includes intellectual property (IP) is vastly different from simply selling a family home or closing a checking account. In Canada, copyright protection generally lasts for the life of the author plus an additional 70 years following the end of the calendar year of their death.
For an executor, this means you are not just wrapping up the past; you are managing a revenue stream that will continue for decades. If the author had published books, articles, or screenplays, the right to receive those ongoing royalties must be officially transferred to the beneficiaries named in their will. Doing this requires navigating both federal intellectual property laws and provincial estate laws.
Handling intellectual property in probate is a highly specialized task. ⚠️ It is strongly recommended to browse our directory to find an experienced Ontario estate lawyer or law firm. They can assist you in applying to the Superior Court of Justice for the proper legal authority to deal with international publishing houses and the Canada Revenue Agency (CRA).
Step-by-Step Process in Ontario for Probating Copyrights
Whether the deceased author was a self-published novelist in Mississauga or a widely acclaimed academic in Kingston, the legal steps to secure and transfer their copyrights generally follow this path.
Step 1: Locate Publishing Agreements and Contracts
Your first duty as an executor is to find all existing publishing contracts. 🔍 These documents dictate how royalties are paid, whether the rights revert to the author after a certain period, and who the current literary agent is. You must immediately notify the publishers and literary agents of the author’s passing so they can freeze royalty payouts until the estate is formally set up.
Step 2: Obtain a Professional IP Valuation
To file for probate in Ontario, you must declare the total value of the estate as of the date of death. Valuing a house is easy, but valuing future book sales is complex. Your lawyer will likely help you hire a Chartered Business Valuator (CBV) or an IP specialist. They will analyze historical royalty statements to estimate the “fair market value” of the copyright to calculate the Estate Administration Tax.
Step 3: Apply for a Certificate of Appointment
With the valuation in hand, your lawyer will file an application at the Superior Court of Justice for a Certificate of Appointment of Estate Trustee (formerly known as probate). 📝 This court order is the golden ticket. Publishers and literary agents will absolutely refuse to redirect royalty cheques to you or the beneficiaries without seeing a court-certified copy of this document.
Step 4: Manage the Estate Income and CRA Taxes
While waiting for the estate to close, royalties will continue to accrue. You must open an estate bank account to receive these funds. Furthermore, the CRA treats royalties received after death differently depending on how the will is structured. You will need an accountant to file a “Rights or Things” return to ensure the estate is not penalized by heavy taxes.
Step 5: Transfer Copyright to the Beneficiaries
The final step is to formally assign the copyright to the heirs. 🔮 Your lawyer will draft an “Assignment of Copyright” document. You will then provide this assignment, along with the Certificate of Appointment, to the publishers so they can update their payroll systems to pay the beneficiaries directly for the remaining 70-year copyright term.
How Much Does it Cost in Ontario?
Probating an estate with intellectual property involves unique professional fees. As of May 2026, executors in Ontario should anticipate the following estimated costs in CAD:
- Estate Administration Tax (EAT): The province charges $15 CAD for every $1,000 of estate value over $50,000. If the copyrights are valued at $100,000, the EAT on that portion would be $1,500 CAD.
- Professional IP Valuation: Hiring an expert to calculate future royalties generally costs between $3,000 and $10,000 CAD, depending on the author’s catalogue size.
- Estate Lawyer Fees: Retaining a specialized law firm typically costs between $350 and $700 CAD per hour, or they may charge a percentage of the total estate value (often 2% to 5%).
| Type of Intellectual Property | EAT Valuation Requirement | General Protection Duration |
| Published Book Royalties | Must be appraised (Future Value) | Life + 70 Years |
| Unpublished Manuscripts | Nominal value until sold | Life + 70 Years |
| Self-Published (e.g., Amazon KDP) | Based on historical monthly data | Life + 70 Years |
How Long Does the Process Take?
Administering IP can significantly delay the distribution of the estate.
- IP Valuation: Evaluating a complex catalogue of royalties usually takes 1 to 3 months.
- Obtaining Probate: Depending on the backlog at the local Superior Court of Justice, receiving the Certificate of Appointment takes 6 to 10 months.
- Publisher Transfers: Once probate is granted, updating contracts with international publishers typically takes 4 to 8 weeks.
Frequently Asked Questions (FAQ)
What is a “Literary Executor”?
Many authors name a specific Literary Executor in their will, separate from their primary executor. This person is usually an industry professional tasked exclusively with managing the creative decisions, marketing, and publishing of the deceased’s works, while the primary executor handles the standard financial assets.
Does the 70-year copyright rule apply to older books?
In late 2022, Canada extended its copyright term from 50 years to 70 years after the author’s death. This generally applies to any author who died on or after January 1, 1972. If the author died before 1972, their works are likely already in the public domain.
Can we just sell the copyright instead of keeping it?
Yes. If the will allows the executor to liquidate assets, you can sell the entire copyright catalogue to a publishing house or an IP investment firm for a lump sum. This cash is then distributed to the beneficiaries, saving them from managing complex annual tax returns.
How does the CRA tax ongoing book royalties?
Once the copyright is transferred to the beneficiary, the annual royalties they receive are treated as taxable income. They must declare these payments on their personal T1 General tax return under Canadian tax laws.
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