Small Estates Also Matter: How Ontario’s New $50,000 Small Claims Court is a Game Changer for Estate Disputes

As of October 1, 2025, Ontario increased the monetary jurisdiction of the Small Claims Court from $35,000.00 to $50,000.00.  This long-awaited reform increases access to justice for countless Ontarians involved in civil disputes. This change allows more families, beneficiaries, and professionals to pursue estate-related financial claims in a faster, simpler, and more affordable forum. For many, it bridges the gap between doing nothing (because Superior Court is too expensive) and seeking fair compensation.  However, there are limitations and trade-offs that should be considered before proceeding in Small Claims Court.

 

A Step Toward Greater Access to Justice


A claim that may have been prohibitively expensive to bring in Superior Court may now be viable in Small Claims Court.  Smaller estate beneficiary disputes, estate debts, or solicitor negligence claims can be brought before the court, without having to potentially spend tens of thousands of dollars in legal fees. Some of the benefits:

  1. Small Claims Court offers streamlined rules, plain-language forms, and lower costs.
  2. Filing fees and disbursements are modest compared to the Ontario Superior Court.
  3. You can hire a paralegal or represent yourself, further reducing legal expenses.
These features make justice more accessible to ordinary Ontarians, especially in estate cases where beneficiaries or creditors are fighting over modest but meaningful sums, nonetheless.

 

Access Comes with Limits


Without doubt, the increased limit is a positive change; however, litigants still need to be mindful of the following:

  1. Even if your claim is worth more, if you want to proceed in Small Claims Court, you must limit your claim to no more than $50,000.00.
  2. If your claim is for more than $50,000.00, to proceed in Small Claims Court, you must abandon the excess or bring your claim in Superior Court, where the process is often slower, costlier, and much more procedurally complex.
  3. Legal costs in Small Claims are capped. Even if you win, you’ll recover far less of your fees than you would in Superior Court.
 

A Positive Step, But Still Not a Perfect System


The Small Claims Court is faster and cheaper, however:

  1. Self-represented parties still face challenges navigating the process effectively. The process may be simpler, but at the end of the day, it's still court.
  2. Court backlogs and scheduling delays continue to affect timelines in some regions, particularly in Toronto.
  3. Even if you succeed, enforcing a judgment or settlement can be costly, complicated and uncertain when the other party refuses to pay. Collecting and enforcing a judgment or settlement can become its own litigation.
  4. Complex estate matters still require Superior Court intervention, where costs can quickly escalate beyond reach.

Case Spotlight: Swift-Arabski v Staats, 2013 CanLII 41982 (ON SCSM)


Two daughters sued their late mother’s lawyer for failing to sever joint tenancy on two properties, which caused assets to pass outside the estate.

The court found the lawyer negligent for not following clear instructions, awarding $7,069.38 in damages, mainly covering the cost of correcting the mistake.

This case demonstrates how beneficiaries can use Small Claims Court for estate-related negligence or monetary loss, as long as the claim is within the financial limit and doesn’t involve complex issues.

Frequently Asked Questions About Small Claims Court and Estate Disputes in Ontario


  1. Why is the Small Claims Court increase to $50,000.00 a game-changer?
Because it allows many smaller estate-related disputes to be handled quickly and affordably, without the full weight of Superior Court procedure.
  1. Can I challenge a will in Small Claims Court?
No. Only the Superior Court of Justice can hear will challenges or determine a will’s validity.
  1. What types of estate cases fit in Small Claims Court?
Simple monetary claims such as debts, unpaid inheritances, or breaches of simple agreements (provided they are within or limited to $50,000).
  1. Who do I sue?
The estate trustee (executor) must be named as the defendant. You cannot sue “the estate” directly.
  1. Can I hire a paralegal or self-represent?
Yes. Paralegals are licensed for Small Claims matters.  Also, many people represent themselves.
  1. What if I lose my case?
You may have to pay limited costs that usually amount to a small percentage of the claim. It’s far less risky than losing in Superior Court.
  1. Can I recover my legal costs if I win?
Only partially. Small Claims cost awards are capped and won’t fully reimburse your legal expenses.
  1. Can I appeal a decision?
Yes, but only a lawyer can represent you at the appeal level.  You can represent yourself but do so at your own peril.


At Derfel Estate Law, we help clients determine whether their estate dispute belongs in Small Claims Court or the Superior Court of Justice, and we work with both lawyers and paralegals to deliver cost-effective solutions.