Estate administration tax

Part of the role of an estate trustee is to deal with the taxes of the estate. That is, filing all the relevant tax returns and paying any outstanding tax.

If you apply for a Certificate of Appointment of Estate Trustee from a court, then you also need to deal with estate administration tax. This is paid as a deposit when the estate trustee applies for this certificate.

Formerly known as probate fees, this tax is payable on the total value of the estate of a deceased person. It includes real estate, bank accounts, investments and all other property. The payment comes out of the estate.

The current tax rate is:

  • $0 for each $1,000, or part thereof, of the first $50,000 of the value of the estate, and
  • $15 for each $1,000, or part thereof, of the value of the estate exceeding $50,000.

An estate trustee may also need to file an Estate Information Return (EI Return). The EI will include information about the deceased, as well as details about assets and property. The Ontario Ministry of Finance must receive it within 90 days after the Certificate of Appointment of Estate Trustee has been issued.

For more information about any aspect of estate taxation, contact our Estates Law Group.

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