The Skinny on What You Need to Know About the New Estate Information Return Requirements
As of January 1, 2015, all estate administrators must now complete and file an Estate Information Return Form. The form must be filed within 90 calendar days after a Certificate of Appointment of Estate Trustee has been issued. This only applies to all Certificates of Appointments that were issued after January 1, 2015.
A revised filing must be submitted if the initial form is incomplete or has incorrect information; if the initial form had estimated values used for estate assets; or if the estate administrator discovers property not included in the value of the estate that was declared in the application for a Certificate of Appointment of Estate Trustee. When filing a revised form, the form must be submitted to the Ministry of Finance within 30 calendar days of the estate administrator becoming aware of the value of the asset that needs to be amended.
The Estate Administration Return Form is very detailed and requires specific information regarding estate assets.
Section A
Information regarding the issuance of the Certificate of Appointment of Estate Trustee; such as the type, the date it was issued, the court file number, and if a deposit was paid.
Section B and C
Information pertaining to the deceased and the estate administrator.
Section D
Information regarding real estate. Specific information regarding the properties assessment roll number and property identifier number (PIN) are required, in addition to the municipal address and value of the property at the time of death.
Section E
Applicable for all bank accounts that the deceased owned at the time of their death.
Section F
All investments are to be listed, including shares, stocks, and bonds. The estate administrator must confirm the name of the issuer, number of units (if applicable), account numbers, broker/agent name and address, and the fair market value as of date of death.
Section G
All information pertaining to vehicles and vessels. This includes the vehicle identification number (VIN), or hull serial number (HIN), make, model, year, and fair market value as of date of death.
Section H
All other property. This may include household contents, art, jewelry, loans receivable, business interest, etc.
Section I
Where the estate administrator summarizes the total value of the estate, confirms the net amount of tax owing and certifies the amounts disclosed on the form are true, correct and complete.
Filing information
Failure to file the required Estate Information Return can result in the estate administrator being found guilty of an offence, and may result in a fine or even imprisonment.
There is no requirement for an estate administrator to file an estate information return form if:
- The application for Certificate of Appointment was submitted to the Court prior to January 1, 2015
- The Certificate of Appointment was never issued
- The estate administrator is acting as a succeeding Estate Trustee (With a Will, Without a Will, Limited to Assets Referred to in the Will, or During Litigation).
It is important to note that even estates that do not exceed $1,000, and are exempt from paying estate administration tax, are not exempt from the filing requirement for the estate information return.
Conclusion
What does this all mean for estate administrators? In short, you must be aware of the 90-day filing deadline, and ensure that you keep information pertaining to the estate assets even after they may be liquidated. The Minister of Finance can review any estate up to four years after the date of issuance of the Certificate of Appointment.