Estate Administration Tax – Previously known as “Probate Fees”
Many clients are unaware that the Personal Property of an Estate must be inventoried and valued during the probate process and estate administration taxes are to be paid on them. Since 1998 (the year the Supreme court of Canada declared Probate fees actual taxes) while we still colloquially call them Probate Fees, they are now referred to as EAT or “Estate Administration Taxes”.
Straight from the Estate Administration Tax Act 1998:
“Tax on estate”
- (1)A tax determined in accordance with this section is payable to Her Majesty in right of Ontario by the estate of a deceased person immediately upon the issuance of an estate certificate. 1998, c. 34, Sched., s. 2 (1).
(2) If the value of the estate does not exceed $1,000, the estate is exempt from tax under this Act. 1998, c. 34, Sched., s. 2 (2).”
For the exact values owing, please refer to the Estate Administration Tax Act, 1998.
As of January 1, 2013 when an application for an estate certificate is made the Minister of Finance may reassess the tax payable for an estate for up to 4 years after the day the tax was made payable if he or she believes that there was ANY manner of fraudulent activity that lead to misleading numbers in the value of the estate (Estate Administration Tax Act, 1998 Section 4.1-4.5) A big beautiful home is most likely full of big beautiful furniture and other home accessories of significant value. Save yourself a lot of headache and avoid a potential reassessment by submitting a sound opinion of value of your estate’s personal property. This can only be achieved by hiring a professional and certified personal property appraiser.