PROBATE AND ESTATE MATTERS
Although Ontario does not impose estate or death taxes, in certain circumstances, when an individual passes away, the assets of the Estate may be subject to an Estate Administration Tax (also known as “Probate”). Probate is the process wherein the Will is validated by the Court and a Certificate of Appointment of Estate Trustee (with or without) a Will is issued. As part of the process, the estate must be valued and estate administration fees must be paid to the Minister of Finance. At present, the estate administration fees in Ontario are $5 for each $1,000 up to a maximum of $50,000 (which is equal to $250), plus an additional $15 for each $1,000 over and above the $50,000 threshold.
In January of 2015, the Ministry of Finance created the Estate Information Return which must be filed by all individuals who have received a Certificate of Appointment of Estate Trustee (with or without) a Will after January 1, 2015. There are certain exceptions to this general rule; however, typically, an Estate Information Return is due within 90 days of the date of the Certificate of Appointment of Estate Trustee (with or without) a Will. In the event that the Estate Information Return is received by the Ministry of Finance within the 90 day window, the Estate is subject to a 4-year period wherein the Ministry of Finance can assess/reassess the Estate. Failure to submit the Estate Information Return within the 90 day window, subjects the Estate Trustee to penalties and an unlimited timeframe within which the Ministry of Finance can assess/reassess the Estate.
With proper planning, estate administration fees can be minimized or avoided all together thereby negating the requirement to file an Estate Information Return; however, this will depend on your circumstances and wishes. Law In Motion Professional Corporation is familiar with estate matters and will work with you and your accountants to ensure that your estate is structured in the most advantageous way for yourself and your heirs and can also provide assistance throughout the process.
- Application for a Certificate of Appointment of Estate Trustee with a Will: $2,500.00 plus disbursements and HST (application only)
- Application for a Certificate of Appointment of Estate Trustee without a Will: $3,500.00 plus disbursements and HST (application only)
- Estate Information Return: $700.00 plus disbursements and HST
- Court Appearances: based on a rate of $200.00 per hour (plus disbursements and HST)