A NEW SOURCE OF PROVINCIAL REVENUE

Hi Ev

here is yet another Provincial Liberal Tax Grab , I heard about this on a Toronto radio talk show yesterday which was the very first time I had heard word one about it , A funeral director from Bancroft called in to let Bill Carol in on this non publicised ghoulish tax , According to the director the tax rates have been increased and the time that the estimated worth of the deceased needs to be reported to the province is a mere 90 days  from the time of death or the appointed trustees are in default of the law , Quite rightly the funeral director pointed out that estates can be complicated and further complicated by grieving loved ones such that 90 days is incomprehensible , but no matter, the government wants what they believe is theirs whether your dead or alive , This dirty little tax secret seems to have slipped through everyone’s radar. High time it made the front pages !!

Who pays estate administration tax?

The tax is imposed on the estate of the deceased person.

The tax is paid as a deposit when the estate representative applies for a Certificate of Appointment of Estate Trustee with the Superior Court of Justice.

Cheques for paying the estate administration tax are made payable to the Minister of Finance.

Tax rates

The current tax rates are:

• $5 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.

Note: There is no estate administration tax payable if the value of the estate is $1,000 or less.

The estate administration tax is calculated on the total value of the estate. For example, for an estate valued at $240,000 the tax would be calculated as follows:

• $5 per thousand for the first $50,000 of the estate

• $50,000 ÷ $1,000 = $50
• $50 X $5 = $250

Plus

• $15 per thousand for the remaining $190,000 of the estate

• $240,000 - $50,000 = $190,000
• $190,000 ÷ $1,000 = $190
• $190 X $15 = $2,850

For a total of $3,100 ($250 + $2,850) payable to the Minister of Finance.

View the table that lists the estate administration tax payable for estates valued between $1,000 and $5 million. Round the value of the estate up to the nearest thousand to see the amount of tax payable.

Filing an Application for Certificate of Appointment of Estate Trustee

For information about estates and applying for a Certificate of Appointment of Estate Trustee, visit the Ministry of the Attorney General's website.

Filing an Estate Information Return

Beginning January 1, 2015, an Estate Information Return must be received by the Ministry of Finance within 90 calendar days after a Certificate of Appointment of Estate Trustee has been issued. However, this does not apply to anyone who applied for a Certificate of Appointment of Estate Trustee prior to January 1, 2015.

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