The Estate Trustee
As an estate trustee, you are responsible for settling an estate according to the deceased’s wishes.
With so many tasks to complete and so many people and organizations to deal with—including beneficiaries, legal advisors and tax authorities such as Canada Revenue Agency (CRA)—settling an estate is a complicated undertaking, especially when you’re also grieving the loss of a family member or friend.
If you have been appointed as an executor, but do not feel that you can administer the estate or need help with certain duties, a lawyer can offer you a variety of services, including assistance with all of your duties or only those you specifically choose.
Estate administration tax is charged on the total value of the deceased’s estate. The total value of the estate is the value of all assets owned by the deceased at the time of death, including:
- Real estate in Ontario (less encumbrances)
- Bank accounts
- Investments (e.g., stocks, bonds, trust units, options)
- Vehicles and vessels (e.g., cars, trucks, boats, ATVs, motorcycles)
- All property of the deceased which was held in another person’s name
- All other property, wherever situated, including:
o goods
o intangible property
o business interests, and insurance, if proceeds pass through the estate, e.g., no named beneficiary other than ‘Estate’.
If the court issued a Certificate of Appointment of Estate Trustee with a Will Limited to the Assets Referred to in the Will, only those assets included in such will, are to be included.
If the court issued:
- a Confirmation by Resealing of Appointment of Estate Trustee
- a Certificate of Ancillary Appointment of an Estate Trustee with a will, or
- a Certificate of Appointment of Foreign Estate Trustee’s Nominee as Estate Trustee without a Will, only those assets located in Ontario are to be included. Encumbrances against any assets other than real estate cannot be deducted from the value of the assets.
Assets that the deceased had before death but not at the time of death, such as insurance payable to a named beneficiary, assets where there is joint ownership with right of survivorship and real estate outside of Ontario are not included in the value of the estate.
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
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.
Exceptions
There is no requirement to file an Estate Information Return with the Ministry of Finance if you have received any of the following:
- a Certificate of Appointment of Succeeding Estate Trustee with a Will
- a Certificate of Appointment of Succeeding Estate Trustee with a Will Limited to the Assets Referred to in the Will
- a Certificate of Appointment of Succeeding Estate Trustee without a Will
- a Certificate of Appointment of Estate Trustee During Litigation.
- There is also no requirement to file an Estate Information Return if:
- you applied for the estate certificate prior to January 1, 2015
- you were not issued an estate certificate after an Application for Certificate of Appointment of Estate Trustee was made (e.g., your application was withdrawn), or the full amount of estate administration tax has been paid in respect of a deceased’s estate, and there is no change to be reported about the assets of the estate, but a subsequent estate application is required to be filed (such as to appoint a succeeding Estate Trustee), and no additional tax is payable.
For information about estates and applying for a Certificate of Appointment of Estate Trustee or for assistance in administering the estate of a deceased loved one, please contact us.
