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Estate Trustees Can Breathe Easier This Year

Estate Trustees can breathe a little bit easier starting January 1, 2020Recent changes announced that the Province of Ontario’s budget which is effective January 1, 2020 will have significant changes that will benefit the Estate Trustees. 

Tax Elimination

It is proposed that the Estate Administration Tax of 0.5% will be eliminated on the first $50,000 in the deceased person’s estate. This sounds good and amounts to a savings of $250. 

If the estate has more than $50,000, the Estate Administration Tax will remain at the current rate of 1.5%. For example, if the Estate is valued at 1 million dollars, the Estate Administration Tax payable to the Ontario Ministry of Finance will be $15,000. 

Days to File has Increased

Perhaps the most significant change is that the Estate Information Return now must be filed within 180 days of receiving the Certificate of Appointment as an Estate Trustee with a Will. This has increased from the current 90 days. 

This gives the Estate Trustee an additional 3 months to compile the information needed in the Estate Information Return. This return is a snapshot of what the deceased person owned, minus what they owed on the date of their death. 

There are two ways to file the Estate Information Return. Either online as a fillable PDF, or the form can be printed out and then mailed in. Please find the PDF’s here.

The Estate Information Return is 7 pages and the details of the Estate Assests including:  

  • Real Estate in Ontario 
  • Bank Accounts 
  • Investments 
  • Vehicles and Vessels 
  • Other Assets 

These five areas of assets are totaled to report and pay the Estate Administration Tax on the Total Value of the Estate Assets. 

Until next time, 

Kat 

Katherine Downey is the #1 Funeral Preplanning Professional in Canada for the fourth time. She is a professional educator, author, licensed funeral director and insurance advisor. Not only is she a Certified Professional Consultant on Ageing and an Executive Advisor, but she is compassionately understanding.  To set an appointment or have your questions answered, please contact Kat directly.   

Estate Planning – Where Do I Put My Money?

funeral preplanning expert MississaugaBen Franklin said “In this world nothing can be said to be certain, except death and taxes.” This statement was made centuries ago and still rings true today. When you think about your estate, do you struggle with where to put your money? Are you getting a tax refund this year? Have you maxed out your RSP and TFSA? Yes? If this is your fortunate financial situation, well done and good for you! What’s next? Read more

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Is Cremation Right for You? – 12 Questions to Consider

cremation2Increasingly more people are preplanning and selecting cremation as their preferred eventual form of disposition. The rationale that people share with me is that they feel it is easier for the family and that it will be less expensive. Very likely this is the case, yet I would ask you to consider the following 12 questions to be sure this is right for you and that it is the most suitable option that reflects your values, wishes, and the needs of your family. Read more

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What is a State Funeral & How is it Organized?

state funeralThe recent state funeral to honour the former Federal Finance Minister Mr. Jim Flaherty, peaked my interest as to how a State Funeral is organized in Canada.

Under the asepsis of the Department of Canadian Heritage (DCH), a state funeral is a public event, held to honour and commemorate present and former Governors Generals, Prime Ministers and sitting members of the Ministry. Also a state funeral may be offered to an eminent Canadian at the discretion of the Prime Minister.  A State funeral offered, organized and executed by the Government of Canada – Governor General-in-Council, with the DCH as the lead agency, offers the public an opportunity to pay their respects to the deceased.

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Airport Regulations Regarding Flying With Cremated Remains

travelling with cremated remains People often ask if you are allowed to fly with cremated remains and what the airport or government regulations would be. The answer is, yes, you can fly with cremated remains. Often people want to take their loved one home and bury, scatter or entomb their cremated remains outside of Canada. Cremation containers are allowed on the plane with you providing you meet certain criteria.

In addition to accompanying documentation such as the: Cremation Certificate and Funeral Directors Proof of Death and Letter of Contents; x-ray screening of cremated remains will be taken at pre-boarding airport security checkpoints, to ensure there are not prohibited items inside the remains.

On July 26, 2013 Transport Canada (TC) released regulatory changes requiring the Canada Air Transport Security Authority (CATSA) to follow these procedures regarding the X- ray screening of cremation containers in checked baggage or carry- on baggage.

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