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.   

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