Amendments to the Ontario Estate Administration Tax Act scheduled to take effect Jan. 1, 2013 will tighten rules around the payment of probate fees, causing an increase in tax revenues for the province and potentially severe consequences for non-compliance.
Currently, the Office of the Ontario Attorney General administers the tax, commonly referred to as “probate tax.” When an application to probate a will is made, Estate Administration Tax (EAT) is paid on the declared asset values. Under the current application forms, there is minimal information only regarding the assets to be disposed of under the will. The application for a certificate of appointment lists only the total value of all personal property and the net value of real estate. Tax is 1.5 per cent of the total value other than on the first $50,000 where the rate is a flat $250. (more…)