Which Assets Are Not Subject to Estate Administration Tax in Ontario?

Assets the deceased no longer owned at death are left out of the value used to calculate Estate Administration Tax. The tax is charged only when an estate certificate is applied for and issued, and if none is applied for or issued, no tax is owed.

Jointly owned assets that pass automatically to the surviving owners are left out. So is insurance paid to a named beneficiary, and so are RRSPs, RRIFs, TFSAs and RPPs with a beneficiary designation or declaration. If the estate is the beneficiary, those plans are included, and insurance counts when the proceeds are payable to the estate. A tenant in common's share becomes part of the estate. Real estate outside Ontario and CPP death benefits are also left out.

Whether an asset qualifies depends on how it is held and who is named. Business interests are included in the estate's value, though a certificate limited to the assets in a specific will counts only those assets. Because errors can mean extra tax, confirm your situation with a lawyer or accountant.