Can Estate Administration Tax Be Reduced by Valuing Assets Lower in Ontario?

No, the tax follows the estate's value, and that value is not something you choose: assets are valued at their fair market value at the time of death. Real property is valued at its appraised value at the date of death, even if it sells for more or less shortly afterward.

Estate representatives must be able to back up the values with supporting documents, such as statements or an appraiser's opinion of value, and for complex assets a professional appraiser with expertise in that area may help recommend a value. For private company shares, the general fair-market-value rule applies, so the right approach depends on the facts and is worth confirming with a lawyer or accountant. Some items properly lower the figure: a mortgage or lien registered against Ontario real property can be deducted, and jointly owned assets that pass automatically to a surviving owner are left out.

Understating value is risky. A false or misleading statement can lead to a fine of at least $1,000 and up to twice the tax payable, imprisonment for up to two years, or both. If there was a misrepresentation, the Ministry may assess or reassess at any time.