Can an Executor Pay Estate Administration Tax From the Estate's Bank Account Before Probate in Ontario?
The tax is paid when you file the probate application, so you need a way to pay before the certificate is issued, and the rules say the estate pays it rather than you personally. Whether the deceased's bank account can be used for that depends on the bank and the facts, so confirm it with a lawyer or the bank before you rely on it.
At the court office, you can pay by cash or debit where available, certified cheque, a cheque from a solicitor or firm trust account, a cheque from a trust company account, or a bank draft. Cheques and drafts are made payable to "Minister of Finance". For certificates applied for on or after January 1, 2020, no tax is payable on an estate worth $50,000 or less, and above that the tax is $15 for every $1,000 (or part thereof) over $50,000.
If no certificate is applied for or issued, no tax is owed. A deposit can be refunded through the Superior Court of Justice, but only if no certificate has been issued. Even when no tax is owed, the estate must still file an Estate Information Return after the certificate is issued.
Key takeaways
- The tax is paid as a deposit when the probate application is filed, and it becomes the tax once the certificate is issued.
- The estate pays the tax, not the estate representative personally.
- At the court office you can pay by cash or debit where available, certified cheque, solicitor or trust company cheque, or bank draft made payable to "Minister of Finance".
- Whether a frozen bank account can fund the payment depends on the facts, so confirm it with a lawyer and the bank.