What Is an Estate Information Return and When Must It Be Filed in Ontario?
An Estate Information Return must be filed within 180 calendar days after the estate certificate is issued. It goes with Estate Administration Tax, which applies to estate certificates applied for on or after January 1, 2020. Because the 180 days run from the date the certificate is issued, not from the date of death, the clock starts later than many people expect.
The tax works on a simple scale: nothing on the first $50,000, then $15 for every $1,000 (or part) above that. Jointly owned assets that pass automatically to the other owner, and RRSPs, RRIFs, TFSAs and pension plans with a beneficiary designation, are left out of the estate's value for the tax. Funeral expenses cannot be deducted when the tax is calculated.
The return's exact contents and the penalties for filing late or filing incorrectly depend on the current rules and the facts of the estate, so confirm them with a lawyer before you file. If you are the estate trustee, note the filing date as soon as the certificate arrives, and keep records of how you valued each asset.
Key takeaways
- The Estate Information Return is due within 180 calendar days after the certificate is issued.
- Estate Administration Tax has no tax on the first $50,000, then $15 for every $1,000 (or part) above that.
- Jointly owned assets that pass automatically, and registered plans with a beneficiary designation, are excluded from the estate's value for the tax.
- Penalties and the exact contents of the return depend on current rules, so confirm them with a lawyer before filing.