Can I reopen an Ontario estate after probate if I find more assets?
Finding more assets after probate means filing an amended Estate Information Return. If you are the estate representative and you find a new asset, or learn the original return was incorrect or incomplete, you must file an amended return within 60 days of becoming aware of it. Any extra tax is then payable.
The tax is based on the estate's value: nothing on the first $50,000, then $15 for every $1,000, or part of $1,000, above that, and how that applies to the extra amount depends on your situation. The new asset is valued at fair market value on the date of death, supported by documents such as account statements or an appraiser's opinion.
If you hold a Small Estate Certificate, you can file Form 74.1E for an amended certificate, but only if the combined value stays at $150,000 or less. Do not wait: failing to file, or making false or misleading statements, can mean a fine of at least $1,000 and up to twice the tax, and possibly imprisonment. The Ministry of Finance can reassess within four years, or at any time if a return was not filed or there was misrepresentation or fraud. A lawyer or accountant can confirm how this applies to your estate.
Key takeaways
- You must file an amended Estate Information Return within 60 days of learning of a new asset or an error in the original return.
- Any extra tax is payable once the amended return is filed, and how it works out for your estate depends on your situation, so it is worth confirming with a lawyer or accountant.
- Jointly held assets that pass automatically to the survivor, and registered plans with a named beneficiary, are not counted in the estate value.
- Small Estate Certificate holders can seek an amended certificate on Form 74.1E only if the combined value stays at $150,000 or less.