Is there an estate tax or inheritance tax in New Brunswick?
This answer covers the law of New Brunswick.
The tax the Probate Court charges in New Brunswick is a probate tax, calculated on the value of the whole estate, and it is paid before letters issue. It is $200 if the estate does not exceed $20,000, and rises in tiers above that, to $600 plus $15 per $1,000 or part over $100,000. For real property, the actual value of any mortgage or other encumbrance is deducted.
Income tax is separate. A final T1 return is due April 30 of the following year for a death from January 1 to October 31, or six months after the date of death for a death from November 1 to December 31. A different filing date applies if the deceased or a spouse or common-law partner was operating a business. The estate may also need a T3 return, due 90 days after the trust's tax year-end. Before distributing, the representative should consider a clearance certificate, since without it they are personally liable up to the value of the assets distributed.
Whether any other taxes apply depends on what the deceased owned and on your situation, so it is worth confirming with a lawyer.
Key takeaways
- The probate tax is $200 if the estate does not exceed $20,000, with higher tiers above that.
- Probate tax is calculated on the value of the whole estate, with the actual value of any encumbrance on real property deducted.
- The final T1 return is due April 30 of the following year for a death from January 1 to October 31, unless the deceased or a spouse or common-law partner was operating a business, in which case the filing date is June 15 of the following year, though any balance owing is still due on the regular date.
- Without a clearance certificate, the representative is personally liable up to the value of assets distributed.