How Do You Value Estate Assets to Calculate Estate Administration Tax in Ontario?

You value estate assets at their fair market value at the time of death. Ontario real estate is valued at its appraised value on the date of death, less encumbrances such as mortgages or liens, even if it sells for more or less shortly afterward.

Bank accounts, including those at foreign banks, investments, vehicles and vessels wherever located, and other property wherever situated are included. Only encumbrances on real property can be deducted, so funeral expenses, lawyer's fees, loans, vehicle debt and credit card debt do not reduce the value. The estate's value is rounded up to the nearest thousand dollars when the tax is calculated. Form 74A asks for the total value of real property, the total value of personal property and the total estate value.

You need to be able to support each value with documents, such as statements or an appraiser's opinion of value. For complex assets, a professional appraiser may help recommend a value. How to value household items depends on what they are, so a lawyer or accountant can help you confirm a reasonable approach.