How to Amend an Estate Information Return Filed With Errors

You filed the Estate Information Return, and then you find something wrong. Maybe a bank account was left off, a house was valued too low, or you used an estimate and now have the real number. Many executors face this, and the law has a process for fixing it.

This article explains when a corrected return is needed, the deadlines the Ministry lists, what the revised return should contain and how additional tax fits in. Your facts matter, so a lawyer or accountant should confirm how this applies to your estate.

When an amended return is needed

The initial Estate Information Return is due within 180 calendar days after the estate certificate is issued, even if the estate value is $0. An amended return deals with what you learn after that. The Ministry lists three main situations.

• You used an estimated value and the actual value has now been given to the court.
• You discover that information in the return was incorrect or incomplete.
• You find property that was not known about earlier, often called subsequently discovered assets.

An omitted account and a mis-valued house usually fall under the second situation. A forgotten asset that surfaces long after the estate was settled may fall under the third.

Deadlines for amending

The Ministry's page sets out different starting points for the 60-day period, depending on why you are amending. Because deadlines can be updated, confirm the current period before you rely on it.

There is also an outer limit. A revised return is not required for errors discovered after the fourth anniversary of the day the tax became payable. That does not mean the Ministry cannot look at the estate, as the next sections explain.

What the revised return should contain

A revised return is tied to specific events. For subsequently discovered property it follows delivery of a statement under the Estates Act, and revised returns are also connected to refunds, additional tax or a deposit paid, and fulfilling an undertaking.

Like the original, the return must list assets with values, tax owing or paid, the representatives, court file details and the certificate issue date. Assets held with an adviser, dealer or financial institution may be reported as account-level totals. A return is treated as given to the Minister on the day the Minister receives it, so allow time for delivery and keep proof.

Values are measured at the date of death. The return reports the total value of real property and personal property the deceased owned at death. When you correct a figure, use the date-of-death value, not the current value.

Paying additional tax and the risks of waiting

For applications made on or after January 1, 2020, there is no tax on an estate worth $50,000 or less. Above that, the tax is $15 for every $1,000 (or part) of estate value, rounded up to the nearest thousand. If a correction raises the estate value, more tax may be owing. If the application was made before 2020, different rates apply.

The Ministry may assess or reassess the tax within four years after the day it was due, which is the day the certificate was issued. There is no time limit where a filing was missed or a misrepresentation was made. If you disagree with an assessment, a Notice of Objection must be filed within 180 days of the Notice of Assessment. A refund request must be made within 12 years of the certificate's issue date or within 2 years of a Notice of Assessment.

Penalties are serious. Failing to file as required or making false or misleading statements can bring a fine of at least $1,000 and up to twice the tax payable, up to two years' imprisonment, or both. Correcting a known error promptly is far better than leaving it.

What to do next

• Write down exactly what was wrong or missing, and the date you became aware of it.
• Get a date-of-death value for the asset, with supporting documents such as statements or an appraisal.
• Work out the deadline from the reason for the amendment and confirm it with a lawyer or accountant.
• Prepare the revised return with the full asset list, not only the changed item.
• Arrange payment of any additional tax and keep proof of delivery.
• Keep all records supporting the return for four years.

If the error is large, the estate is being distributed, or the Ministry has already contacted you, get advice before filing. Beneficiaries may also need to be told, since extra tax reduces what the estate has to distribute.

Frequently asked questions