- For resealing, ancillary and foreign nominee certificates, only assets located in Ontario are used to calculate the tax.
- Real estate outside Ontario is left out of the estate's value.
- Ontario real estate is valued at its appraised value on the date of death, less encumbrances like mortgages.
When someone dies living elsewhere but owned Ontario property or bank accounts, families often worry that the whole estate will be taxed in Ontario. The rules are narrower than that.
This article explains which assets count, how certain certificates are treated, and what filing follows. Each case turns on its facts, so a lawyer or accountant can confirm the details for your situation.
The tax follows the certificate
Estate Administration Tax is charged only when an estate certificate (probate) is applied for and issued in Ontario. If no certificate is applied for or issued, no tax is owed.
The tax is paid as a deposit when the application is filed with the court. Once the certificate is issued, the deposit becomes the Estate Administration Tax. The estate pays it, not the estate representative personally.
The application form asks for the total value of real property, the total value of personal property, and the total estate value. That is why it helps to know early which assets belong in each figure.
Resealing and similar certificates
For resealing, ancillary and foreign nominee certificates, only assets located in Ontario are used to calculate the tax. Assets elsewhere do not raise the Ontario tax in those cases.
For certificates applied for on or after January 1, 2020, no tax is payable on a value of $50,000 or less. Above that, the rate is $15 for every $1,000 (or part thereof) over $50,000. The estate's value is rounded up to the nearest thousand dollars for the calculation.
Different certificates can change the picture. If the court issues a certificate limited to the assets in a specific will, only the assets in that will count toward the estate's value. No tax is payable on a Certificate of Appointment of Succeeding Estate Trustee, or on a Certificate of Appointment of Estate Trustee During Litigation.
Which assets count
- Ontario real estate, at appraised value on the date of death, less encumbrances such as mortgages or liens.
- Bank accounts, including at foreign banks, investments, vehicles and vessels wherever located, and business interests.
- Insurance, if the proceeds are payable to the estate.
- RRSPs, RRIFs and TFSAs where the estate is the beneficiary.
- Real estate outside Ontario is left out.
Assets are valued at their fair market value at the time of death. Real property is valued at its appraised value at the date of death, even if it sells for more or less shortly after.
| Left out of the estate's value | Why |
|---|---|
| Insurance paid to a named beneficiary | The deceased no longer owned it at death. |
| Jointly owned assets that pass automatically to the surviving owner(s) | They pass to the surviving owner(s) rather than through the estate. |
| RRSPs, RRIFs, TFSAs and RPPs with a beneficiary designation or declaration | A beneficiary designation or declaration is in place. |
| Real estate outside Ontario, CPP death benefits, and certain RDSPs | These are listed as other exclusions. |
A tenant in common is different from a joint owner. When a tenant in common dies, their share does not pass automatically to the other owners. It becomes part of their estate, so it counts toward the estate's value if probate is sought.
Only encumbrances on real property can be deducted. Funeral expenses, lawyer's fees, credit card debt and loans do not reduce the value.
Filing, valuation and corrections
The estate representative must file an Estate Information Return with the Ministry of Finance within 180 calendar days after the certificate is issued. Even when the estate is worth $50,000 or less and no tax is owed, the return must still be filed. No return is required for succeeding estate trustee certificates or litigation certificates.
Filing online is recommended, and the return can also be filed by mail, courier, fax or in person. The records supporting the return must be kept for four years.
Estate representatives must be able to back up asset values with supporting documents, such as statements or an appraiser's opinion of value.
If information in a filed return turns out to be incorrect or incomplete within four years of the certificate being issued, an amended return must be filed within 60 days of becoming aware of it. If an estimated value was used on the application, an amended return is instead due within 60 calendar days after the actual value is given to the court under the undertaking. Additional tax found to be owing can be paid to the Superior Court of Justice or the Ministry of Finance, with an affidavit setting out the revised value of the estate at the time of death.
An estate representative who fails to file the return, or who makes false or misleading statements, may face a fine, imprisonment, or both. Which certificate applies, and how assets in several places are treated, depends on the facts and is worth confirming with a lawyer.
What to do next
- List every asset and where it is located.
- Note which assets pass to a named beneficiary or to a surviving joint owner.
- Obtain date-of-death appraisals for Ontario real estate.
- Collect mortgage or lien records registered against that property.
- Keep statements and valuation documents together to support the figures.
- Ask a lawyer which certificate applies and what documents Ontario requires.
If a filing deadline falls on a weekend or holiday, it moves to the next business day. A lawyer or accountant can help you plan the timing once the certificate is issued.
Frequently asked questions
Is out-of-province real estate taxed in Ontario?
Real estate outside Ontario is left out of the estate's value. Ontario real estate is included, valued at its appraised value on the date of death, less encumbrances such as mortgages.
Are foreign bank accounts counted?
Bank accounts, including those at foreign banks, are listed among assets included in the estate's value. For resealing, ancillary and foreign nominee certificates, only assets located in Ontario are used.
Do I need to file a return?
The estate representative must file an Estate Information Return within 180 calendar days after the certificate is issued. This applies even if no tax is owed. No return is required for succeeding estate trustee or litigation certificates.
Who pays the tax?
The estate pays it, not the representative personally. It is paid as a deposit when the application is filed and becomes the tax once the certificate is issued.
Sources
- Ontario.ca – Estate Administration Tax — ontario.ca
- Ontario.ca – Administering estates — ontario.ca
- Ontario.ca – Co-ownership arrangements — ontario.ca
- Ontario.ca – Apply for probate of an estate — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a wills & estates question
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