- Estate Administration Tax excludes assets under joint ownership that automatically become assets of the other owners.
- For estate certificates applied for on or after January 1, 2020, the tax is $15 for every $1,000 of estate value over $50,000.
- The tax is due when the estate certificate is issued, and an Estate Information Return is due within 180 calendar days.
- Property that does not pass by survivorship is a different matter and may be part of the estate.
If you are an estate trustee, one of your first questions is likely how much the estate will owe to get its certificate. People often wonder whether the family home or joint bank account owned with the deceased adds to that bill.
This article explains, in general terms, how Ontario's Estate Administration Tax treats jointly held assets, how the tax is calculated, and what filing duties follow. Whether a particular asset really passes by survivorship can be a question of fact, so get advice if it is unclear.
Why joint ownership matters
The assets in an Ontario estate are distributed depending on how they are owned. The Province lists money and property jointly owned with another person, and designated-beneficiary assets such as a joint bank account, as examples of how ownership affects distribution.
When you own property as a joint tenant, it automatically passes to the surviving owner when you die. Because that property does not go through the estate, it is treated differently for tax purposes.
What is left out of the estate's value
Ontario says Estate Administration Tax excludes from the estate's value assets where there is joint ownership that automatically become assets of the other owners, along with insurance and registered plans with a beneficiary designation, and real estate outside Ontario.
| Asset | Counts toward the tax? |
|---|---|
| Jointly owned asset that automatically passes to the other owner | Excluded |
| Insurance with a beneficiary designation | Excluded |
| RRSP, RRIF, TFSA or RPP with a beneficiary designation | Excluded |
| Real estate outside Ontario | Excluded |
| Property that does not pass by survivorship | Goes to the personal representative, so ask a lawyer how it is valued |
Rate, deadlines and filing
For estate certificates applied for on or after January 1, 2020, the tax is $15 for every $1,000 (or part thereof) of estate value over $50,000. Estates of $50,000 or less pay no tax but must still file the return.
The tax is due the day the estate certificate is issued. An Estate Information Return must be filed within 180 calendar days after issue, even if the estate is worth $0.
Ontario says estates valued up to $150,000 can apply for a Small Estate Certificate, and estates above $150,000 apply for a Certificate of Appointment of Estate Trustee.
When an asset may not really pass by survivorship
Survivorship applies only to interests held in a joint tenancy. Property that does not pass by survivorship goes to the deceased's personal representative. On a tenant in common's death, the interest passes to the deceased's estate rather than the co-owners. A joint tenancy may also have been severed before death, for example by selling or encumbering one's share, by agreement, or by a course of dealing.
Jointly held assets can sometimes be disputed, for example where it is unclear whether the person who put an asset into joint names meant it as a gift. Whether such an asset passes to the other owner or belongs to the estate depends on the facts. Get legal advice before treating it as outside the estate.
What to do next
Before you file, build an honest list of the deceased's assets and how each was owned. Ontario notes that probate is normally required if the deceased owned real property or assets held by a financial institution, and that real property not passing by right of survivorship is a reason to apply.
- List every asset and note whether it was solely owned, jointly owned or had a named beneficiary
- Check title to real estate to confirm joint tenants versus tenants in common
- Collect beneficiary designations for insurance and registered plans
- Note any assets outside Ontario
- Flag any joint account where the intention behind the joint name is unclear
- Diarize the due date for the Estate Information Return
Frequently asked questions
Do jointly owned assets count toward Estate Administration Tax?
Ontario's Estate Administration Tax excludes from the estate's value assets under joint ownership that automatically become assets of the other owners. Assets that do not pass that way may be part of the estate.
What is the rate of Estate Administration Tax?
For estate certificates applied for on or after January 1, 2020, it is $15 for every $1,000 (or part thereof) of estate value over $50,000.
Do I still file a return if the estate owes nothing?
Yes. Estates of $50,000 or less pay no tax but must still file the return, and the Estate Information Return is due within 180 calendar days after the certificate is issued, even if the estate is worth $0.
Is probate always needed?
No. Ontario says it is not always required, but it is normally required if the deceased owned real property or assets held by a financial institution.
Sources
- Ontario.ca – Estate planning and wills — ontario.ca
- Ontario.ca – Administering estates — ontario.ca
- Court of Appeal for Ontario – Hansen Estate v. Hansen, 2012 ONCA 112 — ontariocourts.ca
- Court of Appeal for Ontario – McTavish v. Reed, 2021 ONCA 885 — ontariocourts.ca
- Court of Appeal for Ontario – Jansen v. Niels Estate, 2017 ONCA 312 — ontariocourts.ca
- Ontario.ca – Estate Administration Tax — 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.
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