Estate Information Return: The Executor's 180-Day Deadline in Ontario

Once you have been appointed as estate trustee and the court has issued the certificate, it is easy to feel the hardest part is over. In Ontario, though, there is one more filing that has a firm clock on it: the Estate Information Return. Many executors learn about it only after the certificate arrives.

This article explains what the return is, what goes into the estate value, when it is due, when you may need to correct it, and what can happen if it is missed. It is general information, not advice on your particular estate.

What the Estate Information Return is

The Estate Information Return is a filing made to the Ministry of Finance. It lists the value of the deceased person's assets at the date of death. It is separate from the court application for the certificate, and it is separate from the deceased's income tax returns.

The deadline applies to a Certificate of Appointment of Estate Trustee and also to a Small Estate Certificate, which is the court document used for estates valued at $150,000 or less. If your certificate was applied for a long time ago, the timing rules may differ, so it is worth confirming with a lawyer.

The 180-day deadline

The return must be filed within 180 calendar days of the certificate being issued. Calendar days means weekends and holidays count. Exactly which day counts as day one is worth confirming with a lawyer, so count carefully and leave yourself extra time.

The filing is required even if the estate's value is $0. An estate with few assets, or one where everything passed outside the estate, still has to file.

Estate administration tax is a different step. For certificates applied for on or after January 1, 2020, there is no tax on an estate of $50,000 or less, and above that the tax is $15 for each $1,000 (or part) of value over $50,000. That tax is paid when the application is filed, so by the time the return is due, the tax has normally already been dealt with.

What counts toward the estate value

The value reported is based on assets the deceased owned at death, valued as of the date of death. Whether a particular asset belongs in the return can depend on how it was held, so ask for advice on anything unclear.

Funeral costs, legal fees, loans and credit card debts cannot be deducted when working out the value. That surprises many executors, who assume debts reduce the figure. Keep your records, because they must be kept for four years.

Correcting the return: the amended return

Sometimes the first return is not final. An Amended Estate Information Return is required in these situations:

• Within 60 days of becoming aware that information in the return was incorrect or incomplete, and within four years of the certificate.
• Within 60 days of giving the court the actual value, if an estimate was used.
• Within 60 days after a statement of newly found assets is delivered to the court.

Separately, the executor must file a sworn statement of the value of property discovered later within six months of discovering it. The two obligations are different, so a later discovery may trigger both.

Penalties for missing or getting it wrong

Failing to file the return, or making false or misleading statements, can result in a fine of at least $1,000 and up to twice the tax payable, up to two years' imprisonment, or both. What happens in a specific case depends on the facts, so it is worth confirming with a lawyer.

If you are unsure whether an asset belongs in the return, it is better to ask before filing than to correct later.

What to do next

• Write down the date the certificate was issued and count 180 calendar days forward; put a reminder well before that date.
• List the deceased's assets at the date of death and note how each was held.
• Separate items with a named beneficiary or outside Ontario, and confirm with a lawyer or accountant whether they are excluded.
• Do not subtract funeral costs, legal fees, loans or credit card debts from the value.
• Keep all records supporting the values for at least four years.
• If you later find an error or a new asset, diarize the 60-day amended return period.
• Remember that tax filings for the deceased have their own deadlines, so ask your lawyer or accountant to map them all out.

Frequently asked questions