Estate Information Return in Ontario: What to File in 180 Days

You have your Certificate of Appointment of Estate Trustee in hand, and someone has mentioned a return due within 180 days. It is easy to assume the work is over once the court issues the certificate. For tax purposes, a clock has just started.

This article explains what the Estate Information Return is, when it is due, how it can be filed, what happens if values change later, and the penalties for missing the deadline or getting it wrong. It is general information, and a lawyer or accountant can confirm how it applies to your estate.

What the Estate Information Return is

The Estate Information Return (EIR) is a filing with the Ontario Ministry of Finance that reports the value of the estate after the court has issued an estate certificate. It is separate from the probate application and separate from the tax deposit you paid when you applied. The deposit becomes the estate administration tax once the certificate is issued.

The return must be filed even if the estate value is $0 or no tax is payable. That surprises many trustees of small estates, because estates of $50,000 or less owe no estate administration tax but a return is still required.

The return is based on the estate's value for estate administration tax purposes. That value is not simply everything the person owned. Assets that pass outside the estate, such as jointly owned assets passing to the surviving owner or RRSPs and TFSAs with a named beneficiary, are excluded. Mortgages and liens can be deducted from real property, but funeral expenses, legal fees, credit card debt and lines of credit cannot be deducted.

The 180-day deadline

The EIR is due within 180 calendar days of the date the estate certificate is issued. If the last day falls on a weekend or holiday, the deadline moves to the next business day. Count from the issue date on the certificate, not from the date you applied or the date you picked it up.

An EIR is not required for succeeding trustee certificates or litigation certificates. Whether a particular certificate type in your situation needs a return is worth confirming with a lawyer or accountant before you assume either way.

How to file and what to keep

The return can be filed online, which Ontario describes as the fastest method. It can also be filed by mail to the Ministry of Finance, 33 King Street West, PO Box 625, Oshawa ON L1H 8H9, by courier, in person, or by fax at 1-866-888-3850.

Records supporting the return must be kept for four years at the estate representative's principal place of business or residence. In practice, that means keeping date-of-death statements, property valuations, mortgage statements and anything showing why an asset was included or left out.

• Date-of-death statements for bank and investment accounts
• Property valuations or appraisals and mortgage balances at death
• Beneficiary designations for RRSPs, RRIFs, TFSAs and pensions
• Proof of joint ownership for any asset that passed outside the estate
• A copy of the probate application showing the value declared

When the numbers change after you file

Sometimes you cannot know the final value by day 180. The rules allow for that. If values were estimated, you file the EIR within 180 days using the estimate, then file an amended return within 60 days of giving the actual value to the court.

If information in the return was incorrect or incomplete, you amend it within 60 days of becoming aware, and no later than four years after the certificate was issued. If you discover assets that were not reported, they are reported at date-of-death fair market value, with an amendment within 60 days after the statement is delivered to the court.

Changes to the value can also affect the tax itself. If the value declared to the court was too low, additional tax can be paid either to the court or to the Ministry of Finance.

Penalties and reassessment

Failing to file an EIR, or making false or misleading statements, carries a fine of at least $1,000 and up to twice the tax payable, imprisonment of up to two years, or both.

There is also a time-limit consequence. The Ministry of Finance can generally assess or reassess the tax within four years after it was due, which is the day the certificate was issued. If the EIR was not filed by the deadline, or there was a misrepresentation through neglect, carelessness, wilful default or fraud, it may assess at any time. A late return therefore keeps the estate exposed indefinitely.

If you disagree with an assessment, a Notice of Objection must be filed within 180 days of the date of the Notice of Assessment, online at ontario.ca/taxappeals.

What to do next

• Find the issue date on the certificate and write down the 180th calendar day, adjusting if it lands on a weekend or holiday
• Confirm whether your certificate type needs an EIR at all
• Gather valuations and statements so the figures match the value you gave the court
• Decide whether any values are estimates and, if so, diary the 60-day amendment step
• File online if you can, and keep proof that you filed
• Keep supporting records for four years
• Ask a lawyer or accountant if you are unsure about what counts toward the estate value

Trustees are acting for the estate, and the estate, not the trustee personally, pays the tax. The penalties for failing to file or for false or misleading statements are serious, so accuracy matters as much as timing.

Frequently asked questions