Estate Information Return in Ontario: Who Files and When

You have been appointed estate trustee and the court has issued the certificate. It is easy to think the paperwork is finished, but the province expects one more document from you: the Estate Information Return. It has its own deadline and its own consequences if it is late or wrong.

This article explains who files the return, how long you have, what has to be reported, when it must be corrected and what can happen if it is not done properly. Every estate is different, so a lawyer or accountant can confirm how the rules apply to yours.

Who files and what the deadline is

The return must be filed with the Ministry of Finance within 180 calendar days of the estate certificate being issued.

The return is required even if the estate is worth $0. A low value does not mean you can skip it.

Some succeeding estate trustee certificates and litigation certificates do not require a return. If you hold one of those, confirm that with the ministry or a lawyer rather than assuming. The return can be filed online, by mail, by courier, in person or by fax.

Estate Administration Tax applies only if probate is applied for and issued. If you never needed a certificate, there is generally no return to file, but whether a certificate is needed depends on the assets and on what the institutions holding them require.

What you have to report

The return lists the value of the deceased's assets at the time of death. The assets counted include Ontario real estate less encumbrances such as mortgages, bank accounts including foreign accounts, investments, vehicles and vessels wherever located, property held in another person's name, business interests, and insurance payable to the estate.

Other assets are generally excluded from the value used for the tax. The table below summarizes the main groups.

Deductions are narrow. Funeral expenses, legal fees, loans, credit card debt, lines of credit and real estate commissions cannot be deducted, although mortgages on real property can be.

How much tax the value produces

For certificate applications made on or after January 1, 2020, estates valued at $50,000 or less pay no tax. Estates over $50,000 pay tax at $15 per $1,000 (or part thereof). Exactly how that works out for your estate is worth confirming with the ministry or a lawyer.

The tax is payable when the application is filed. If the value you gave the court was an estimate, the return and any correction need to reflect the actual number.

When you must amend the return

An amended return is due within 60 days in three situations:

• After the actual value is given to the court, where an estimate was used.
• After you become aware of incorrect or incomplete information, if this is within four years of the certificate.
• After a statement of newly discovered assets is delivered to the court.

In practice, this means a forgotten bank account or a revised property value is not something to leave for later. Note the date you learn of the issue, because the 60 days run from the events described above.

Penalties and reassessment

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

The Ministry can assess or reassess within four years after the tax was due. It can do so at any time if the trustee failed to file on time or misrepresented information. If you disagree with an assessment, a Notice of Objection must be filed within 180 days of the Notice of Assessment.

Keep your supporting records for four years. Those records are your proof of how you arrived at each value.

What to do next

• Write down the date the certificate was issued and count 180 calendar days forward.
• List every asset the deceased owned at the date of death, including foreign accounts and property held in another person's name.
• Separate assets that pass by named beneficiary or survivorship, since these are generally excluded.
• Gather mortgage statements for any real property, since mortgages can be deducted.
• Keep all supporting records for four years.
• If you used an estimate, diarize the 60-day amendment deadline once the actual value is known.
• Ask a lawyer or accountant to review the figures if the estate includes business interests, foreign assets or anything hard to value.

Frequently asked questions