How GICs and Term Deposits Are Valued for Estate Administration Tax in Ontario

Guaranteed Investment Certificates and term deposits feel simple compared to real estate or business shares, but they still trip up executors in a specific way: the value on the day someone dies is often not the same as the value showing on their last account statement. For Estate Administration Tax purposes, getting the exact date-of-death figure — principal plus interest earned to that point — matters more than it might seem.

This article walks through how GICs and term deposits are generally valued for Ontario estate purposes, what to watch for with locked-in terms, and the steps to get an accurate figure from the financial institution.

GICs and Term Deposits Are Estate Assets Like Any Other

A GIC or term deposit held solely in the deceased's name generally forms part of the estate and is counted toward the value used to calculate Estate Administration Tax, the same as a regular savings account. As of mid-2026 figures — verify the current amount before relying on it — there is no tax on the first $50,000 of estate value, and the tax is $15 per $1,000 (1.5%) above that, with the total rounded up to the nearest $1,000.

Valuing a GIC as of the Date of Death

The general rule for estate valuation is that assets are valued as of the date of death, not the date the executor gets around to closing the account. For a GIC, that means:

• Principal: the original amount deposited (or the current balance, if it is a cashable or redeemable product that has changed)
• Accrued interest: interest earned up to and including the date of death, even if it has not yet been paid out or credited to the account

The combined figure — principal plus accrued interest to that specific date — is generally the correct value to report, not the balance shown on a statement from a month or two earlier, and not the eventual maturity value if that date falls after death.

Locked-In vs. Cashable GICs During Estate Administration

Whether a GIC can be accessed before its maturity date affects timing, though it should not change the date-of-death valuation itself:

• Cashable or redeemable GICs can often be liquidated relatively easily once the institution recognizes the estate trustee's authority, though early redemption may sometimes reduce the interest earned compared to holding to maturity
• Non-redeemable (locked-in) GICs generally must be held until maturity, meaning the estate may simply need to wait for the term to end before those funds are released, even after probate has already been granted

Either way, the amount reported for Estate Administration Tax is fixed at the date-of-death value — what happens to the certificate afterward is an administration timing issue, not a valuation issue.

Registered vs. Non-Registered GICs

Where a GIC is held matters as much as the GIC itself:

• A GIC held in a non-registered account solely in the deceased's name is generally part of the probate estate
• A GIC held inside an RRSP, RRIF, or TFSA with a named beneficiary other than the estate generally passes directly to that beneficiary, outside the estate and outside the value used to calculate Estate Administration Tax
• A GIC held jointly with a right of survivorship generally passes directly to the surviving joint holder, outside the estate

The GIC itself does not determine the outcome — the registration and ownership structure around it does.

Getting an Accurate Date-of-Death Valuation From the Institution

1. Contact the financial institution's estates department (most banks and credit unions have a dedicated team for this) and provide the death certificate and your role as executor or proposed estate trustee.
2. Request a written date-of-death valuation statement, specifically showing principal and accrued interest calculated to that exact date, not just the most recent regular statement.
3. Ask whether the GIC is cashable or locked-in, and what the institution's process is for handling it during estate administration.
4. Keep the written valuation with your other estate records — this is exactly the kind of documentation that supports your Estate Information Return if the value is ever questioned.

Reporting the Value Correctly

The date-of-death figure the institution provides should be the number that goes on the Estate Information Return, which must be filed with the Ontario Ministry of Finance regardless of whether the calculated estate value ends up being zero. Rounding, estimating, or using an old statement balance instead of the institution's actual date-of-death figure is the kind of small shortcut that can create bigger problems if the return is ever reviewed.

Frequently asked questions