- If a filed return turns out to be incorrect or incomplete, an amended return is due within 60 days of becoming aware of it.
- Different triggers have different starting points, including estimated values and newly discovered property.
- Additional tax found to be owing is paid with an affidavit setting out the revised value of the estate at the time of death.
After the return is filed, trustees sometimes find an account no one knew about, or realize that a property value was wrong. The question then is whether the return can be corrected, and how quickly.
Ontario's rules do provide for amended returns, with set deadlines. This article walks through when an amendment is needed, what usually goes with it, and what to do if more tax turns out to be owing.
When an amended return is required
If information in a filed return turns out to be incorrect or incomplete, an amended return must be filed within 60 days of becoming aware of it. This duty applies within four years of the certificate being issued.
Two situations have their own timing, set out in the table below.
| Situation | Amended return due |
|---|---|
| Information in the filed return was incorrect or incomplete | Within 60 days of becoming aware of it, within four years of the certificate |
| An estimated value was used on the application | Within 60 calendar days after the actual value is given to the court under the undertaking |
| Assets discovered after the certificate was issued | Within 60 days after the statement of that property is delivered to the court |
No return is required in the first place for succeeding estate trustee certificates or for litigation certificates, so there is nothing to amend in those cases.
Common reasons a return needs correcting
- An asset was left out, such as a bank account, investment or business interest.
- An asset was valued at something other than its fair market value at the time of death.
- Real property was valued differently from its appraised value at the date of death.
- A mortgage or lien was deducted that was not registered against real property, since only encumbrances on real property can be deducted.
- A jointly owned or beneficiary-designated asset was counted or omitted incorrectly.
Several of these turn on whether the asset really belonged to the estate. Assets the deceased no longer owned at death, such as insurance paid to a named beneficiary, are left out of the estate's value. Registered plans such as RRSPs, RRIFs and TFSAs with a beneficiary designation are left out, but those naming the estate as beneficiary are included. A tenant in common's share becomes part of the estate, unlike a joint tenant's share, which passes to the surviving co-owners.
If more tax is owing
An increase in the estate's value can mean more tax. Above $50,000, the tax is $15 for every $1,000 (or part thereof) of the estate's value over $50,000, for certificates applied for on or after January 1, 2020. The value is rounded up to the nearest thousand dollars.
Additional tax found to be owing can be paid to the Superior Court of Justice or the Ministry of Finance, and the payment must come with an affidavit setting out the revised value of the estate at the time of death. The tax is paid by the estate, not personally by the representative.
What if the correction lowers the value?
Sometimes a correction shows that too much tax was paid. Refunds of tax already paid are requested from the Ministry of Finance, not at a courthouse. A tax refund requires an Estate Information Return filed within four years of the certificate, and the request must be made within 12 years of issuance or two years of a Notice of Assessment.
What to do next
Act as soon as you become aware of the problem, since the 60-day period runs from that point. Filing online is recommended, though the return can also be filed by mail, courier, fax or in person.
- Write down the date you learned of the error or the missing asset.
- Collect statements, appraisals or an appraiser's opinion of value to support the corrected figure.
- Work out the revised value of the estate at the date of death.
- Prepare the amended return and, if tax is owing, the affidavit and payment.
- Keep the supporting records for four years.
If you are unsure which deadline applies, or whether an item belongs in the estate at all, a lawyer or accountant can confirm before you file.
Frequently asked questions
How long do I have to file an amended return?
Generally within 60 days of becoming aware that the filed information is incorrect or incomplete, and this duty applies within four years of the certificate being issued. Estimated values and newly discovered assets have their own 60-day triggers.
What if I found a new asset after probate was granted?
An amended return listing the newly discovered property is due within 60 days after the statement of that property is delivered to the court.
How do I pay extra tax found to be owing?
It can be paid to the Superior Court of Justice or the Ministry of Finance, together with an affidavit setting out the revised value of the estate at the time of death.
Are there penalties for an incorrect return?
An estate representative who makes false or misleading statements may be fined at least $1,000 and up to twice the tax payable by the estate, imprisoned for up to two years, or both. Correcting an honest mistake promptly is part of meeting the amendment duty.
Sources
- Ontario.ca – Estate Administration Tax — ontario.ca
- Ontario.ca – Co-ownership arrangements — 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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