- Real estate located outside Ontario is excluded from the estate value for estate administration tax on a full estate certificate.
- Foreign bank accounts, and vehicles or vessels wherever located, are still counted.
- The value is measured in Canadian dollars at the date of death.
- Whether the foreign property needs its own court process depends on the other jurisdiction's rules, so local advice is needed.
If the person who died owned a condo in Florida, a villa in Europe or a family home in another country, you may be wondering whether Ontario will tax it when you apply for probate. The question matters because estate administration tax is calculated on the value of the estate, and foreign real estate can be worth a great deal.
The answer is not all or nothing. Some foreign assets are excluded and others are counted, and the difference often surprises executors.
The basic rule for foreign real estate
Real estate located outside Ontario is excluded from the estate value used to calculate estate administration tax on a full estate certificate. So a Florida condo or a home abroad does not add to the tax base for the Ontario application.
That does not mean the property needs no attention. How foreign property is transferred or sold depends on the rules where it is located, and it may involve its own court or registry process. The Ontario rules cannot answer that, so you will want advice from a lawyer in that jurisdiction.
What is counted even if it is outside Ontario
Not everything foreign is excluded. Foreign bank accounts are counted, and so are vehicles and vessels wherever they are located. The estate value also includes investments, insurance proceeds payable to the estate, and property held in another person's name.
| Asset | Counted for Ontario tax? |
|---|---|
| Real estate in Florida or another country | Excluded on a full estate certificate |
| Bank account at a foreign bank | Counted |
| Car or boat kept abroad | Counted, wherever located |
| Ontario home or cottage | Counted, less registered encumbrances such as a mortgage |
| Jointly held asset passing to the surviving owner | Excluded |
| Insurance or registered plan with a named beneficiary | Excluded |
Working out the Ontario estate value
The tax is based on the estate's value in Canadian dollars at the date of death. If foreign accounts are held in another currency, they need to be converted for the application. Form 74A asks for the total value of real property, the total value of personal property and the total estate value.
Once you have the figure, estate administration tax is $15 per $1,000 (or part of $1,000), with the first $50,000 exempt. The value is rounded up to the nearest thousand dollars first. For example, a $500,000 Ontario-taxable estate owes $6,750.
Ontario's guidance does not require a formal appraisal, and it describes the value as at the date of death, with a sworn estimate permitted and a later sworn statement of the total value. Where an estimate is used, the applicant undertakes to file that sworn statement within six months and pay any balance owing.
Other points that catch executors out
- Deductions are limited. Funeral expenses, lawyer's fees, loans and interest, vehicle debt, credit card debt and real estate commissions cannot be deducted from the estate value.
- The Estate Information Return must be filed within 180 calendar days after the certificate is issued, even if the calculated value is $0.
- If the deceased lived outside Ontario, the application is filed where they owned Ontario property.
- A bond is required if the applicant does not live in Ontario, another Canadian province or territory, or a Commonwealth country. It is generally double the estate's value unless a judge orders otherwise.
If the executor lives abroad, the bond rule is worth checking early, because it can affect cost and timing.
What to do next
- Make a list of every asset by location: Ontario, elsewhere in Canada, and abroad.
- Separate foreign real estate from foreign bank accounts, vehicles and vessels, since they are treated differently.
- Obtain date-of-death values and convert amounts to Canadian dollars.
- Identify jointly held assets and beneficiary designations that may sit outside the estate.
- Contact a lawyer in the foreign jurisdiction about transferring the foreign property.
- Speak with an Ontario estates lawyer about the Ontario application and whether a bond is needed.
Frequently asked questions
Does a Florida condo add to Ontario probate fees?
Real estate outside Ontario is excluded from the estate value for estate administration tax on a full estate certificate. Florida may have its own requirements for transferring the condo, which an advisor there can explain.
Do foreign bank accounts count?
Yes. Foreign bank accounts are counted toward the estate value, as are vehicles and vessels wherever they are located.
What currency is used for the estate value?
The estate value is based on the value in Canadian dollars at the date of death.
Do I still file an Estate Information Return?
Yes. It must be filed within 180 calendar days after the certificate is issued, even if the calculated value of the estate is $0.
Sources
- Ontario.ca – Estate Administration Tax — ontario.ca
- Ontario.ca – Administering estates — ontario.ca
- Ontario.ca – Calculating the Estate Administration Tax — ontario.ca
- Ontario.ca – Apply for probate — 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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