Changes Ahead for the Estate Administration Tax Act
|Area||Personal Tax & Estates|
On May 12, 2011, Ontario Bill 173, Better Tomorrow for Ontario Act (Budget Measures), 2011 received Royal Assent, making a number of notable changes to the 1998 Estate Administration Tax Act.
Estate administration tax (often referred to as probate fees) is determined simply as a percentage of an estate’s value. It must be paid when a personal representative (i.e. an executor) files an application with the Court for a certificate of appointment of estate trustee and whether or not there is a will. Under the EATA, the amount of tax payable upon the issuance of an estate certificate for which an application is made is $5 for each $1,000 of the first $50,000 of the value of the estate and $15 for each $1,000 of the value of the estate that exceeds $50,000.