The Government of Ontario charges what is known as the Estate Administration Tax, and known more commonly as probate tax, on the total value of a deceased individual’s estate. This includes assets that the deceased owned at the time of death. According to the Ministry of Finance of the Government of Ontario, the current tax rates are:
- $5 for each $1,000, or part thereof, of the first $50,000 of the value of the estate, and
- $15 for each $1,000, or part thereof, of the value of the estate exceeding $50,000.
Often, one of the most valuable assets a loved one can leave behind after they pass is real estate. The value used for the tax calculation is the value of the property minus any encumbrances such as mortgages secured lines of credit. The property may have been the family home, or it may have been an investment or commercial property. Generally, real estate that was owned jointly with the right of survivorship and real estate outside of Ontario is not included in the calculation of this tax.
The probate process can be complex and it can be time consuming. Contact Zeeshan S. Baig – Toronto Probate Lawyer, at (647) 771-0130 to book your probate consultation today. To prepare for your consultation, please complete this intake questionnaire.