Estate Administration Tax - A New Chapter Begins

Earlier this year, the Ontario government announced major changes to the Estate Administration Tax (also known colloquially as "probate fees") in its annual budget. These amendments are a direct result of Ontarians implementing numerous planning techniques to minimize their probate fees payable on death.

After you die, your will may need to be probated. This involves presenting your will and a list of your assets to the Courts for certification that the will is valid and can be relied upon by third parties. At the time of probating the will, an estate administration tax of 0.5 percent must be paid on the first $50,000 of estate assets and 1.5 percent on the value of the remaining assets. Prior to the 2011 Ontario Budget, the Minister of Revenue had very little ability to determine if the appropriate amount of tax (fees) had been paid.