Minimizing Taxes Payable on Death

We are frequently asked to assist with minimizing the various taxes which may be payable on death.

Although Ontario does not impose inheritance or estate taxes per se, death can result in the requirement to pay Estate Administration Tax of approximately 1.5% of the total value of the deceased’s assets.

Certificate of Appointment

Estate Administration Tax is only payable where an Application for a Certificate of Appointment is required.

It should be noted that obtaining a Certificate of Appointment is typically only required in one of two situations:

i. Where the Deceased owned real property either alone or as a Tenant in Common; or

ii. Where the Deceased held large financial assets with a bank or financial institution.

Estate Administration tax

Where a Certificate of Appointment is not required, Estate Administration Tax is not payable.

There are methods by which you can arrange your assets so as to minimize or cut out completely, the need to pay Estate Administration Tax. This process is assessed on a case-by-case basis and requires an in-depth look at your personal assets. As part of your Estate planning, we can advise as to how best to minimize Estate Administration Tax.