Ontario Releases New Estate Information Return

The following is a summary provided by Standard Life who has been on top of critical changes impacting those who will be acting as executors.

Effective January 1, 2015, estate trustees (i.e., executors) in Ontario have additional duties, with Ontario’s release of its Estate Information Return. Part of the probate process, this new return must be filed within 90 calendar days after a certificate of appointment of estate trustee is issued. This return is not required where an application for probate was made prior to January 1, 2015.

On the Estate Information Return, the estate trustee will need to provide information on the Fair Market Value of the assets forming part of the estate for estate administration tax (i.e., probate fee) purposes.

In the FAQ, Ontario has confirmed that certain assets are excluded from the value of the estate for purposes of the tax. Excluded assets include “RRSPs, RRIFs, TFSAs and life insurance policies where there is a living named beneficiary”. (Please see the 8th point in the section entitled, “Value of estate assets” in the FAQ)

The return, as well as the Guide for completing it, can be accessed from the Ontario Ministry of Finance’s website.

The above changes will bring added risk to those who are will be acting as executors of an estate. If anyone is interested in learning about the roles and responsibilities of an executor I am planning on hosting workshops Please let me know if you would like to be on the invite list.