Probate law in Ontario changes, and individuals named as estate executors must stay abreast of the changes to ensure that estates are properly administered and to protect against liabilities.
One change that executors should be aware of relates to the estimation of the estate’s value. Starting Jan. 1, individuals who have received a Certificate of Appointment of Estate Trustee must provide a list of assets to show how the value of the estate was estimated. The old rules required only the estimate and not the new filing, which is called an Estate Information Return.
After receiving an estate certificate, the executor must file the Estate Information Return within 90 days. The return should be filed with the Ministry of Finance.
Some trustees are not required to file the return. Those individuals include anyone who has received the following certificates:
- Certificate of Appointment of Succeeding Estate Trustee without a Will
- Certificate of Appointment of Succeeding Estate Trustee with a Will
- Certificate of Appointment of Estate Trustee During Litigation
- Certificate of Appointment of Succeeding Estate Trustee with a Will Limited to the Assets Referred to in the Will
Executors who applied for estate certificates before Jan. 1 are also exempted from the information return requirement.
The new rule also requires the executor to amend the return within 30 days in the event that an error is discovered within four years of receipt of the estate certificate.
The Ministry of Finance has more on the rule change.
To learn more about how estates are taxed in Ontario, please see our previous post, “Things you should know about Ontario’s estate administration tax.”