The Estate Administration Tax applies to the total assets owned by someone who has passed away, but only if there's a request for, and issuance of, a certificate of appointment of estate trustee.

This tax acts as a preliminary payment submitted alongside the application for an estate certificate to the Superior Court of Justice. After the certificate of estate trustee is granted, this preliminary payment is officially recognized as the Estate Administration Tax.

In situations where an estate certificate is not requested or granted, there's no requirement to pay the Estate Administration Tax. Moreover, if you apply for an estate certificate and it isn't issued, any payment you've made towards this tax will be returned to you.

How Is The Estate Administration Tax Calculated?

Payable to the Minister of Finance of Ontario - the estate administration tax is calculated as follows:

• No estate administration tax is required for estates valued at $50,000 or less, but an Estate Information Return must be submitted within 180 days after receiving the estate certificate.

• For estates valued above $50,000, the tax is calculated at $15 for each $1,000 (or part of $1,000) of the estate's value.

If the calculation is still unclear, here is our co-founder explaining Ontario’s estate administration tax schedule:

How Is The Estate Administration Tax Paid?

The estate administration tax is paid when the estate representative applies for an estate certificate with the Superior Court of Justice. Although the estate trustee is responsible for the payment of the probate fee, the money to pay for the tax will come from the estate.