PROBATE TAX – WHAT IS IT AND HOW MUCH DOES IT COST?
What is Probate tax? It is a provincial tax imposed on the deceased’s estate under the control of an executor or administrator.
How much will the probate tax be on an estate? Here is a simple approach to calculating the tax.
1. If the value of the estate assets is less than $1000 no probate tax needs to be paid.
2. If the value of the estate assets is between $1000 and $50,000 the rate of tax is 0.5%
EXAMPLE – If the estate has assets of $10,000 the probate tax owing will be $50
3. If the value of the estate assets is greater than $50,000 then the estate must pay $250 PLUS 1.5% for $1000 or part thereof of the estate assets that are greater than $50,000
EXAMPLE – If the estate has assets of $100,000 the probate tax owing will be $1000. $250 (for the first $50,000) PLUS 1.5% for the remaining $50,000 ($750) … $250 + $750 = $1000
Here is a useful calculator to help you figure out how much probate tax is owing on an estate – Probate Tax Calculator
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Feel free to contact us at any point for assistance or advice with respect to Estate Law, Estate Planning, Estate Administration or Estate Litigation. We may be reached at 705-435-4339 / 1-877-85LEGAL (1-877-855-3425) or contact us via email.
