|
Reference Articles > Estate Probate Fees
 Printer
Friendly
This
article describes the background and calculation of
“probate fees” now know in Ontario as the Estate
Administration Tax.
A few decades ago, Ontario abolished succession
duties. The federal government has also eliminated
estate taxes. Currently, the only taxes currently
eligible on death are income taxes, capital gain
taxes1 and Court fees.
In Ontario, court fees are payable upon the
application for a Certificate of Appointment of
Estate Trustees (formerly Letters Probate) based
upon the value of the estate being probated.
Court fees are $5.00 per $1,000.00 for the first
$50,000.00 and $15.00 per $1,000.00 thereafter. This
translates into a 1.5% effective tax rate. For
example, on an estate valued at $250,000 for probate
purposes the Court fee is $3,250.00.
The probate tax or fee varies from province to
province. The following table (as of April 1, 2005)
sets it out.
|
Province |
Rate |
Fee on Assets of
$250,000.00 |
|
Ontario |
$5 per $1,000 for first $50,000
$15 per $1,000 thereafter
No maximum |
$3,250
|
|
Alberta |
$25 for estates up to $10,000
$100 for estates between $10,001 and $25,000
$200 for estates between $25,001 and
$125,000
$300 for estates between $125,001 and
$250,000
$400 for estates over $250,000 |
$400 |
|
British Columbia |
No fee up to $10,000
$208 for estates between $10,000 and $25,000
$208 + $6 per $1,000 for estates between
$25,001 & $50,000
$14 per $1,000 thereafter
No maximum |
$3,360 |
|
Manitoba |
$50 for first $10,000
$6 per $1,000 thereafter
No maximum |
$1,490 |
|
New Brunswick |
$25 for estates up to $5,000
$50 for estates between $5,001 and $10,000
$75 for estates between $10,001 and $15,000
$100 for estates between $15,001 and $20,000
$5 per $1,000 for estates over $20,000 |
$1,250 |
|
Newfoundland |
$85 minimum for estates $1,000 or less plus
$50 for the Order = $135
Value of the estate x 0.005 and add $130
(includes Order) |
$1,350 |
|
Northwest
Territories |
$25 for estates up to $10,000
$100 for estates between $10,001 and $25,000
$200 for estates between $25,001 and
$125,000
$300 for estates between $125,001 and
$250,000
$400 for estates over $250,000 |
$400 |
|
Nova Scotia |
$70 for estates up to $10,000
$176 for estates between $10,001 and $25,000
$293 for estates between $25,001 and $50,000
$820 for estates between $50,001 and
$100,000
$820 plus $13.85 per $1,000 for estates over
$100,000 |
$4,282.50 |
|
Nunavut |
$8 for estate up to $500
$15 for estates between $501 and $1,000
$15 plus $3 per $1,000 for estates over
$1,000
|
$765 |
|
Prince Edward Island |
$50 for estates up to $10,000
$100 for estates between $10,001 and $25,000
$200 for estates between $25,001 and $50,000
$400 for estates between $50,001 and
$100,000
$400 plus $4 per $1,000 for estates over
$100,000
Plus $15 Royal Gazette Fee (applies to all
estates) |
$1,415 |
|
Quebec
(Montreal) |
Value of the estate is not relevant.
Flat fee depends on whether the applicant is
an individual or institution
|
$91 or $102 |
|
Yukon |
$0 for estates up to $25,000
$140 for estates over $25,001 |
$140 |
Not all assets need to be probated. Planning which
of your assets will actually be part of your estate
upon your death can be important.
Creative estate planning,
utilizing vehicles such as trusts, gifts during your
lifetime, joint ownership of assets, corporate
reorganizations, a second will or the use of alter
ego or joint partner trusts in appropriate
circumstances, may significantly reduce court fees
payable by your estate.
Having said that it is important to remember the
“tax tail should not to wag the dog” and planning
just to avoid court fees should be avoided without
thoroughly review.
1 When you
die, Canada Revenue Agency treats it as if you had
disposed of all your assets at their fair market
value. This is called the deemed disposition of your
assets and may trigger a capital gain. Your
principal residence is usually free of any capital
gains tax. A second family home, the cottage, ski
cabin or the condominium in Florida, though, may
trigger capital gains, if the property has
appreciated in value (again, unless left outright or
in trust for your spouse). Further, if your assets
are left outright to your spouse or exclusively in
trust for your spouse, the "rollover" concept
applies. This results in a deferral of the
recognition of capital gains until your spouse
either disposes of the assets or dies, at which time
the capital gains, if any, will be triggered.
For more
information on estate, trust, powers of attorney or
guardianship topics please see accompanying
articles. Remember these articles are provided for
information only and are not meant to be legal
advice. Please consult with a professional.
M. Jasmine Sweatman practices
at the law firm Sweatman Law Firm and can be
contacted directly by telephone at (905)337-3307 or
by email at
jasmine@sweatmanlaw.com.
|
