December 17, 2018

Probate Tax – How much does it cost?

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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 or contact us via email.