About Estate Administration Tax Act

Estate administration tax is a tax act established in Ontario, Canada, which became law in 1998. This law replaces the old probate charges prior to the law being enacted. The law defines the responsibilities of an estate representative as well as how to pay the tax.

Estate Representative

The estate representative is defined in the estate tax administration act as the person who is responsible for the deceased person's estate and their financial obligations. If the deceased person has a will, the estate representative would be named in the will. Typically this person is the same as the executor of the will or the administrator of the will. This person would be responsible for handling all of the deceased person's financial obligations including the estate administration tax based on the valuation of the estate.

Tax Payment

The payment of the estate administration tax is handled through the court system. The estate representative applies to receive an estate certification, which can be issued once the estate administration tax has been paid in full to the court. The estate representative will supply the court with an estimated valuation of the estate, which will be used to calculate the amount of the tax payment. Once this valuation has been verified, the court will issue an estate certificate. If there was an overpayment on the estate tax, a refund will be sent to the estate representative on behalf of the deceased person's estate.

Tax Deposit

The estate representative may pay the estimated estate administration tax at the time of the application. This allows the true value to be submitted within six months. The money paid for the tax acts as a deposit until the true valuation has been given.