Tag: estate taxes

02 Apr

Update Regarding CRA Filing Deadlines and COVID-19

Noah Weisberg Uncategorized Tags: , , , , , , , , 0 Comments

Last week, Paul Trudelle blogged about CRA’s announcement regarding filing deadlines in light of the COVID-19 crisis.  Since then, a further announcement has been made. 

As it relates to the administration of an estate:

  • the Estate’s T3 tax return is now due on June 1, 2020 instead of April 14, 2020.  Tax payments owed by a trust remain deferred until September 1, 2020
  • the filing of an individual’s tax return remains uncertain as mentioned in Paul’s blog

Information is changing daily.  If the above applies to you, or an estate that you are responsible for, you should contact a professional accountant and/or monitor the CRA website.

Stay safe and wash your hands,

Noah Weisberg

Please click on this link to see our COVID-19 related resources.

13 May

Estate Taxes and the 2019 Budget

Natalia R. Angelini General Interest, News & Events, Trustees Tags: , , 0 Comments

An estate trustee has several responsibilities, including paying tax liabilities arising from the deceased’s death.  There are multiple deadlines to remember, including:

  • Prior Year’s T1 Return – If the death is between January and April, the return for the prior year must be filed within six months after the date of death.
  • Terminal T1 Return – If the death is between January and October, the return for the year of death is due April 30th of the next year. If the death is in November or December, the return must be filed within six months.
  • T3 Tax Return – If there is income received by the estate after the date of death, the T3 tax return must be filed within 90 days after the end of the calendar year or the estate year (365 days post-death), whichever period the estate trustee elects.

In addition to the above income tax-related deadlines, should the executor apply for a Certificate of Appointment (probate), Estate Administration Tax (“EAT”) will be owed upon filing the application. EAT is calculated on the value of the assets of an estate:

  • $5 per $1,000.00, or part thereof, is owed on the first $50,000.00; and
  • $15 per $1,000.00, or part thereof, is owed on the value of the estate over $50,000.00.

Once probate is granted, an Estate Information Return (“EIR”) must be filed with the Ministry of Finance.  An EIR requires the executor to provide an inventory and particulars of each type of asset of the estate, including fair market values at the date of death. The deadline to file the initial EIR is within 90 days after probate is granted. If the executor discovers incorrect or incomplete information, an amended EIR must be filed within 30 days of the discovery.

The 2019 Budget of Ford’s Ontario government proposes certain changes that would impact both the EAT and EIR.

EAT – The 2019 Budget proposes to eliminate the payment of EAT on the first $50,000.00 of the estate value. This change would spare modest estates from having to pay EAT, which may be particularly impactful in circumstances with limited available monies. It will also result in a savings of $250.00 for larger estates, as no EAT will be payable on the first $50,000.00.

EIR – The 2019 Budget proposes to extend the EIR initial filing deadline from 90 days to 180 days, and the amended filing deadline from 30 days to 60 days. The change to the initial filing deadline may be especially helpful for executors, as it can be a challenge to obtain particulars and date of death valuations of all estate assets within just three months of death.

Thanks for reading and have a great day,

Natalia Angelini

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