A partner at Toronto law firm Aird & Berlis, Stuart Bollefer is a tax lawyer with more than 30 years of experience. Estate planning is one of Stuart Bollefer’s specialties.
Canada does not have inheritance taxes, so the beneficiaries of an estate do not have to pay taxes on the money they inherit. However, the estate itself may have to pay taxes.
In Ontario, an estate must pay several taxes when applicable, including an estate administration tax, also known as probate tax; income taxes for the year the decedent died; and income taxes for any related trusts. The estate administration tax, which is the only estate tax in Ontario, is around 1.5 percent of the estate value.
The other two taxes - personal income tax and income tax on trusts - are similar to normal income taxes. For more information on Canadian estate law, visit www.attorneygeneral.jus.gov.on.ca.
Canada does not have inheritance taxes, so the beneficiaries of an estate do not have to pay taxes on the money they inherit. However, the estate itself may have to pay taxes.
In Ontario, an estate must pay several taxes when applicable, including an estate administration tax, also known as probate tax; income taxes for the year the decedent died; and income taxes for any related trusts. The estate administration tax, which is the only estate tax in Ontario, is around 1.5 percent of the estate value.
The other two taxes - personal income tax and income tax on trusts - are similar to normal income taxes. For more information on Canadian estate law, visit www.attorneygeneral.jus.gov.on.ca.
