Estate Administration Tax

Why Estate Taxes Matter

While Canada doesn’t have an inheritance tax, estates may still be subject to certain fees and final tax obligations after someone passes away. One of the most common is the Estate Administration Tax (sometimes called probate fees), which is based on the total value of the deceased's assets.

Planning for these taxes is a key part of estate preparation. Knowing which assets are included, what exemptions exist, and how to reduce the overall tax burden can help your estate pass more efficiently to your beneficiaries.

Reducing the Burden

Estate taxes and fees don’t just affect the executor—they directly reduce the value of what’s passed on. With some advance planning, many Canadians are able to reduce the taxes their estate owes or structure their assets in ways that avoid certain fees altogether.

Being aware of how the rules apply, and what options exist for tax-efficient estate planning, helps ensure more of your estate goes where you intended.

Why It’s Worth Planning

Understanding estate taxes allows you to:

• Estimate the potential tax impact on your estate

• Plan ahead to minimize or offset applicable fees

• Make better decisions about asset ownership and transfers

• Prepare your executor for what will need to be paid

• Reduce unexpected costs for your beneficiaries

Even simple estates benefit from reviewing which taxes may apply and how to prepare for them.

Foundations of Estate Taxes

These articles explain the essentials of estate-related taxes and what steps can help reduce or avoid them:

• What Is the Estate Administration Tax: Learn how this tax is calculated, when it’s applied, and how it differs across provinces.
• Included and Excluded Assets: Understand which types of property and accounts are used to calculate the tax—and which ones are left out.
• When Taxes Apply or Are Exempt: Explore scenarios where an estate may not owe taxes, and how certain strategies or asset types can lower the tax burden.