The Province of Ontario has introduced the EAT (Estate Administration Tax) law.
At a time when families are grieving the loss of a loved one, the executor of the estate (often a close family member) must within 90 days file an assessment of the value of all property owned by the person at the time of his/her death, and which isn’t inherited directly by a surviving spouse or passed along through joint ownership.
As soon as the valuation is complete, the executor must pay immediate taxes to the province– $5 for each $1,000 of the first $50,000 valuation and then $15 for the value of $1,000 of the estate over $50,000. If the executor doesn’t pay immediately, or is determined to have made false or misleading evaluations, the executor faces a fine of up to twice the tax payable by the estate, or imprisonment of up to two years.
Any wonder why politicians are often detested?
Roy’s guest is Tim Baragar, owner of the Baragar Funeral Home in Bancroft, Ontario.