Where an Ontario property has been converted to the Land Titles system from the Land Registry system, and is being dealt with for the first time since that conversion (i.e. its “first dealings”), the requirement to apply for probate to sell the property may be waived.
We will conduct a title search of your property to determine whether the property qualifies for a first dealings exemption from probate tax. If your property qualifies for first dealings, and you were to pass away while still owning your Home, your estate would not be responsible to pay the estate administration tax on the value of your home at the date of death.
The first dealings exemption becomes effective if you have two (2) Wills, one (1) to address your bank accounts and other property that would require administration, and a second to address your Home and other assets that do not require administration, for example, your personal property.
The estate administration tax is calculated and payable on those assets that require administration. The rate of estate administration tax is based on a rate of $15.00 for each $1,000.00 or portion thereof in excess of the first $50,000.00 of your estate assets, requiring administration.
By way of example, if your Home is valued between $800,000.00 and $1,000,000.00 at the time of your death, your estate would be required to pay estate administration tax in the amount of $12,000.00 to $15,000.00, if you only had one Will. If you have a second Will to address your Home’s first dealings exemption, your estate would not be liable to pay estate administration tax on the value of your Home at death.
Wondering whether your home qualifies for first dealings? Give us a call, and let’s start planning your legacy together.
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