Best FHSAs in Canada: Where to get the new first home savings account + MORE Dec 16th

When it comes to estate planning, and settling an estate in Ontario, one unavoidable consideration is the Estate Administration Tax, often referred to as “probate fees.” This charge can be quite a significant financial burden for the estate, leaving Ontario executors in shock over the costs, and less inheritance leftover for the beneficiaries of the estate. The good news is there are ways to minimize this fee. Understanding what the Estate Administration Tax is and how it’s calculated can help you if you are preparing your estate, or as an executor to help streamline the process.

What is Estate Administration Tax in Ontario?

Estate Administration Tax, commonly known as probate fees, is a mandatory tax imposed by the Ontario provincial government. It is placed on the estate of a deceased individual and is calculated based on the fair market value of the deceased’s estate, including all assets, property and investments on the date of death. It’s important to note that Estate Administration Tax is only triggered and payable when the estate goes through the probate process, which is a legal procedure that happens in two circumstances…

MoneySense editors’ take
Consider opening an FHSA before Dec. 31, 2023, even if you don’t intend to contribute right away. Unused contribution room can be carried forward one year, up to a maximum of $8,000. You can give yourself a maximum contribution limit of $16,000 in 2024 by opening the account before the end of 2023.

Canadians can now boost their savings for a down payment on a home with a new type of registered account—the first home savings account (FHSA). The account, also referred to as the tax-free first home savings account, creates up to $40,000 in tax-free savings room for first-time home buyers. FHSAs were announced in the federal government’s 2022 budget plan as an initiative to help Canadians reach their goals of homeownership in competitive and challenging real estate markets. To date, more than 300,000 Canadians have opened an FHSA. In this article, we’ll answer common questions about the account and help you find the best one for your needs.

Have you opened a first-home savings account (FHSA) in 2023? — MoneySense (@MoneySense) December 15, 2023

Frequently asked questions about FHSAs

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