We’ll find the Inventory section in the left hand menu. This is where the user will be able to enter the deceased’s assets and liabilities.
To add a new item, click "Add New". This will prompt the user to confirm if it is an asset or liability, and then the category of asset or liability in question.
There are a number of categories available. If the user cannot locate it within the dropdown, select Other Asset.
Date of Death Value: If you enter a value here, the system will automatically assume that the current value is the same. If required, the user can modify the current value. This allows the system to track an asset that's value has changed.
Note: If you are logging the deceased’s inventory at the date of death, be sure to always have a date of death value. If the date of death value is $0, this asset will not appear on the deceased’s inventory, or in any calculations for the estate administration tax
The user will be required to enter the ownership type.
Item Passes: This is to identify if the item passes through the estate or outside of it (Example: A life insurance policy with a named beneficiary)
Bequest: This is when an item has been left as a gift to one or multiple beneficiaries.
Exclude from EAT: The flag is used to exclude the item from the estate administration tax.
Note: Any item marked as passing outside the estate will always be excluded from the tax calculation.
Various other field will be promoted to be completed based on category of item being added.
Note: Most of the additional fields are marked as optional and will allow the user to save the entry. These can be modified at anytime, and filling them out completely will allow users to fill out the estate information return completely
- Liquidating an asset will enable the user to sell it, and move that amount into the estate bank account. Note: Make sure to add an estate bank account to the Inventory first
- Distributing an asset will log a distribution to a beneficiary
- Bank accounts: The user will have the option to “Manage’. This will convert the deceased bank account into an estate bank account, so that you can log estate transactions to it
Item Modification: Items edited using the three-dot menu on the right of the item.
Note: Once an item has been sold or distributed, it can no longer be edited. The transaction would have to be deleted prior to modification.
Liabilities: If there is a mortgage on a property in Ontario, be sure to add the real estate first as an asset. Once this is completed, add the mortgage as a liability.
Select "Loans Payable". enter in the information about the mortgage. Indicate that the loan is secured by an asset. The system will provide the list of assets available and the user can then link it to the real estate.
Note: If the real estate is in Ontario, the application will automatically deduct the value of the mortgage from the tax calculation.
Pinned Banner: The banner displays the pinned estate values at the top of the inventory screen. They are dynamically updated as inventory items are entered. The date of death value is the net value of the estate, and is net of all liabilities, whether secured or not. The taxable estate value is the value of the estate for estate administration tax purposes. The only liability that can be deducted is the mortgage. The tax payable is calculated based on this amount The current inventory value represents the net value of all assets and liabilities still in the inventory.