Calculating Estate Administration Tax
The Estate Administration Tax is calculated on the total value of the deceased's estate wherever situated, that is sworn/affirmed to on the Application for Certificate of Appointment of Estate Trustee under "Value of Assets of Estate". The formula for calculating the amount of tax owing is set out in the Estate Administration Tax Act, 1998, as follows:
- $5 for each $1000, or part thereof, of the first $50,000 of the value of the estate, and
- $15 for each $1000, or part thereof, of the value of the estate exceeding the $50,000.
For example an estate worth $126,000 would be calculated as follows:
5 x 50 = $250
Plus
15 x 76 (126 less 50) = $1140
Equals $1390 payable to the Minister of Finance.