Tim Baragar has been in the funeral business for a long time. He received his Funeral Director’s in 1982 and since 1996 he has operated Baragar Funeral Home in downtown Bancroft.
Baragar makes it clear that his service does not end at the cemetery. He and Funeral Director Jeff Neuman do their best to help families obtain pertinent documents and ensure that a loved one’s affairs are in order.
And that’s why Baragar and Neuman are sounding the alarm bells over a newly rolled-out tax that took effect on Jan. 1. The Estate Administration Tax (EAT) was part of the 2011 Provincial budget and the tax, its timelines and its penalties, are something these Funeral Directors think everyone needs to be aware of.
“It is frightening to see how this government has simply slipped this in without any discussion that I know of. It will have a major impact on all of us at some point,” Baragar says. “We need to be making lots of noise to hopefully get this revoked.”
The new tax program that Baragar finds frightening requires an executor to assess, appraise and value any and all property owned at the time of death.This EAT appraisal includes anything that is not passed directly to a spouse or passed through joint ownership. Assets that are being gifted to charities also need to be included in the valuation. The tax is then calculated and needs to be paid immediately to the Province of Ontario as a deposit. The calculation goes like this – $5 for each $1,000 of the first $50,000 and then $15 for each $1,000 of the value of the estate over $50,000. Read more