Probate in Ontario
Probate confirms the will and gives the estate trustee authority. Ontario Estate Administration Tax is $0 on the first $50,000 and $15 per $1,000, or part, above $50,000. Tax is only one cost; delay, legal fees, carrying costs, income tax, poor records, and disputes may matter more.
| Estate value subject to probate | Approximate tax |
|---|---|
| $250,000 | $3,000 |
| $500,000 | $6,750 |
| $1,000,000 | $14,250 |
| $1,200,000 | $17,250 |
Plan asset by asset
Primary residence
The principal residence exemption may shelter gains to death when the property qualifies. Keep purchase, improvement, designation, and date-of-death valuation records. Appreciation after death may be taxable to the estate. Sole ownership commonly requires probate; true joint tenancy may pass to the survivor. Adding an adult child merely to avoid probate can create creditor, divorce, tax, principal-residence, and family-dispute risks.
RRSP and RRIF
Fair market value is generally included in the deceased's income unless a qualifying rollover applies, often to a spouse/common-law partner or certain dependent children. A named beneficiary may receive funds outside the estate, while tax remains on the final return—and may face statutory joint liability for unpaid tax up to the value received. Coordinate designations, the will, liquidity, and equalization clauses.
TFSA
Value at death can generally be received tax-free; post-death growth may be taxable. A spouse/common-law partner named successor holder can continue the account without using their room. Review designations after family changes.
Cash and joint accounts
Sole accounts usually enter the estate. Joint accounts with adult children require clear evidence of beneficial ownership. Use powers of attorney for lifetime help instead of undocumented convenience ownership.
Life insurance
A direct beneficiary can provide fast liquidity outside the estate; naming the estate generally exposes proceeds to estate creditors and probate value. Coordinate insurance with the will, tax obligations, minors, vulnerable beneficiaries, and contingent beneficiaries.
Ontario common-law caution
Federal tax and registered-plan rules may treat a qualifying common-law partner like a spouse, but Ontario succession and family-property law is different. An unmarried partner does not automatically receive all intestacy, matrimonial-home, or equalization rights available to a married spouse. Align title, beneficiary designations, wills, powers of attorney, and any cohabitation agreement.
Probate, joint ownership, or trust?
| Structure | Best fit | Main risk |
|---|---|---|
| Will and probate | Clear conventional authority, especially with multiple beneficiaries. | Delay, paperwork, tax, and carrying costs. |
| True joint ownership | Often strongest for spouses who are genuine co-owners. | Adult-child creditor, divorce, tax, sibling, and ownership disputes. |
| Lifetime trust | Privacy, incapacity continuity, blended families, or long-term control. | Setup, annual compliance, trustee duties, deemed dispositions, and principal-residence limits. |
Alter ego and joint partner trusts are generally age-65+ structures with strict lifetime-benefit conditions. Ordinary inter vivos trusts can trigger immediate tax; testamentary trusts arise under the will and usually do not avoid probate on assets entering the estate. A trust can save probate tax but cost more overall, so use it for broader planning reasons.
Multiple wills
Ontario residents with private-company shares or specialized assets can ask an estate lawyer whether coordinated primary and secondary wills could keep qualifying assets outside probate. Drafting must prevent one will from revoking the other.
Estate trustee obligations
- Secure, insure, value, and document assets.
- Apply for the estate certificate when required and file the Estate Information Return.
- Prepare the final T1 and required T3 returns.
- Track date-of-death values, adjusted cost bases, income, expenses, and distributions.
- Consider a CRA clearance certificate before final distributions.
- Maintain beneficiary accounting and document taxable executor compensation.
Practical checklist
- Review the will and all beneficiary/successor designations.
- Confirm legal and beneficial ownership of real estate and joint accounts.
- Estimate final tax, especially RRSP/RRIF tax and post-death gains.
- Keep enough estate cash for tax, funeral, professional, and property costs.
- For common-law partners, explicitly coordinate documents and title.
- Get Ontario legal and tax advice before using trusts, multiple wills, or adult-child joint ownership.
- Review after marriage, separation, divorce, death, a move, major asset changes, or conflict.
Reference points
Confirm current rules with Ontario's Estate Administration Tax and Estate Information Return guidance, CRA deceased-person and registered-plan guidance, Ontario succession legislation, and qualified Ontario estate and tax professionals.
General planning information—not legal, tax, or financial advice. Professional advice is essential before changing title, creating a trust, using multiple wills, or making major beneficiary changes.