Survivor and estate planning

8.1 Core Ontario documents and safeguards

8.2 Multiple wills in Ontario

Ontario residents with private-company shares, shareholder loans, or other assets that may be administered without a probate certificate sometimes use separate primary and secondary wills so only assets requiring probate are submitted for estate administration tax. This is a specialized legal strategy: drafting errors, executor clauses, asset classification, later transactions, and corporate or banking requirements can defeat the plan. Use an Ontario estates lawyer and review the wills after any corporate reorganization or major asset change.

8.3 RDSP and disabled beneficiaries

A Registered Disability Savings Plan can provide tax-deferred growth and may attract federal grants and bonds for an eligible beneficiary. Estate plans for a disabled beneficiary should coordinate RDSP rules, disability benefits, Henson or other discretionary trusts where appropriate, life insurance, trustee selection, and the effect of inheritances on income-tested

supports. Specialized legal and tax advice is important.

8.4 Survivor income planning

• ☐ Estimate cash flow and tax if either spouse dies first.
• ☐ Confirm combined CPP retirement and survivor benefit assumptions rather than adding two full benefits.
• ☐ Review employer-pension survivor options and indexing.
• ☐ Check whether the survivor can manage housing, bills, investments, passwords, taxes, and care.
• ☐ Plan liquidity for final tax, funeral, legal/accounting fees, property carrying costs, and family equalization.

8.5 Final tax, probate, and charitable giving

Death can trigger RRSP/RRIF income inclusion, deemed dispositions, capital gains, final and estate returns, and Ontario Estate Administration Tax (EAT) when a certificate is required. Spousal and certain dependant rollovers can defer tax. Charitable gifts, beneficiary designations, and donated publicly traded securities may reduce tax but must be coordinated with liquidity and family goals.

8.6 What to do after a death

The estate trustee and family should avoid rushed financial decisions. A power of attorney ends at death; authority then comes from the will, the estate trustee appointment, and any required court certificate.

Immediate checklist:

• ☐ Locate the original will and confirm the estate trustee.
• ☐ Obtain death certificates and secure the home, vehicles, valuables, pets, mail, and insurance.
• ☐ Notify Service Canada, pension administrators, insurers, banks, investment firms, and other benefit providers.
• ☐ Apply for CPP survivor and death benefits, workplace-pension benefits, and life-insurance proceeds.
• ☐ Identify assets, debts, joint ownership, and beneficiary designations before moving or closing accounts.
• ☐ Determine whether probate or a Certificate of Appointment is required.
• ☐ Arrange the final income-tax return and any estate tax returns.
• ☐ Keep complete records of expenses, receipts, payments, and distributions.
• ☐ Do not distribute the estate until taxes, debts, claims, and sufficient reserves have been addressed.

Complex estates, family conflict, businesses, foreign assets, or uncertain tax liabilities may require legal and tax advice.

Official source: Government of Ontario - What to do when someone dies

8.7 Probate-avoidance alternatives and their risks

Beyond multiple wills (§8.2) and beneficiary/successor designations (§8.1), retirees aged 65+ have additional tools to reduce Ontario Estate Administration Tax and simplify estate transfer. Each has real benefits and significant risks; all require an Ontario estates lawyer and, usually, tax advice.

High-risk and frequently misunderstood. Under Ontario/Canadian law (the Pecore line of cases), a gratuitous transfer to an adult child is presumed to be held in resulting trust for the estate — so it may not pass Adding an adult child to that child as Joint ownership as a joint owner of a intended and can with right of home or account so On the surface, spark litigation. It survivorship it passes to them avoids probate on also exposes the (JTWROS) with an automatically on that asset. asset to the child's adult child death. creditors, divorce/family-law claims, and bankruptcy, can cause loss of control and unintended capital-gains or principal-residence consequences, and may unintentionally disinherit other beneficiaries. Do not use as a DIY probate shortcut.

Planning points: ● "Avoiding probate" is only one goal; weigh it against tax cost, control, fairness among heirs,

• Document intent clearly (especially for any joint ownership) and keep the strategy consistent with the will(s) and beneficiary designations.
• Review all of these after any major asset change, relationship change, or change in the health of the owner or a joint owner.

8.8 Capacity, incapacity, and guardianship in Ontario

Powers of attorney (§8.1) only work if they are made while you still have capacity and are respected when needed. This section explains the Ontario framework — the Substitute Decisions Act and Health Care Consent Act — at a plain-language level.

The ability to understand relevant information and appreciate the consequences A diagnosis (e.g., early of a decision. Capacity is dementia) does not Capacity decision-specific and can automatically mean loss of change over time — legal capacity. someone may be capable of some decisions but not others.

• The single most important protective step is to have valid, current POAs for both Property and Personal Care prepared before any capacity concern arises.
• Review POAs after a move, a diagnosis, a death, or a family conflict; confirm your named attorneys are still willing and appropriate.