What Is Probate and Why Does It Matter?
Probate is the legal process of validating a will and granting the executor authority to administer the estate. In most provinces, this involves paying an estate administration tax (commonly called probate fees) based on the total value of assets passing through the will. While the process provides legal certainty, the associated fees and delays make probate minimization a key objective in Canadian estate planning.
The impact of probate extends beyond fees. The probate process typically takes 4 to 12 months, during which assets may be frozen and beneficiaries cannot receive their inheritance. For families relying on inherited funds, this delay creates real financial hardship. Additionally, probated wills become public documents — meaning anyone can access details of your estate, which many families find unacceptable.
Provincial Probate Fee Comparison
Probate fees range from zero in Quebec (notarial wills avoid probate entirely) to 1.5% in Ontario and British Columbia for estates over $50,000. For a $3 million estate, Ontario probate fees would be approximately $44,250 — a significant cost that proper planning can substantially reduce.
Provincial Probate Fee Schedule
| Province | Fee Structure | Cost on $2M Estate |
|---|---|---|
| Ontario | 0.5% first $50K + 1.5% above | $29,500 |
| British Columbia | Graduated to 1.4% above $50K | $27,550 |
| Alberta | Flat $525 maximum | $525 |
| Quebec | $0 (notarial will) | $0 |
| Nova Scotia | Approximately 1.7% | $33,686 |
| Saskatchewan | $7 per $1,000 | $14,000 |
Probate Avoidance Strategies
Several legitimate strategies can reduce or eliminate probate exposure:
- Beneficiary designations — RRSP, TFSA, and life insurance proceeds pass directly to named beneficiaries outside the estate
- Joint ownership with right of survivorship — Property passes automatically to the surviving owner (caution: tax and control implications)
- Alter ego trusts (age 65+) — Assets transferred to trust during lifetime avoid probate at death
- Multiple wills — In Ontario, a secondary will for corporate assets avoids probate on those assets
- Inter vivos gifts — Transferring assets during lifetime (may trigger immediate tax consequences)
- Family trusts — Assets already in trust do not form part of the estate
The Multiple Wills Strategy (Ontario)
Ontario courts have confirmed that a person can have two valid wills — a primary will for assets requiring probate (real estate, publicly traded securities) and a secondary will for assets that do not require probate (private company shares, personal property). This strategy can save incorporated professionals significant probate fees on their corporate assets, which often represent the majority of their wealth.
For a professional with $1.5 million in corporate shares and $500,000 in other assets, the multiple wills strategy reduces probate fees from approximately $29,500 to $7,250 — a saving of over $22,000 with minimal additional legal cost.
Balancing Probate Avoidance with Other Goals
While minimizing probate is desirable, it should not override other estate planning objectives. Joint ownership, for example, can create immediate tax consequences, expose assets to a co-owner's creditors, and complicate estate planning for blended families. Every probate avoidance strategy must be evaluated in the context of your complete financial and family situation.