What Is Probate?
Probate is the legal process of validating a will and confirming the executor's authority to administer the estate. Provincial courts charge fees (called estate administration tax in Ontario) based on the total value of assets passing through the estate. These fees can be substantial — particularly in Ontario and British Columbia — and are in addition to legal fees for the probate application.
Provincial Probate Fee Comparison
| Province | Fee Structure | Fee on $1M Estate | Fee on $3M Estate |
|---|---|---|---|
| Ontario | $5/thousand (first $50K) + $15/thousand (over $50K) | $14,500 | $44,500 |
| British Columbia | $0 (first $25K) + $6/thousand (25K-50K) + $14/thousand (over $50K) | $13,450 | $41,450 |
| Alberta | Flat fee schedule (max $525) | $525 | $525 |
| Quebec | $0 (notarial will) or ~$1,000 (non-notarial) | $0-$1,000 | $0-$1,000 |
| Nova Scotia | $85.60 + $16.12/thousand (over $10K) | $16,034 | $48,274 |
Assets That Bypass Probate
Not all assets pass through probate. The following transfer directly to beneficiaries outside the estate:
- Life insurance proceeds: Paid directly to named beneficiaries
- Segregated funds: As insurance contracts, paid directly to named beneficiaries
- Registered accounts with beneficiaries: RRSP, RRIF, TFSA with named beneficiaries (or successor holders for TFSA)
- Joint tenancy property: Passes to surviving joint tenant by right of survivorship
- Assets in a trust: Inter vivos (living) trusts hold assets outside the estate
Segregated Funds as a Probate Strategy
For Ontario and BC residents with substantial non-registered investment portfolios, segregated funds provide automatic probate bypass because they are insurance contracts with named beneficiaries. On a $2,000,000 non-registered portfolio in Ontario, probate savings would be approximately $29,500 — a one-time saving that must be weighed against the ongoing higher MER over the investor's lifetime.
The break-even analysis depends on life expectancy: if the additional MER costs $10,000 per year, probate savings of $29,500 are recovered in about 3 years. For investors expected to live 10+ more years, the cumulative extra fees ($100,000+) far exceed the probate savings. Alternative probate-avoidance strategies (alter ego trusts, joint ownership) may be more cost-effective for large portfolios.
Probate planning should be integrated with your overall estate planning strategy — considering not just fees but also privacy, speed of distribution, and family dynamics.