Probate Fees in Ontario: How They Work and How to Minimize Them

When you die with assets in Ontario, your executor may need to apply for a Certificate of Appointment of Estate Trustee — commonly called probate — before certain assets can be transferred. And when that application is made, Ontario charges estate administration tax (EAT), commonly referred to as probate fees. For large estates, these fees add up to a significant sum. Understanding how they work — and how some Ontarians legally reduce them — is a meaningful part of estate planning.

At Pineault Wealth Management in London, Ontario, Marc Pineault works with clients to ensure their financial plans account for the full picture of what their estate will look like — including the tax and administrative costs their beneficiaries will face.

How Ontario Probate Fees Are Calculated

Ontario's estate administration tax is calculated on the total value of assets that flow through the estate — meaning assets that pass under the will and don't have a direct beneficiary designation or joint ownership. The current rate structure is:

• No tax on the first $50,000 of estate value
• Approximately $15 per $1,000 (1.5%) on estate value above $50,000

So an estate worth $1,000,000 that is fully subject to probate would generate roughly $14,250 in estate administration tax. An estate worth $2,000,000 would generate approximately $29,250. These are not trivial amounts, and they come directly off the top of what beneficiaries receive.

It's important to note that only assets forming part of the estate are subject to the tax. Assets that pass outside the estate — through beneficiary designations, joint ownership with right of survivorship, or specific trust structures — are generally not included.

What Passes Outside the Estate

Several common asset types can pass directly to a named beneficiary without going through the will, and therefore without triggering estate administration tax:

Registered accounts (RRSP, RRIF, TFSA): When you name a beneficiary directly on a registered account, those funds flow to the beneficiary outside the estate. For a TFSA, this can be done through a beneficiary designation or, in most provinces including Ontario, a "successor holder" designation for a spouse — allowing the account to continue tax-free.

Life insurance: Proceeds paid directly to a named beneficiary do not pass through the estate and are not subject to probate fees or income tax.

Jointly held assets: Assets held in joint tenancy with right of survivorship — typically a home or a joint bank account — pass directly to the surviving owner outside the estate. This is a common planning technique, but it carries its own risks (discussed below).

Pension plans: Similar to registered accounts, pension death benefits paid to a named beneficiary typically pass outside the estate.

Strategies to Reduce Probate Exposure

While some probate-reduction strategies are straightforward, others require careful legal and tax advice. Common approaches include:

Maximizing beneficiary designations. Ensuring that all registered accounts, life insurance policies, and pensions have up-to-date named beneficiaries is one of the simplest and most impactful steps. An outdated or missing designation can push assets into the estate unnecessarily.

Joint ownership. Holding assets jointly with a spouse or adult child causes those assets to pass outside the estate at death. However, adding a child to title on a property or bank account has implications — it can trigger a deemed disposition for capital gains purposes, affect access to the principal residence exemption, and expose the asset to the child's creditors or relationship breakdowns. This is not a step to take casually.

Multiple wills. Ontario allows for the use of multiple wills — one that covers assets requiring probate (like real property) and one that covers assets that don't (like shares in a private corporation). The private will is not submitted for probate, keeping those assets out of the EAT calculation. This is a legitimate and commonly used strategy for business owners.

Alter ego trusts and joint partner trusts. For individuals over 65, these trust structures can hold assets outside the estate while providing control and flexibility during the settlor's lifetime. They require proper legal setup and have ongoing administrative requirements.

The Cost of Over-Optimizing

It's worth saying clearly: not every estate needs an elaborate probate-avoidance strategy. The administrative and legal costs of setting up complex structures can sometimes exceed the probate fees you're trying to avoid. And some strategies — particularly adding family members to title of assets — introduce new risks that may be worse than the original problem.

The right approach depends on the size of your estate, the nature of your assets, your family situation, and your overall financial plan. At Pineault Wealth Management, Marc Pineault works with clients and their legal advisors to ensure estate planning decisions are made in that full context — not in isolation.

Book a consultation with Marc Pineault

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This article is for educational purposes only and does not constitute personalized financial advice. Please consult a qualified financial planner before making any financial decisions.