Estate planning is the process of arranging how your assets will be managed and distributed during your life and after your death. A well-structured estate plan can save your family tens of thousands of dollars in taxes, legal fees, and probate costs — while ensuring your wishes are carried out exactly as you intend.
A valid will directs how your assets are distributed after death. Without a will (dying "intestate"), provincial law determines who receives what — and it may not reflect your wishes. In Ontario, for example, if you die intestate with a spouse and children, your spouse gets the first $350,000 and splits the rest with your children.
What your will should address:
A basic will costs $400–$1,500 from a lawyer. Online will services ($40–$200) can work for simple estates but are not recommended for complex situations.
Assets with named beneficiaries pass directly to those beneficiaries without going through your will or probate. These include:
Review and update beneficiary designations every 2–3 years or after major life events (marriage, divorce, death of a beneficiary).
Assets held in joint tenancy (with right of survivorship) pass automatically to the surviving owner outside of probate. Common for: primary residence, joint bank accounts. Be cautious: adding a child as joint owner creates legal and tax complications (capital gains, attribution, creditor exposure).
Probate is the court process that validates your will and authorizes the executor to administer the estate. Probate fees are charged as a percentage of the estate's value. In Ontario, the rate is ~1.5% on assets over $50,000 — on a $1M estate, that's ~$14,500 in probate fees.
Strategies to reduce probate:
See our detailed probate fees guide for province-by-province rates.
Canada has no estate tax or inheritance tax, but there is a deemed disposition on death. This means all your capital property is treated as sold at fair market value on the date of death. Capital gains on investment accounts, rental properties, and cottage/vacation properties become taxable on your final return — potentially creating a large tax bill for your estate.
Exceptions: Assets transferred to a surviving spouse roll over tax-deferred. The principal residence is still exempt (if you haven't already moved to LTC).
Your executor (estate trustee) handles everything from obtaining probate, to paying debts, to filing your final tax return, to distributing assets. Being an executor is a significant legal responsibility that can take 1–3+ years. Choose someone organized, trustworthy, and with time to take on the role. You can appoint a trust company if needed (fees typically 3–5% of estate value).
For business owners or those with significant investment properties, an estate freeze crystallizes the current value of the estate in the owner's hands while future growth is allocated to children or a trust. See our dedicated estate freeze guide.
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