Estate Planning & Succession Strategies

Comprehensive estate planning is about much more than drafting a will. It is about ensuring that your assets reach the right people in the most efficient way possible — while minimizing the taxes, delays, and costs that can erode the value of what you have worked to build. At Goldstone Law Professional Corporation, we work with individuals and families across Ontario to develop estate plans that are thoughtful, legally sound, and tailored to each client’s unique circumstances and goals. Effective estate planning requires an integrated approach that coordinates your will, your Powers of Attorney, your beneficiary designations on registered accounts and insurance policies, your property ownership arrangements, and any trusts you may have established or wish to establish. We bring all of these elements together into a cohesive plan and ensure that each component works together as intended.

Estate Administration Tax (Probate) in Ontario

Ontario’s Estate Administration Tax (EAT) — commonly known as probate fees — is calculated as approximately 1.5 percent of the value of the deceased’s estate assets that pass through the primary will. For a substantial estate, this tax can represent tens of thousands of dollars. Reducing the assets subject to EAT through proactive planning is a legitimate and widely used estate planning strategy.

Multiple Wills

As discussed elsewhere in our estate planning services, the use of a primary will and a secondary will is one of the most effective probate minimization strategies for Ontario residents with significant private corporation interests. Assets that do not require probate — particularly private company shares and certain personal property — are segregated into the secondary will, which does not need to be submitted for probate. This can produce substantial EAT savings for business owners and investors.

Beneficiary Designations

Registered accounts (RRSPs, RRIFs, TFSAs, and pension plans) and life insurance policies allow you to designate a named beneficiary to receive the proceeds directly on your death, bypassing your estate entirely. Assets that pass to named beneficiaries are not subject to EAT and do not pass through your will. Keeping beneficiary designations current — and ensuring that they are consistent with your overall estate plan — is an essential element of proactive estate planning.

Joint Ownership with Right of Survivorship

Property held jointly with right of survivorship — such as a jointly owned family home — passes automatically to the surviving joint owner on the first owner’s death, without passing through the estate. This avoids EAT on that asset and provides for efficient transfer of ownership. However, joint ownership has its own legal and tax implications, including potential attribution of income, deemed disposition issues for assets other than a principal residence, and exposure to the joint owner’s creditors. We advise clients on whether joint ownership is appropriate for their specific assets and circumstances.

Alter Ego and Joint Partner Trusts

Individuals aged 65 and older can transfer assets into an alter ego trust (for a single individual) or a joint partner trust (for a couple) on a tax-deferred basis. On the settlor’s death, the trust assets do not form part of the estate and are therefore not subject to EAT. These trusts also avoid the delays and public nature of the probate process, providing for the efficient, private distribution of the trust assets to the named beneficiaries.

Minimizing Income Tax on Death

In Canada, a taxpayer is deemed to have disposed of all their capital property at fair market value immediately before death. This deemed disposition can trigger a significant income tax liability — particularly for individuals who hold appreciated investment property, publicly traded securities, or business interests. Strategies for minimizing income tax on death include: the spousal rollover, which defers the deemed disposition until the death of the surviving spouse; charitable bequests, which can generate a charitable donation tax credit that offsets the income tax on the deemed disposition; and the careful use of capital gains exemptions where available.

Reviewing and Updating Your Estate Plan

An estate plan is not a one-time exercise. It must be reviewed and updated regularly to reflect changes in your personal circumstances (marriage, separation, the birth of children or grandchildren, the death of a beneficiary or executor), changes in your financial position (the acquisition or sale of significant assets, changes in business ownership), and changes in the law that may affect the legal or tax effectiveness of your existing planning. We recommend that clients review their estate plans every three to five years, or whenever a significant life event occurs. We also notify clients of significant changes in estate planning law that may affect existing plans.

Frequently Asked Questions — Estate Planning & Succession Strategies

What is a secondary will and do I need one?

A secondary will (also called a secondary probate will) is a will that deals with assets that do not require probate — most commonly, private company shares. By segregating these assets into a secondary will, the value of those assets is excluded from the estate administration tax calculation, which can result in significant tax savings. Whether you need a secondary will depends on whether you hold significant assets that are not subject to probate. We assess each client’s situation individually and recommend a secondary will where the potential tax savings justify it.

Is estate planning only for wealthy individuals?

Absolutely not. Estate planning is important for anyone who has dependants, owns property, has specific wishes about the distribution of their assets, or wants to ensure that the right person has authority to manage their affairs if they become incapacitated. The complexity and cost of an estate plan scales with the complexity of the estate — a simple will and Powers of Attorney can be prepared cost-effectively and provide essential protection for individuals at every income level.

Contact Goldstone Law today to schedule your estate planning consultation. We help individuals and families across Ontario protect their assets, minimize taxes, and ensure that their wishes are carried out with care and precision.