Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario, CEA®, Member of the Estate Planning Council Canada
Kevin* came to me at age 62 as part of our Living Estate Plan process.
He owned his home outright and was concerned about the probate fees his estate could face when he passed away. His children were still living with him, and he wanted to make things as simple and cost-effective as possible for them in the future.
Summary of Key Points
- Challenge: An Ontario homeowner wanted to reduce probate fees on his family home and believed a living trust was the best solution.
- Strategy: A detailed comparison was completed to evaluate the costs and benefits of a living trust against maintaining his existing estate plan.
- Additional Planning: The review considered probate fees, land transfer tax, legal and ongoing trust administration costs, future housing plans, and existing life insurance coverage.
- Outcome: The analysis showed that a living trust would not provide enough benefit to justify the cost, allowing him to avoid unnecessary expenses while keeping an estate plan that better matched his goals.
- Key Lesson: The best estate planning strategy depends on your individual circumstances. Carefully evaluating all available options can prevent unnecessary complexity and expense while leading to a better long-term outcome.
The Problem
Kevin’s primary goal was to avoid probate fees on his home.
Initially, he believed placing the property into a living trust would be the best solution. However, after reviewing his situation in detail, we discovered there were additional costs and considerations that needed to be evaluated before making that decision.
The Solution
I helped Kevin compare the costs and benefits of transferring his home into a living trust versus maintaining his current estate plan.
The review included:
- An analysis of the probate fees that could apply to his home
- Evaluating a living trust as a probate avoidance strategy
- Reviewing the land transfer tax costs associated with transferring the property into the trust
- Considering the legal costs to establish the trust and the ongoing administration expenses
- Reviewing his existing life insurance coverage as a source of liquidity for future estate expenses
During the planning process, Kevin shared that he intended to sell the home and rent in the future.
Given his goals, the costs of a trust outweighed the potential benefits. As a result, he avoided unnecessary trust and administration expenses while gaining confidence that his existing plan was appropriate for his circumstances.
Kevin was happy to learn he did not need the expense of a trust. And he was really happy to learn this without paying any fees. The first 3 steps of SWPP’s planning process are complementary.
We only get paid if you decide to use one of the strategies that we offer. We believe that you should know all your options first before you spend any money.
*Names and identifying details have been changed to protect the privacy of SWPP’s clients.
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Are you an Ontario resident considering a living trust as part of your estate planning?
At Strategic Wealth Protection Partners, we’re here to guide you through every step of the process with expert advice and personalized support. Begin your estate planning journey today with a Living Estate Plan Consultation from our experienced team.
Our mission at SWPP is to help you create an estate plan that secures your legacy, shields your assets from unnecessary taxation, and ensures your loved ones are cared for. By designing a living trust tailored to your goals, our experts will help you build a plan that truly reflects your values and priorities.
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Planning your legacy is about more than numbers—it’s about ensuring your family remembers you and your values are honoured for many years to come.
Estate planning and trusts can feel overwhelming, especially if it’s your first time. That’s why we’re here.
With our simple, 5-Step Living Estate Plan, we make the process easy, helping you create a comprehensive estate plan or trust that protects your assets from taxes and probate fees while preserving your legacy. Tools like The Final Word Journal capture your story, wishes, and essential details like accounts and end-of-life plans, ensuring your family has clarity and comfort.
Take the first step today—schedule a consultation call and give your family the ultimate gift: peace of mind and the assurance they were always your priority.
Read More
If you’re starting your estate planning process, you may find these articles helpful:
- Case Study: Using a Trust to Preserve a $12M Real Estate Portfolio
- How to Avoid Capital Gains on a Cottage in Ontario
- Case Study: How Holding a Cottage in a Trust Created a Family Dispute
About the Author
RON COOKE, PRESIDENT & FOUNDER OF STRATEGIC WEALTH PROTECTION PARTNERS
With over 30 years in financial services, I’ve seen the challenges families face when a loved one passes—lost assets, unnecessary taxes, and emotional stress. That’s why I created the Living Estate Plan, a comprehensive process to protect assets, eliminate estate and probate fees, and create legacies that are remembered for many years to come.
This plan ensures your family receives not just your wealth, but a meaningful reminder of your care and love. Tools like The Final Word Journal capture your story, wishes, and essential details, offering clarity and comfort during difficult times.
Your final gift should be more than money—it should be peace of mind, cherished memories, and an organized estate.
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