Are Legal Fees for Wills Tax-Deductible in Canada?

Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario

Are Legal Fees for Wills Ever Tax-Deductible in Canada?

Are legal fees for wills tax-deductible in Canada?

In Canada, legal fees for drafting a will are generally not tax-deductible for individuals.

The Canada Revenue Agency does not allow individuals to claim legal expenses incurred for personal matters as tax deductions. Since preparing a will is considered a personal expense, it does not qualify as a deductible expense on your personal income tax return.

However, there are some cases where estate-related legal fees are tax-deductible. For this, and more information on wills, keep reading.

Key Takeaways about Legal Fees and Tax Deductions

• You generally cannot claim legal fees for preparing a will, as these are considered personal legal fees and are not deductible under the Income Tax Act.
• Most legal costs incurred for basic estate planning, such as drafting wills or powers of attorney, are personal in nature and not tax-deductible.
• The legal fees paid to set up or update a standard will typically not qualify for any tax relief.
• Some legal fees incurred for more advanced estate planning, such as establishing a trust or managing business-related legal fees, may have limited deductibility if connected to business expenses or income-producing assets.
• Legal fees tied to retiring allowance or pension, Canada Pension Plan, or the Employment Insurance Act may be deductible in certain cases, but are unrelated to will preparation.

Executors or estate representatives may deduct legal fees incurred in probate or estate administration, but these apply to the estate’s income tax return, not an individual’s.

Legal Fees and Tax Deductions in Canada

The CRA makes a clear distinction between personal legal fees and income-related legal expenses.

Legal fees tied to managing or generating income—like those related to a rental property, employment dispute, or business transaction—may be deductible. But legal costs for will preparation don’t qualify, even though they serve a vital role in your financial plan.

That’s because they don’t generate taxable income or relate to a business activity. Think of will creation as a safeguard for your legacy, not a tax strategy on its own. (+)

Are Legal Fees for Wills Ever Deductible?

In most everyday situations, they are not.

However, if the legal work touches areas beyond simple will drafting—such as settling an employment-related matter involving pension income—there may be a narrow path to deduction. Even then, the connection must be clearly income-related, not just part of organizing your estate.

The CRA only allows deductions for legal fees that directly relate to earning income or securing an income-related right. Regular estate planning doesn’t meet that test.

📖Related Read: Tips on Creating Wills for Blended Families in Canada

Are Any Estate Planning Legal Fees Deductible?

Legal fees related to more complex estate planning may sometimes include deductible components.

Some examples of this include trust creation, business succession planning, or strategies to minimize estate taxes. But they are only tax deductible when they directly relate to income-producing activities.

For example, establishing a trust that holds a rental property might allow partial legal fee deductions if the trust generates taxable income. However, this is highly specific and often misunderstood. It’s critical to have both legal and tax advisors review the scope of work before assuming anything is deductible.

Legal Fees Connected to Probate and Estate Administration

This is where some legal fees can be deductible—but not for individuals. 

If you’re acting as an executor or estate trustee, legal fees for obtaining probate or managing the estate can often be claimed by the estate itself, not on your personal tax return.

These expenses would appear on the T3 return for the estate as administration costs. This includes legal advice, court filings, and help with asset distribution, as long as it relates to the estate’s affairs and not personal inheritance planning.

Tax and Estate Planning for Businesses

Business owners often engage in more advanced estate planning that includes structuring family businesses, transferring shares, or setting up holding companies and trusts. 

In these cases, some legal fees may qualify as deductible business expenses, especially if they relate to income generation, shareholder agreements, or the transfer of ownership. For example, using legal advice to reorganize shares or minimize capital gains during succession can be both a tax and estate strategy. Documentation and intent are key—the purpose must be business-related, not purely personal.

Final Thoughts

Most Canadians will not be able to deduct legal fees for will preparation or basic estate planning.

These are seen as personal safeguards, not tools for generating income. But in more complex estates—especially those involving businesses, trusts, or executor responsibilities—some legal expenses may qualify for deduction, either on the estate’s tax return or as a business cost.

When estate planning intersects with tax law, it’s worth getting proper guidance. The line between personal protection and

A Will Isn’t Enough to Protect Your Family’s Inheritance

Writing a will is a crucial step, but it’s just the beginning.

A will only states who gets what, but it doesn’t help you minimize estate taxes, avoid probate fees, or prevent legal delays.

In Ontario, probate fees (Estate Administration Tax) and capital gains taxes on properties can take a significant portion of your estate. If you own multiple properties, the financial burden could be even greater, forcing your loved ones to sell assets just to cover unexpected costs.

Without proper estate planning, your family could receive far less than you intended. The good news? There are strategies to protect your wealth—but they must be set up before it’s too late.

Keep Your Wealth in the Family with Proper Planning

A well-structured estate plan does more than just pass on your assets—it ensures your wealth stays in the family.

By using tools like trusts, life insurance, and gifting strategies, you can:

✅ Reduce or eliminate probate fees
✅ Minimize capital gains taxes on real estate
✅ Prevent legal disputes and family conflicts

Without these safeguards, your loved ones may face delays, unnecessary legal battles, and financial strain. A strong estate plan gives you peace of mind, knowing that your family will be cared for and your legacy will be protected exactly as you intended.

Schedule a Living Estate Plan Consultation

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 writing a will, you may find these articles helpful:

• Living Will Ontario: What It Is and How It Works
• What Are the Types of Wills in Ontario?
• What Is the Cost of a Will in Ontario?

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About the Author

RON COOKE, PRESIDENT & FOUNDER OF STRATEGIC WEALTH PROTECTION PARTNERS

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