Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario
What Is the Best Trust to Avoid Probate in Canada?
Trusts are powerful estate planning tools that allow assets to bypass probate, ensuring a smoother, faster, and more private transfer of wealth to beneficiaries.
Choosing the right type of trust can significantly reduce legal costs and administrative delays.
As a Canadian, what is the best type of trust to avoid probate?
The best type of trust to avoid probate in Canada is a living trust (inter vivos trust).
Unlike a will, a living trust allows assets to be transferred to beneficiaries without going through probate, ensuring privacy and avoiding unnecessary fees.
Alter ego trusts and joint partner trusts are also effective for individuals over 65, as they allow assets to pass directly to beneficiaries while deferring capital gains tax until the surviving spouse passes away.
What are the best ways to avoid probate in Canada?
The most effective ways to avoid probate include:
- Using trusts to hold assets outside of the estate.
- Joint ownership with rights of survivorship, which allows property to transfer automatically to the surviving owner.
- Naming beneficiaries on registered accounts like RRSPs, RRIFs, and TFSAs.
- Gifting assets before death to remove them from the estate.
Proper estate planning ensures that wealth is transferred efficiently while minimizing probate delays and costs.
What are the best ways to avoid paying probate fees in Ontario?
In Ontario, probate fees (Estate Administration Tax) can be minimized by:
- Holding assets in a secondary will for private company shares, art, and collectibles.
- Using multiple wills to separate assets subject to probate from those that are not.
- Transferring real estate and bank accounts into joint ownership.
- Setting up a trust, such as an alter ego trust, for tax-efficient wealth transfer.
Strategic planning with an estate professional can help maximize inheritance while reducing probate expenses.
Which types of trusts are not good for real estate?
Not all trusts are ideal for holding real estate.
Bare trusts, which act as nominee arrangements, do not offer probate protection or tax advantages. Similarly, testamentary trusts (created upon death) do not avoid probate since the property is still part of the deceased’s estate.
Additionally, discretionary trusts can complicate real estate management due to trustee control, making them less efficient for personal residences or investment properties.
How can I use a living trust for estate planning in Canada?
A living trust allows you to transfer ownership of assets while retaining control during your lifetime.
Upon death, assets pass directly to beneficiaries without probate delays or fees. This is particularly useful for real estate, investments, and business assets. A well-structured trust also protects beneficiaries from creditors, divorce settlements, and estate disputes, ensuring a seamless and tax-efficient wealth transfer.
Discover the Benefits of a Living Trust in Ontario
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.
Take control of your future—start planning today!
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 starting your estate planning process, you may find these articles helpful:
- Do Trusts Pay Taxes in Canada?
- Living Trust vs a Will in Canada
- How Does a Living Trust Work in Ontario?
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.
Schedule a Call
Schedule a 30-minute consultation call with Strategic Wealth Protection Partners. Click HERE to schedule a consultation.
