Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario
How much are estate taxes in Ontario?
In Ontario, the estate tax, formally known as the Estate Administration Tax (EAT), is calculated as $15 per $1,000 of estate value over $50,000.
For example, an estate valued at $500,000 would incur approximately $7,000 in estate tax. This tax is payable during the probate process and can significantly reduce the amount passed on to beneficiaries.
What is the best way to avoid estate taxes in Ontario?
The most effective way to minimize estate taxes in Ontario is through proper estate planning.
Strategies include transferring assets into a living trust, designating beneficiaries for accounts like RRSPs or TFSAs, and holding property jointly with rights of survivorship. Creating multiple wills can also help exclude certain assets from probate, such as shares in private corporations.
A tax efficient way to pay any estate taxes and probate fees is to use properly structured life insurance to pay the liability.
Learn more about the difference between a living trust and a will in Canada HERE >
What is the best trust to avoid or minimize estate tax?
Living trusts are among the best tools to minimize estate tax in Ontario.
Assets placed in a living trust are not subject to probate, reducing overall costs. Spousal trusts and joint partner trusts can also defer taxes and provide financial security for a surviving spouse. Working with an estate planning professional ensures the trust is structured to maximize tax efficiency.
How can you avoid inheritance tax in Ontario?
Ontario does not have an inheritance tax, but the estate tax can significantly reduce the estate’s value before distribution to beneficiaries.
To minimize this impact, consider strategies like gifting assets during your lifetime, using trusts to bypass probate, and ensuring assets like life insurance are payable directly to beneficiaries. Proper planning ensures that more of your wealth is preserved for your loved ones.
How much does an estate have to be worth to go to probate in Ontario?
In Ontario, estates valued at over $50,000 generally require probate to confirm the executor’s authority.
Certain assets, like jointly held property or those with named beneficiaries, may bypass probate. However, it’s essential to consult with a professional to determine whether your estate needs probate and how to minimize related costs.
How can you avoid probate in Ontario?
You can avoid probate in Ontario by holding assets jointly with rights of survivorship, naming beneficiaries for registered accounts, or transferring assets into a living trust.
Using multiple wills can also help exclude specific assets from the probate process. Proper planning with an estate professional ensures you reduce costs and delays while maintaining control over your estate’s distribution.
Avoid Ontario’s Hefty “Death Tax”
While Ontario doesn’t have a direct estate tax on your total net worth, income tax on capital gains and deemed dispositions can have a significant impact on your estate.
These taxes can dramatically reduce the wealth you pass on to your loved ones.
For instance, assets like real estate (excluding your principal residence) and non-registered investments are deemed sold at fair market value upon death. The resulting capital gains are usually taxed at Ontario’s highest marginal tax rate, which exceeds 53.53% (2024).
Here’s an example: If you have an RRSP or RRIF worth $1,000,000, the government could take $535,000 in taxes upon your death.
That’s more than half of your hard-earned savings—gone to taxes, not your family. And that’s before factoring in additional costs like probate fees, executor fees, legal fees, and accounting fees. What will be left for your family?
Did you know that some of your assets may even face double taxation? Without proper planning, the total financial burden on your estate could be staggering.
Simple Steps Can Save You Millions
With our Living Estate Plan, you can not only minimize taxes but also protect and even grow your wealth. Our proven strategies help shield your assets, ensuring more of your legacy goes to your loved ones—not the government.
Discover How to Minimize Taxes and Secure Your Legacy
Did you know that without a solid estate plan, taxes and fees in Ontario could claim a significant portion of your wealth?
If you’ve worked hard to build your business, investments, and properties, protecting your legacy for your loved ones is critical. At Strategic Wealth Protection Partners, we specialize in helping high-net-worth individuals in Ontario secure their financial futures.
Our Living Estate Plan is designed to:
- Reduce estate taxes and probate fees.
- Simplify wealth transfer to your loved ones.
- Reflect your values and priorities in every detail.
Your Legacy Matters
With our personalized guidance, we’ll help you navigate options like Living Trusts to protect your assets and ensure your family’s peace of mind. Contact us today to book your Living Estate Plan Consultation and take the first step toward a secure future.
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:
- What Are the Disadvantages of a Living Trust in Ontario?
- Do Trusts Pay Taxes in Canada?
- Can I Put My House in a Living Trust in Canada?
- How to Avoid Inheritance Tax in Canada
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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Schedule a 30-minute consultation call with Strategic Wealth Protection Partners. Click HERE to schedule a consultation.
