Case Study: How a Joint Partner Trust Helped Reduce Probate Fees in Ontario

Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario, CEA®, Member of the Estate Planning Council Canada

Eugene and Kathy*, ages 76 and 75, came to me looking for ways to reduce the taxes and estate fees that could affect the inheritance they planned to leave to their three children. 

During our first meeting, I explained our 5-Step Living Estate Plan process, where we provide the first three steps at no cost or obligation. Together, we reviewed all seven available options for reducing estate taxes and probate fees.

Summary of Key Points

• Challenge: An Ontario couple wanted to reduce probate fees and estate administration costs so more of their wealth would pass to their three children.
• Strategy: A Joint Partner Trust was established for their non-registered investments, alongside updated beneficiary designations and coordinated legal planning.
• Additional Planning: Their RRSP and TFSA beneficiary designations were reviewed and updated, and their wills were aligned with the overall estate plan.
• Outcome: Nearly all of their financial assets were positioned to transfer outside of their estate, helping reduce future probate fees and simplify the administration of their estate.
• Collaborative Approach: SWPP coordinated with the clients’ accountant and lawyer to ensure the trust, beneficiary designations, and wills worked together as part of a single Living Estate Plan.

The Problem

Eugene and Kathy owned a mortgage-free home, approximately $1.5 million in RRSPs, $1.5 million in non-registered investments, and TFSAs worth approximately $160,000 each. 

Their goal was simple: preserve as much of their estate as possible for their children.

After reviewing their assets, it became clear that there were limited opportunities to reduce the future tax liability on their RRSPs. Accelerating RRSP withdrawals would have increased their current taxable income and potentially created even more tax on the resulting non-registered investments.

The Solution

I worked with Eugene and Kathy and consulted with several accountants to explore every available option. We determined the best solution for their situation: a Joint Partner Trust.

This was the most appropriate solution for their circumstances.

The Living Estate plan we created for them included:

• Establishing a Joint Partner Trust for their non-registered investments to reduce future probate fees.
• Updating beneficiary designations on their RRSPs.
• Reviewing and restructuring their TFSA designations to improve the transfer of assets outside the estate.
• Coordinating with the lawyer to ensure their wills reflected the overall estate plan.

We also explored a permanent life insurance strategy that could have provided tax-efficient funds to help offset future estate taxes. 

Unfortunately, due to health concerns, Eugene and Kathy did not qualify for coverage.

As a result, nearly all of their financial assets were positioned to transfer outside of their estate, helping reduce future estate administration costs and probate fees. Their home remained outside the strategy because they planned to downsize within the next five years.

Because the available planning opportunities were projected to save less than $100,000 in taxes and estate fees, we did not charge Eugene and Kathy for our planning services or for the work with the accountant and lawyer. (You can learn more about SWPP’s $100,000 promise here.)

Eugene and Kathy paid the accountant to establish the trust and the lawyer to update their wills, ensuring that every aspect of their estate plan was fully coordinated and working together.

*Names and identifying details have been changed to protect the privacy of SWPP’s clients.

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:

• Is a Living Trust Better than a Will in Canada?
• How to Create a Living Trust in Canada
• What Is the Best Trust to Avoid Probate in Canada?

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About the Author

RON COOKE, PRESIDENT & FOUNDER OF STRATEGIC WEALTH PROTECTION PARTNERS

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