Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario
Who Pays Probate Fees in Ontario?
Probate fees, also known as the Estate Administration Tax, are a cost associated with validating a will and administering an estate in Ontario.
Understanding who is responsible for these fees and how they are calculated can help minimize expenses and ensure a smooth estate transition.
Who exactly pays probate fees in Ontario?
Probate fees in Ontario are paid by the estate before assets are distributed to beneficiaries.
The executor of the estate is responsible for ensuring these fees are paid, typically using estate funds. If there are insufficient funds, assets may need to be liquidated to cover the cost. Beneficiaries do not directly pay probate fees, but they may receive a reduced inheritance if probate costs are high.
How is probate calculated in Ontario?
Probate fees in Ontario are calculated based on the total value of the deceased’s assets that require probate.
The Estate Administration Tax is:
- $0 for the first $50,000 of the estate
- 1.5% (or $15 per $1,000) on the value of the estate above $50,000
Certain assets, such as jointly held property or those with named beneficiaries, may be excluded from this calculation.
Ontario Probate Calculator
Ontario Probate Fee Calculator
How much are probate fees in Ontario for a $1,000,000 estate?
For an estate valued at $1,000,000, probate fees are calculated as follows:
- The first $50,000 is exempt from probate fees.
- The remaining $950,000 is taxed at 1.5%, resulting in a probate fee of $14,250.
These fees must be paid before the estate is distributed to beneficiaries.
How do I avoid probate fees in Ontario?
There are several legal ways to minimize or avoid probate fees in Ontario:
- Holding assets jointly with rights of survivorship (e.g., real estate, bank accounts).
- Designating beneficiaries on RRSPs, RRIFs, TFSAs, and life insurance policies.
- Using multiple wills to separate probate and non-probate assets.
- Establishing a trust to hold assets outside the estate.
Proper estate planning with a professional can significantly reduce probate costs.
Are vehicles subject to probate in Ontario?
If a vehicle is owned solely by the deceased, it is subject to probate unless its total value, along with other estate assets, is below the probate threshold.
If the vehicle was jointly owned, it transfers directly to the surviving owner without probate. In some cases, the Ontario Ministry of Transportation may allow a vehicle transfer without probate if the estate is small and no disputes exist.
What assets are subject to probate fees in Ontario?
Assets that generally require probate include:
- Real estate solely in the deceased’s name
- Bank accounts without a joint owner or named beneficiary
- Investments not designated to a specific beneficiary
- Shares in private companies (unless covered by a secondary will)
- Personal property of significant value (e.g., collectibles, artwork, or jewelry)
Are any assets not subject to probate fees in Ontario?
Yes, certain assets bypass probate and do not incur probate fees:
- Jointly owned property with rights of survivorship (e.g., homes, bank accounts).
- Registered accounts with named beneficiaries (RRSPs, RRIFs, TFSAs, pensions, life insurance).
- Assets held in a trust, which are transferred outside of the estate.
- Private company shares covered by a secondary will to avoid probate.
Strategic estate planning can help keep more wealth in the hands of your beneficiaries rather than paying unnecessary probate fees.
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 Assets Are Not Subject to Probate in Canada?
- How to Avoid Inheritance Tax in Canada
- How Much Can You Inherit Without Paying Taxes In Canada?
- What Is the Tax Rate for Trusts 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.
