Do you know that it is possible to avoid probate tax on some of your assets?

Probate tax is payable when the executor of an estate obtains a Certificate of Estate Trustee with a Will (previously known as Letters Probate) from the Court. A Certificate (“Probate”) is required in order for the executor to be able to sell, transfer or otherwise deal with certain types of assets. If all of your assets are disposed of in one Will, probate tax will be payable on the value of all of your assets. Some assets, however, may be dealt with by an executor without Probate.

The opportunity exists in Ontario for a person to have more than one Will, each Will dealing with different assets. One Will deals with assets that do not require Probate and the other Will deals with assets that do require Probate. If the Wills are properly drawn, probate tax is payable on the value of the assets covered by the probated Will.

No probate tax is payable on the value of the assets in the unprobated Will. The tax is $250 on the first $50,000 of assets and 1½ % on the excess.
Considerable savings can be achieved through the use of multiple Wills in the appropriate circumstances.

Mills & Mills LLP can provide experienced advice as to the situations in which multiple Wills may be an appropriate part of an estate plan.