Ontario Probate Fees: Avoidance Strategies, Multiple Wills, and the Cross-Border Layer

Ontario’s estate administration tax charges 1.5% on every dollar of estate value above $50,000. On a $2 million estate, that’s roughly $29,000 paid to the province before a single beneficiary sees a cent. No other province comes close to that rate at scale. The tax hits assets that pass through probate, which means the executor needs a certificate of appointment of estate trustee and the province takes its percentage of the estate’s value on the way through. But “assets that pass through probate” is a narrower set than “everything the deceased owned,” and the gap between those two categories is where the planning lives.

This guide covers the fee structure, the five main strategies for reducing or eliminating the bill, and the cross-border complication that catches US-connected Canadians off guard: probate avoidance in Ontario doesn’t necessarily mean estate tax avoidance in the US, and some probate-avoidance structures create US compliance obligations that cost more annually than the probate fee they saved.

How does Ontario’s probate fee work?

Ontario calls it “estate administration tax” and charges it when the estate trustee applies for a certificate of appointment. Since January 1, 2020, there’s no tax on the first $50,000 of estate value and $15 per $1,000 (or part of $1,000) above $50,000, converging to an effective 1.5% on large estates. The fee applies to assets that form part of the estate for probate purposes, not to assets that pass outside the estate by operation of law or contract.

• Included: real property in Ontario, bank accounts held solely in the deceased’s name, investment accounts without a named beneficiary, personal property, and business interests.
• Excluded: jointly held property with right of survivorship, insurance policies and registered accounts with designated beneficiaries, and assets held in trust.

“If you apply for an estate certificate on or after January 1, 2020: You do not need to pay Estate Administration Tax if the value of the estate is $50,000 or less.” Ontario Ministry of Finance, Estate Administration Tax

The math is straightforward. A $500,000 estate pays nothing on the first $50,000 and $6,750 on the remaining $450,000, totalling $6,750. A $1 million estate pays about $14,250. A $3 million estate pays about $44,250. And a $5 million estate, which is common when Ontario real estate is involved, pays roughly $74,250.

Since 2015, the estate trustee must also file an Estate Information Return (Form 9844) with the Ministry of Finance within 90 days after the certificate of appointment is issued. The return requires a detailed listing of every asset and its value. The ministry can (and does) audit these returns, and understatement of estate value carries penalties.

Why are Ontario’s fees the highest in Canada?

Ontario’s 1.5% rate on amounts over $50,000 competes only with Nova Scotia’s 1.695% for the highest probate fee in Canada. BC is close at 1.4% above $50,000. Alberta caps its fee at $525 regardless of estate size, and Quebec charges nothing for notarial wills. A $2 million estate pays roughly $29,000 in Ontario, $525 in Alberta, and nothing in Quebec.

• This disparity is why probate avoidance planning concentrates in Ontario and BC. The savings justify the cost and complexity of avoidance structures.
• In Alberta, probate avoidance is rarely worth the effort.

What are multiple wills and how do they work?

The multiple wills strategy is Ontario’s signature probate-avoidance technique. It works because certain assets do not require a certificate of appointment for the estate trustee to deal with them. A “primary” will covers assets that require probate (real estate, publicly traded securities, bank accounts), while a “secondary” will covers assets that do not (private company shares, personal effects, loans receivable from private entities, certain partnership interests). Only the primary will goes to court.

• The Ontario Court of Appeal confirmed the validity of multiple wills in Granovsky Estate v. Ontario, and the technique is widely used by estate planning lawyers in the province.
• Each will must be properly executed, must clearly define which assets it governs, and must not revoke the other (a standard revocation clause in the primary will can accidentally destroy the secondary will if not carefully drafted).

The savings depend on the value of assets in the secondary will. If a business owner holds $3 million in private company shares, moving those shares to a secondary will saves approximately $44,250 in probate fees (the 1.5% that would otherwise apply). For business owners with substantial private company holdings, this is often the single most effective probate-avoidance technique.

Can an alter ego trust avoid Ontario probate?

Yes. An alter ego trust (available to individuals 65 or older) lets the settlor transfer assets into the trust during their lifetime while retaining full use and benefit. On death, the trust assets pass to beneficiaries without going through the estate, so no probate fee applies.

• Canada permits the transfer on a tax-deferred basis under ITA 73(1.01). The settlor is taxed on the trust’s income during their lifetime, and the deemed disposition occurs at death, not at transfer.
• The settlor must be 65 or older at creation, must be entitled to all income during their lifetime, and no one else can receive capital during the settlor’s lifetime.

A joint partner trust works the same way for couples (one partner must be 65 or older). The surviving partner retains use of the trust assets, and the deemed disposition is deferred until the second death.

The cost of establishing and maintaining an alter ego trust (legal fees, annual tax filings for the trust) typically runs $3,000 to $5,000 upfront and $1,500 to $3,000 annually. The breakeven point depends on estate size, but for estates above roughly $500,000, the probate savings exceed the costs over a reasonable time horizon. For the differences between trust structures, see the comparison of revocable vs. irrevocable trusts in Canada.

Do beneficiary designations bypass probate?

Yes, and they are the simplest mechanism available. When you name a beneficiary on an RRSP, RRIF, TFSA, or life insurance policy, the asset passes by contract on death, never entering the estate and never attracting probate fees. Naming a spouse on a registered account also produces a tax rollover (no income inclusion on the terminal return).

• Life insurance with a named beneficiary is doubly efficient: the death benefit bypasses probate and is received tax-free. Many plans use insurance to provide liquidity so the estate can pay the deemed-disposition tax without a fire sale.
• The limitation is that beneficiary designations work only for assets that accept them. Bank accounts, brokerage accounts holding individual stocks, and real property need one of the other strategies.

Does joint ownership avoid probate fees?

Joint ownership with right of survivorship passes assets directly to the surviving owner on death, outside of probate. Between spouses, the strategy works cleanly: the family home or joint bank account transfers by operation of law, no certificate of appointment is needed, and no probate fee is payable.

• Between a parent and an adult child, it is more complicated. Adding a child to title may trigger a deemed disposition of 50% if CRA treats the transfer as a change in beneficial ownership, and Pecore v. Pecore (2007 SCC) created a presumption that the adult child holds the asset beneficially, not as trustee.
• Joint ownership also exposes the asset to the child’s creditors, matrimonial claims on divorce, and loss of the principal residence exemption if the child already owns a home.
• For real property, a family trust is often a safer route, though it carries its own 21-year deemed disposition cycle and annual filing obligations.

How does US estate tax affect Ontario residents?

This is where probate planning gets more complex. The US imposes an estate tax on US citizens and residents (worldwide assets, $15 million exemption for 2026) and on non-resident non-citizens with US-situs assets ($60,000 exemption under IRC 2101). US-situs assets include US real estate, US corporate shares (including US-listed ETFs), tangible property in the US, and certain US debt obligations.

• A Canadian resident who owns a Florida condo, a US brokerage account with Apple and Microsoft shares, or US-listed ETFs has US-situs assets subject to the $60,000 exemption.

The $60,000 exemption is deceptively small. It’s not $60,000 of gain; it’s $60,000 of fair market value. A Canadian who owns $500,000 of US stocks and a $400,000 Florida condo has $900,000 of US-situs assets. After the $60,000 exemption, $840,000 is potentially subject to US estate tax at rates that start at 18% and reach 40%. Without treaty relief, the tax on $840,000 would be approximately $275,000.

The Canada-US Tax Treaty, Article XXIX-B provides the relief mechanism. Paragraph 2 grants a Canadian resident an expanded unified credit that’s proportional to the ratio of US-situs assets to worldwide assets. Instead of the $60,000 exemption (which corresponds to a credit of $13,000), the treaty gives a credit equal to the full US citizen’s unified credit ($15 million equivalent) multiplied by the fraction (US-situs assets / worldwide assets). For a Canadian whose US assets represent 20% of their worldwide estate, the effective exemption is 20% of $15 million, or $3 million. This eliminates the US estate tax for most Canadians, but it requires filing Form 706-NA to claim the credit.

For a deeper treatment of the $60,000 exemption and the treaty mechanism, see the dedicated guide on US estate tax for Canadians.

Does probate avoidance in Ontario reduce US tax?

Not directly, and in some cases the structures create new US problems. Ontario’s probate fee is a provincial charge triggered by the certificate of appointment process. US estate tax is a federal transfer tax on property owned at death. The US does not care whether the asset went through Ontario probate: a Florida condo in an alter ego trust is still US-situs real property under IRC 2104.

• An alter ego trust is a foreign trust for US purposes. If the settlor is a US person, the trust triggers annual Form 3520-A reporting. Even for non-US settlors, the trust assets remain in the US gross estate under IRC 2036(a)(1) because the settlor retained beneficial enjoyment. The cross-border estate planning guide covers how these structures interact with US rules.
• Joint ownership between spouses can produce US complications when one spouse is a US citizen and the other is not: the “qualified joint interest” rules under IRC 2040(b) do not apply, so the entire value may be included in the estate of the first to die.
• Do not assume that a structure designed for Ontario probate avoidance automatically helps (or is neutral) for US estate tax. The two analyses need to happen together.

What about the Form 706-NA filing requirement?

Form 706-NA is required when a non-resident non-citizen dies owning US-situs assets and the estate wants to claim the treaty-based expanded credit under Article XXIX-B. The form is due nine months after death (six-month extension available) and requires disclosure of worldwide assets, because the treaty credit is based on the ratio of US-situs assets to worldwide assets.

• Many estates miss this filing because the family does not realize the obligation exists or assumes the treaty relief is automatic. It is not: the credit must be claimed on a timely filed return.
• If the filing is missed, there is no statute of limitations on assessment. The estate may owe tax that could have been eliminated entirely. The cost of preparing Form 706-NA ($2,000 to $5,000) is modest compared to the exposure.

Which strategy works best for your situation?

There is no single answer. The right combination depends on the types of assets in the estate, family structure, whether there is a US connection, and the cost of implementing and maintaining each strategy. Multiple wills are the most cost-effective option for business owners with private company shares ($2,000 to $4,000 more than a single will, no ongoing cost), but they work only for assets that do not require a certificate of appointment.

• Alter ego and joint partner trusts are broader (they hold any asset, including real property and public market investments) but more expensive. They make sense for diversified estates above roughly $1 million where cumulative probate savings exceed the setup and maintenance costs. The 65-and-older requirement limits when you can implement them.
• Beneficiary designations should be reviewed in every estate plan. They are free, immediate, and produce both probate avoidance and (for registered accounts) income tax deferral when a spouse is the beneficiary.
• Joint ownership works well between spouses for the family home but carries risks with children or non-spousal co-owners (deemed disposition, creditor exposure, loss of principal residence exemption).
• For anyone with a US connection, the planning must account for both systems. A structure that saves $30,000 in Ontario probate but creates a $5,000-per-year US trust reporting obligation may not be a net win, and any plan involving US-situs assets needs Form 706-NA to claim the treaty credit.

The table below summarizes the tradeoffs:

Strategy	Assets covered	Upfront cost	Annual cost	US complications
Multiple wills	Private co. shares, personal property	$2,000-$4,000	None	None
Alter ego trust	Any asset	$3,000-$5,000	$1,500-$3,000	Foreign trust reporting if US person involved
Joint partner trust	Any asset (couples)	$3,000-$5,000	$1,500-$3,000	Same as alter ego
Beneficiary designations	RRSPs, RRIFs, TFSAs, insurance	Free	None	None (for Canadian-situs accounts)
Joint ownership (spouse)	Real property, bank accounts	Minimal	None	IRC 2040 issues if one spouse is US citizen

Where should you start?

If your Ontario estate is large enough that 1.5% is a meaningful number, start with the low-cost moves: review every beneficiary designation on every registered account and insurance policy, and if you own a private company, ask your estate lawyer about a secondary will.

• If you are 65 or older and hold a diversified portfolio above $1 million, an alter ego trust or joint partner trust deserves a serious look. The annual cost is real, but on a $2 million portfolio the probate savings are roughly $29,000.

• If you have any US connection, do not plan in one country at a time. The cost of unwinding a structure that is optimal for Ontario probate but creates US tax problems is always higher than getting the cross-border analysis right from the start.

• Family trusts in Canada, the trust structure used for estate planning and the 21-year rule

• Inheritance tax in Canada: what heirs actually pay, the deemed disposition and how probate fees fit the bigger picture

• Cross-border estate planning: freezes, alter ego, and bypass trusts, advanced planning when both countries are in play

• Revocable vs. irrevocable trusts in Canada, comparing trust types for estate planning

• US estate tax for Canadians: the $60,000 exemption, the treaty mechanism and Form 706-NA

• Joint tenancy (JTWROS) across the border, the gift tax and estate tax traps in joint ownership when a US person is on title

• Do I need two wills?, separating the Canadian and US wills to avoid cross-border probate delays

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.