Ontario Estate Planning: How Multiple Wills Can Help Reduce Probate Fees

When planning your estate, minimizing probate fees is a major goal. If you own shares in a privately owned corporation, a secondary will may be an effective strategy to reduce or eliminate probate fees on those assets.

However, if not drafted properly, multiple wills can create complications. Here’s what you need to know about using primary and secondary wills in estate planning:

What are multiple wills?  

This is a strategy where an individual creates:

• A primary will – covering assets that require probate (e.g. real estate, bank accounts).
• A secondary will – covering assets which may be excluded from probate, such as private corporation shares, personal loans, and jointly held assets.

Legal precedent: Granovsky Estate v Ontario  

In Granovsky Estate v. Ontario, 1998 CanLII 14913, the Court highlighted instances when an individual may need a secondary will. In this case, the government unsuccessfully attempted to oppose the development of secondary wills and their use to reduce probate fees payable to the government. This case is over 25 years old but is still useful law for estate planning practitioners today. Fortunately for testators, secondary wills can still be used as a tool to pay less probate fees.

Considerations when using multiple wills  

It is vital that both wills be drafted properly, using clear and precise language. For this reason, it’s important to work with an experienced estate planning professional to ensure compliance with all legal requirements.

Protect your estate today  

If you have a private corporation and don’t yet have a will in place to address the shares of your corporation, now is the time to act. A properly structured estate plan can ensure your assets are protected and may save your beneficiaries significant probate fees.

Contact us today to discuss the best option for your estate planning needs.