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When you die, your executor may need a court certificate, called probate, before banks and other institutions will release assets held in your name. Ontario charges estate administration tax on the value of the estate covered by that certificate, the process is public, and it can take months.
Not everything has to go through it. Life insurance, segregated fund contracts and registered accounts with a valid beneficiary designation, naming someone other than your estate, can pass outside the estate and are not included in the value used to calculate the tax.
The short answer
Who receives the money, when they receive it, and who pays the tax must work together. Where probate is required, Ontario charges $15 for every $1,000, or part thereof, of estate value above $50,000. Eligible assets with a valid beneficiary designation can pass outside the estate and are not included. A beneficiary review checks that each asset reaches the right person and that the related tax has been planned for.
1.5%
is the tax Ontario charges on estate value above $50,000 where probate is required, according to the Government of Ontario.
If a $1 million home and $500,000 of investments are fully included in the estate value subject to probate, Ontario’s estate administration tax would be $21,750, before legal fees and executor compensation. This example assumes no deductible mortgage on the home.
If the $500,000 were instead held in eligible accounts or contracts with valid beneficiary designations that pass outside the estate, the probate tax could be reduced by $7,500. Income tax may still apply.
Through your will. Assets held in your name alone generally form part of your estate and may require probate before they can be transferred.
By naming a beneficiary. Life insurance, segregated fund contracts and registered accounts such as RRSPs, RRIFs and TFSAs can name a beneficiary. Proceeds payable under a valid beneficiary designation naming someone other than your estate can generally be paid without waiting for probate, subject to the institution’s requirements and any disputes. They are generally excluded from the estate value used to calculate probate tax.
By owning jointly. Some property passes to a surviving joint owner. Whether that suits your family is a legal question, especially if you are thinking of adding an adult child to your home or accounts.
01
A conversation about your family, what you own and who you want to receive it. No forms and no product discussion.
02
We list every account and policy, how it is owned and who it names.
03
We estimate your probate tax exposure, identify assets that may require probate, and review whether your estate will have enough accessible money to meet its obligations.
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Beneficiary updates and, where they fit, insurance or segregated funds, coordinated with your lawyer.
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We recommend reviewing your designations after a marriage, separation, birth or death in the family, and help update the plan when circumstances change.
No. A valid beneficiary designation can allow an eligible asset to pass outside your estate and avoid probate tax on that asset. It does not necessarily eliminate income tax.
RRSP and RRIF values are generally included in income on the deceased’s final return, although qualifying transfers to a spouse, common-law partner or certain financially dependent children or grandchildren may provide tax relief. The beneficiary may also be liable for the related tax. We review both who receives the money and how that tax will be paid.
It depends on your estate plan. Naming your estate generally brings the money back into the estate, where probate tax may apply. In some plans that is intentional, so make the decision with your lawyer before changing a designation.
Whenever your family changes: a marriage, a separation, a birth or a death. Review them also when you open a new account or policy, because each one carries its own designation.
The first call and a preliminary estate tax estimate are both complimentary. You leave knowing what may require probate, what it could cost, and how the tax will be paid.
General educational information. Legal, tax and insurance decisions require advice appropriate to your circumstances.
Eagle Wealth Partners
Preserve Wealth. Protect Legacy.
Serving families and business owners across Ontario. Markham, in person and online.
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Sami Majdalani is a licensed life and accident and sickness insurance agent in Ontario. Verify my licence on FSRA’s website. Insurance and segregated fund contracts are placed through HUB Financial, a managing general agency. Eagle Wealth Partners is paid by commission from the insurers whose products clients buy, and may also receive bonuses or other incentives from insurers. A full disclosure of the insurers we represent, how we are paid and any conflicts of interest is available on request.
Segregated fund contracts are individual variable insurance contracts issued by insurance companies. Any amount allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value.
Information on this site is general and is not legal, tax or insurance advice for your situation. Planning is implemented with your legal and tax professionals. © 2026 Eagle Wealth Partners Inc.
