
Toronto Estate Planning and Probate: Experts teach you how to make a valid will and pass it through probate smoothly
I. Process of probate
- Document Collection and Application Submission
The executor needs to collect the original will, death certificate, asset list and other materials, and submit an application for probate to the Ontario Superior Court. - Court Review and Authorization
After reviewing the documents, the court will issue a “Power of Attorney for Inheritance” to confirm the legal qualifications of the executor. This stage usually takes 12-18 months. - Asset Liquidation and Debt Payment
The executor needs to inventory all estate assets (including real estate, financial accounts, etc.) and prioritize paying outstanding debts, taxes, and funeral expenses. - Distribution of Remaining Assets
After the debts are paid off, the remaining assets will be distributed to the beneficiaries according to the will or statutory inheritance order.
II. Details of main expenses
i. Government expenses
- Probate Fee
Ontario adopts a tiered fee rate:- No fee for up to $50,000
- The portion exceeding 50,000 is charged at 1.5% (for example, a 1 million estate requires a tax of 14,250).
- Executor’s fees
Usually 2.5%-5% of the total value of the estate (when executed by a professional organization or lawyer). - Lawyer Fees
Hourly fee is approximately $200/hour, or 3%-6% of the total value of the estate. - Accounting Fees Tax settlement and financial audit fees are approximately $250/hour.
III. Tax considerations
- Final Tax Return
You need to report the last personal income tax (Final Tax) of the deceased to the Canada Revenue Agency, including unreported income and capital gains. - Capital Gains Tax
Inherited assets (such as real estate and stocks) are taxed at 50% of the difference between their market value and the purchase price (primary residence is exempt from tax).
IV. Optimization Suggestions
- Living Will Planning
Part of the estate certification process can be avoided by setting up a living trust. - Asset Diversification
Joint accounts and insurance policies with designated beneficiaries (such as TFSA, RRSP) are exempt from probate. - Interprovincial asset handling If you hold assets in other provinces (such as real estate in Alberta), you must pay a certification fee according to local standards (such as Alberta A unified fee of 5% for assets above $250,000).
V. Dispute Resolution Mechanism
- Objection to the validity of a will The beneficiary can apply to the court for a review of the validity of the will, with a fee of approximately 200-300 per time
- Inheritance rights dispute litigation
Litigation fees are charged in tiers according to the subject amount:
- For cases below 40,000 Canadian dollars, direct litigation is recommended.
- For cases between 40,000 and 260,000 Canadian dollars, it is recommended that notarial mediation procedures be given priority.
JZW Law has a team of experienced high net worth divorce lawyers. Fluent in both Chinese and English, we are committed to providing professional legal services to high net worth individuals in Toronto. We specialize in handling complex issues related to property division, business ownership, trusts, overseas assets and more. We offer a free initial consultation and welcome you to contact us for more information or to schedule a consultation.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you need legal help, please consult a professional lawyer.
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