Estate Planning – Non-Probatable Will
Estate Planning – Non-Probatable Will
In a previous post we discussed the application of Estate Administration Tax to an estate (www.lwlaw.com/estate-planning-probate-and-estate-administration-tax/ ). In Ontario, it is possible to implement planning to reduce the amount of Estate Administration Tax payable by an estate.
Certain assets may not need a probated will to be transferred to the intended beneficiaries. A common example is shares in a private company (shares that are not listed on a public stock exchange). In order to avoid Estate Administration Tax on these assets, you can prepare a separate will, so you will have two wills – one dealing with your assets requiring probate, and one dealing with your assets that don’t require probate.
On your death, only your will requiring probate will be provided to the court, and the Estate Administration Tax will only apply to the assets dealt with in that will. As a result, you will be able to avoid the Estate Administration Tax on your assets that do not require probate, and reduce the overall tax burden on your estate.
Please note that while Estate Administration Tax can be reduced by using multiple wills, having multiple wills does not reduce the amount of income tax that may be payable by your estate.
If you would like to discuss your estate plan with one of our lawyers, please contact us.
By: LaBarge Weinstein’s Taxation, Tax Planning, and Tax Litigation team.
This blog post is intended to provide general information and does not constitute legal advice. You should consult a lawyer for advice regarding your individual situation.
Every effort has been made to ensure the contents of the blog post were accurate as of the date it was written, however, the law can change and we cannot guarantee that the information remains accurate. In addition, because the comments above are of a general nature, they may not apply for every situation. If you have questions, please contact us and we would be happy to discuss your individual circumstances, and whether there have been any changes to the law that would affect the information presented.
