Probate

Why probate exists

When someone dies, their will names an executor (in Québec, a liquidator) to gather the assets, pay the debts and distribute what remains. The problem: a bank employee or land registry clerk has no way of knowing whether the document in the executor's hands is the real, most recent will, or whether the person holding it truly has authority. Probate solves that. A court reviews the will, confirms it is valid, and issues a grant that officially confirms the executor's appointment.

That court paper is what institutions rely on. Banks and brokerages will often release small balances against a signed indemnity, but for larger accounts, for real estate registered in the deceased's name alone, or for anything with a hint of dispute, they want probate before releasing a dollar. One boundary worth knowing: probate only deals with what happens after death. While you are alive but incapable, a power of attorney governs your affairs, and it ends at the moment of death.

What probate costs, province by province

Probate fees are set provincially and vary enormously. Ontario calls its version the Estate Administration Tax. Here is the landscape (as of July 2026):

What passes outside probate

Probate fees apply to the assets that flow through the estate, not to everything you owned. Several categories pass directly to a person and never touch the estate:

• Assets with a named beneficiary. Life insurance proceeds, and registered accounts such as RRSPs, RRIFs and TFSAs with a beneficiary designation on file, are paid straight to the named person. The exception is Québec, where designations made on account forms are generally not recognized, so these accounts pass through the will instead.
• Jointly held assets with right of survivorship. In the common-law provinces, a home or bank account held in joint tenancy passes automatically to the surviving owner, outside the estate. Québec civil law has no joint tenancy with right of survivorship: a co-owner's share belongs to their estate, so this technique does not work there.
• Insurance-based investments. Segregated funds and other insurance contracts with a named beneficiary pay out directly, quickly and privately, outside the estate.

Probate fees are not income tax

Keep the two bills at death separate in your mind. Probate fees are a provincial charge for the court process, at most about 1.7% of the estate. Income tax at death is a different and usually much larger matter: the deceased is deemed to have sold most property at fair market value the moment before death, which can trigger capital gains tax on a lifetime of growth in cottages, rental properties and investment accounts. Avoiding probate on an asset does nothing to avoid the income tax on it. The two systems operate independently.

Reducing probate fees, carefully

In the percentage provinces, a few well-worn moves shrink the part of the estate that passes through probate:

• Beneficiary designations. Keeping designations current on life insurance and registered accounts is free and effective outside Québec. For a TFSA, naming your spouse as successor holder is stronger still: the account itself carries on tax-free.
• Joint ownership, with caution. Adding an adult child as joint owner of a house or account avoids probate but carries real costs: you give up sole control, the asset becomes exposed to the child's creditors and marital claims, and courts regularly hear disputes over whether a joint account was a true gift or a mere convenience. A modest probate saving can turn into expensive litigation.
• Multiple wills. Ontario business owners commonly sign a second will covering private company shares, which can then pass without probate.
• A notarial will in Québec. For Québec residents, a will signed before a notary skips court verification entirely, which is the simplest probate planning in the country.