Estate Planning in Ontario: Wills, Trusts and Your Family

An estate plan is more than a will. It is the set of documents and decisions that settle who will manage your affairs if you cannot, who will receive your property, and how to make that as simple as possible for the people you leave behind. This page explains what goes into an estate plan in Ontario. Law Wise is based in Mississauga and serves the entire GTA and Ontario.

What an estate plan includes

• A willNames your estate trustee, your beneficiaries and, where needed, trusts for children or others.
• Powers of attorneyOne for property and one for personal care, for use if you become incapable during your lifetime.
• TrustsFor minor children, blended families, or a beneficiary who should not receive a lump sum.
• Henson trustsFor a beneficiary with a disability who receives, or may need, ODSP.
• Multiple willsFor owners of private companies and other assets that do not need probate.
• Advance care wishesYour instructions about medical treatment and care.

A plan also deals with assets that pass outside your will, which many people overlook.

Assets that do not pass under your will

• Registered plans and insurance. RRSPs, RRIFs, TFSAs, pensions and life insurance usually pass to the beneficiary named on the plan or policy. An out-of-date designation, for example one naming a former partner, can override what your will says about the rest of your estate.
• Jointly owned property. Property held as joint tenants with a right of survivorship passes to the surviving owner. See survivorship applications.
• Joint accounts with an adult child. Adding a child to an account “for convenience” often causes disputes. The Supreme Court of Canada has held that where a parent transfers property to an adult child for nothing in return, the law presumes the child holds it in trust for the parent’s estate unless the child proves a gift was intended (Pecore v Pecore, 2007 SCC 17). If you intend a gift, or do not, say so in writing.
• Property in another country. Foreign property may be governed by the law of the place where it is located and may need its own will.

Tax and probate: keeping them in proportion

Two different charges arise on death, and they are often confused. The first is Ontario’s estate administration tax, commonly called probate tax. It is paid when the court issues a certificate of appointment of estate trustee, at $15 for each $1,000, or part of $1,000, of estate value above $50,000. The second is income tax. Canada has no inheritance tax, but a person is generally treated as having sold their capital property immediately before death, so growth in the value of investments, a cottage or company shares can be taxed in the final return, and registered plans are generally brought into income unless they pass to a spouse or another qualifying beneficiary. For many families the income tax is the larger of the two. Steps taken only to save probate tax, such as putting a house into joint names with a child, can create income tax, expose the property to the child’s creditors or separation, and lead to disputes between children. A plan should be reviewed with your accountant so that the legal and tax parts fit together.

Situations that need more than a simple will

• Blended families. Providing for a spouse while making sure children from an earlier relationship inherit what is left usually requires a trust, not an outright gift.
• Young children. Without a trust, a child’s share is generally payable at 18. A will can hold it until a later age and name the person who manages it.
• A beneficiary with a disability. An outright gift can affect ODSP. See Henson trusts.
• Business owners. Shares of a private company raise questions of control, tax and probate. See multiple wills and corporate and commercial.
• A child you wish to leave out, or treat unequally. This is lawful in Ontario for independent adult children, but the reasons and the drafting need care to reduce the risk of a challenge.
• Property or family abroad. Estate trustees who live outside Ontario, and assets in other countries, add steps and cost.

How the planning process works

1. ConsultationYour first consultation is free for 15 minutes, by appointment. We identify what you need.
2. InformationYou list your family, your assets and how each is owned, and your existing designations.
3. AdviceWe explain the options and their consequences, including what passes outside the will.
4. DraftingWe prepare the will, powers of attorney and any trust provisions, and review them with you.
5. SigningYou sign with the required witnesses so that the documents are valid.
6. ReviewRevisit the plan after a marriage, separation, birth, death, move, or a major change in assets.

Your file is handled by a Law Wise lawyer licensed by the Law Society of Ontario. Service is available in English, Urdu, Punjabi and Hindi, and, if you retain the firm, fees are explained and confirmed in writing before work starts.

Common questions about estate planning

This page is general legal information for Ontario, current as of 11 October 2026. It is not legal or tax advice and does not create a lawyer-client relationship. For advice about your situation, please speak with a lawyer.