What is probate and why do estates pay it?

Probate (called "estate administration" in Ontario and "estate grant" in BC) is the court process that officially validates a will and grants the executor legal authority to administer the estate. Financial institutions, land registries, and other parties require a probated will before releasing assets or transferring title. The probate fee (or estate administration tax) is charged by the province as a percentage of the estate value that passes through the probate process. The fee is paid from estate assets before distribution to beneficiaries. Not all assets require probate: named beneficiary designations (RRSP, TFSA, life insurance), jointly held property with right of survivorship, and property held in trust all pass outside probate. In provinces with high probate fees (Ontario, BC), there are significant financial incentives to structure your estate to minimize the value that flows through probate.

What are probate fees in Ontario?

Ontario charges estate administration tax at: $0 on the first $50,000 of estate value; $15 per $1,000 (1.5%) on estate value over $50,000. There is no maximum cap. Example calculations: $100,000 estate: $0 for first $50K + $750 for remaining $50K = $750. $500,000 estate: $0 + $6,750 = $6,750. $1,000,000 estate: $0 + $14,250 = $14,250. $2,000,000 estate: $0 + $29,250 = $29,250. $5,000,000 estate: $0 + $74,250 = $74,250. The estate administration tax is paid when the executor applies for a certificate of appointment of estate trustee. Over-payment is refundable; under-payment triggers penalties. Note: professional executor compensation and legal fees to administer the estate are separate and additional costs.

What are probate fees in British Columbia?

BC charges probate fees on the gross value of all estate assets located in BC: $0 for estates under $25,000; $6 per $1,000 on the next $25,000 (from $25,000–$50,000); $14 per $1,000 on all estate value over $50,000. Example calculations: $50,000 estate: $150. $200,000 estate: $150 + $2,100 = $2,250. $500,000 estate: $150 + $6,300 = $6,450. $1,000,000 estate: $150 + $13,300 = $13,450. BC also charges a probate registry fee of approximately $200 regardless of estate size. The BC Supreme Court handles probate applications in BC. As in Ontario, assets with named beneficiaries and jointly-held property escape probate.

Which provinces have the highest and lowest probate fees?

Probate fees by province (approximate for a $500,000 estate): Ontario: $6,750 (1.5% over $50K). BC: $6,450 (~1.4% over $50K). Nova Scotia: $5,003 (sliding scale up to ~1.7%). New Brunswick: $5,000 (approximately). PEI: $4,000 (approximately). Manitoba: $3,500 (~0.7%). Newfoundland: $800–$1,000 (flat fee schedule). Saskatchewan: $7,000 (approximately, includes all personal property and real estate). Alberta: maximum $525 — flat fee structure, among the lowest in Canada. Quebec: no provincial probate for notarial wills — effectively $0 for properly prepared notarial wills. NWT/Yukon/Nunavut: minimal fees. The most impactful provinces for probate planning are Ontario, BC, Nova Scotia, and Saskatchewan. Alberta and Quebec are far less burdensome.

What assets pass outside probate and avoid the fee?

Assets that bypass probate and are therefore not subject to estate administration tax: (1) Registered accounts with named beneficiaries: RRSP, RRIF, TFSA, group life insurance, individual life insurance, group pension — all pass directly to the named beneficiary without going through the estate. (2) Jointly owned property with right of survivorship: real estate held as joint tenants, joint bank accounts, jointly registered investments all transfer automatically to the surviving joint owner. (3) Assets held in an inter vivos trust (Henson Trust, alter ego trust, joint partner trust): trust assets are not estate assets — they pass per trust terms. (4) Death benefit from CPP (up to $2,500): paid directly to the estate but in many provinces processed separately. Strategy implication: naming beneficiaries on registered accounts is the simplest, most impactful probate reduction strategy available to most Canadians. A $500,000 RRIF in Ontario with a named beneficiary saves $7,500 in estate administration tax.

What is a secondary or multiple will strategy to reduce Ontario probate?

The multiple will strategy is a well-established Ontario tax planning technique for estates that include private company shares or other assets that do not require probate to transfer. How it works: (1) A primary will covers assets that require probate (real estate, bank accounts, publicly traded securities, etc.). This will is probated and the estate administration tax is paid on its value. (2) A secondary (or "secret") will covers assets that do not require probate — most commonly shares of a private company, closely held business interests, or certain personal property. This will is NOT submitted to probate. Estate administration tax is not paid on the value of the secondary will''s assets. Savings can be enormous for business owners: a small private company with $2 million in value would generate $29,250 in Ontario estate administration tax if it passed through probate. The secondary will eliminates this entirely. Legal cost to prepare two wills: $1,200–$2,500 — a fraction of the savings.

What is an alter ego trust and how does it reduce probate?

An alter ego trust (AET) is a special inter vivos trust available only to Canadians aged 65 or older. How it works: you transfer assets (typically investment portfolios, real property) into the trust during your lifetime. You are the sole beneficiary during your lifetime. After your death, assets pass to successor beneficiaries per the trust terms — completely outside probate. Characteristics: no deemed disposition on transfer into the trust (CRA rule); the trust files its own tax returns; no annual income attribution to you from the trust; 21-year rule does not apply during your lifetime. On death, all trust assets are deemed disposed of at fair market value (the trust triggers the capital gains at that point). Probate savings: because trust assets are not estate assets, they completely avoid probate on death. An AET holding $2 million in Ontario saves approximately $29,250 in probate fees at current rates. Legal cost to establish: $3,000–$7,000 — worthwhile for large estates.

Probate Fees by Province Canada 2026: Estate Administration Tax Rates

Probate fees can represent a significant percentage of your estate — particularly in Ontario and BC. The good news: several straightforward strategies can dramatically reduce or eliminate them.

Probate fees by province — complete table

Province	Fee structure	Fee on $250K estate	Fee on $1M estate
Ontario	1.5% over $50K	$3,000	$14,250
BC	1.4% over $50K	$2,800	$13,300
Nova Scotia	Sliding scale	~$2,300	~$14,965
Saskatchewan	Sliding scale	~$2,000	~$7,500
New Brunswick	Sliding scale	~$1,500	~$5,000
PEI	Sliding scale	~$1,200	~$4,500
Manitoba	~0.7%	~$1,400	~$7,000
Newfoundland	Flat fees	~$250	~$800
Alberta	Flat fee schedule	$525 (maximum)	$525 (maximum)
Quebec (notarial will)	None	$0	$0
NWT / Yukon / Nunavut	Minimal	Under $500	Under $1,000

Rates effective 2025-2026. Always verify current rates with provincial court services.

Ontario estate administration tax calculator

Estate value	Tax owing
$50,000 or under	$0
$100,000	$750
$250,000	$3,000
$500,000	$6,750
$750,000	$10,500
$1,000,000	$14,250
$2,000,000	$29,250
$5,000,000	$74,250

Formula: ($estate value − $50,000) × 1.5%

Probate reduction strategies ranked by simplicity

Strategy	Complexity	Saves probate on	Best for
Name beneficiaries on RRSP/RRIF/TFSA/insurance	Very low	Full registered account value	Everyone
Hold real estate as joint tenants	Low	Full property value	Spouses
Joint bank/investment accounts	Low	Full account value	Spouses and trusted adults
Multiple wills (primary + secondary)	Medium	Private company shares and similar assets	Business owners
Alter ego trust (65+)	High	All trust assets	High-net-worth seniors
Inter vivos gifting pre-death	Medium	Gifted amount	Anyone willing to give now

What “estate value” includes for probate purposes

Probate is assessed on the gross value of assets that:

Are in your name alone at death
Have no named beneficiary
Are not jointly held with right of survivorship
Are not in a trust

Assets that are excluded from probate value:

RRSP/RRIF/TFSA with named beneficiaries
Life insurance with named beneficiaries (not estate)
PRPP and pension with named beneficiaries
Real estate outside the province (probated in that jurisdiction)
Property held in trust
Jointly held assets (passable by survivorship)

The probate process: what the fee covers

Probate fees are paid to the provincial government when the executor applies for a Certificate of Appointment of Estate Trustee (Ontario term) or equivalent Grant of Probate (BC and most other provinces). The court reviews the will, confirms its validity, and grants the executor legal authority to act.

Why it matters: financial institutions (banks, investment brokers), land registries, and other parties will not release or transfer assets without a probated will — they need legal confirmation of who the executor is and that the will is valid. Estates where all assets either have named beneficiaries or are held jointly often require little or no probate.

Timeline: obtaining probate typically takes 4–12 weeks for a straightforward estate in most provinces. Complex estates or those with disputes can take much longer. Ontario tends to be slower than other provinces; BC has streamlined its process somewhat.

Who pays: probate fees are paid from estate assets before distribution to beneficiaries. This reduces what heirs receive, which is why probate minimization is an estate planning priority in high-fee provinces.

Detailed Ontario probate (estate administration tax) calculation

Ontario’s estate administration tax applies to the gross value of all estate assets:

Estate component	Subject to probate?
House (in your name only, no survivorship)	Yes
RRSP/RRIF with no named beneficiary	Yes
Bank accounts in your name only	Yes
Non-registered investment accounts	Yes
RRSP/RRIF with named beneficiary	No
TFSA with named beneficiary	No
Life insurance with named beneficiary	No
Jointly held property (right of survivorship)	No
Property in a trust	No

For a typical Ontario estate where a surviving spouse inherits via survivorship and registered accounts have named beneficiaries, the probated estate may be much smaller than the total net worth.

Avoiding probate: what each strategy saves

Using a $750,000 Ontario estate as an example, where $500,000 passes through probate:

Current probate cost	After named beneficiaries on RRSP ($200K)	After adding joint tenancy on home ($350K)
$10,500	$7,500 (save $3,000)	$0 (save $10,500)

In practice, most effective planning involves:

Named beneficiaries on all registered accounts (RRSP, TFSA, RRIF, life insurance) — simple, free, and highly effective
Joint tenancy with spouse on principal residence — automatic transfer on death, no probate
For business owners: secondary will for private company shares