MULTIPLE WILLS

As a business owner or as a professional, years of hard work require a smart estate planning.

Traditionally, people are used to the idea of preparing their Will and review it, as necessary, to meet their life changes as they occur. However, the idea of using multiple wills – a Primary Will or a Secondary Will – may not be as widely known as it should, notwithstanding it is one of the most effective estate planning strategies available in our province.

How do Multiple Wills work?

A Primary Will, also known as Probate Will, is the Will presented to the court in order to confirm the authority of the executor by granting him or her the executor letters of probate. A probated will is required to transfer real estate and personal property such as investment and bank accounts and other financial assets to the beneficiaries of the estate. In order to transfer these assets, a purchaser of real estate or a financial institution will require proof of the executors’ authority to act.
A Secondary Will, also known as Non-Probate Will, is the Will that governs other assets such as real estate registered jointly with right of survivorship, personal effects, including jewelry, furniture and artwork and other assets that have a designated beneficiary, such as RRSP investments or life insurance policies.

Shares of privately held corporations can be dealt with the approval of the company’s directors and therefore, do not require probate and are not subject to the Estate Administration Tax.

Advantages to avoiding the probate process

• Privacy – Once a grant of probate is granted by the court, the probated will becomes a public document;
• Saving on probate fees – Where no probate is required, no estate Administration Tax is paid;
  Probate fees in Ontario (Estate Administration Tax) are:
  $5 for each $1,000, or part thereof, of the first $50,000 of the value of the estate, and
  $15 for each $1,000, or part thereof, of the value of the estate exceeding $50,000.

How do multiple wills work?

In any event, it is imperative that your situation is carefully considered by your trusted professionals – lawyers and accountants – to determine the best estate planning strategies for you.

If you have any questions, or if you wish to know more about this topic, contact us. We are here to help.