A recent decision of the Ontario Superior Court of Justice known
as "Re Milne" may affect planning you have put in place
to reduce the Estate Administration Tax ("probate
tax").
Where a person has multiple Wills – often referred to as
Primary and Secondary Wills – prepared in order to reduce
probate tax, the decision may put the planning in jeopardy. While
the decision did not invalidate the concept of multiple Wills, it
found that the particular wording in the Wills before the Court
invalidated the Primary Will because of the manner in which the
assets covered by that Will were defined. It is not clear whether
this case will affect the validity of all types of multiple
Wills.
While the decision is being appealed, it is not likely to be
heard for some time.
