When an individual dies, his or her will is typically probated
through the Ontario Superior Court to enable the executors to
effectively administer the estate. Ontario law levies a tax of 1.5%
of the value of the estate when the will is probated. Unlike an
income tax which is mandatory on taxable income earned in a year,
the probate process, although pragmatically necessary for some
assets, is not required by law for all assets.
To minimize the impact of probate taxes, it has been common and
legally effective for individuals to divide their assets into two
bundles - one composed of assets which do not legally or
practically require a grant of probate, such as private company
shares, and another composed of all other assets inclusive of bank
and investment accounts which generally require a probated will for
the executors to effectively deal with those assets. Each bundle
would be governed by a separate will, but only that will dealing
with those assets needing probate
