If you have set up a dental corporation, consider discussing a corporate will with an Ontario estates lawyer. Sometimes called a secondary or restricted will, it can form part of a broader estate plan.
Why consider a secondary will?
- Estate Administration Tax: certain assets dealt with under a properly structured secondary will may not need to be included in a probate application. This can affect the value on which Estate Administration Tax is payable. It does not mean every corporate asset automatically avoids probate or tax.
- Timing and administration: where the relevant assets can be administered without a probate certificate, a secondary will may help reduce delays. Probate timing varies, and an executor may need to plan for estate expenses while an application is processed.
- Separating assets: a lawyer can help determine which assets belong under your primary will and which can appropriately be addressed under a secondary will.
- Business continuity: coordinated estate and corporate documents may help those responsible for the business deal with shares and ongoing operations after a death.
Understanding the tax example
For Ontario estate-certificate applications under the current rules, no Estate Administration Tax is payable on the first $50,000 of the estate value, and $15 is payable per $1,000 or part of $1,000 above that amount. A taxable estate valued at exactly $1,000,000 would therefore attract $14,250. Any reduction from using multiple wills depends on the assets, total estate value and legal requirements.
Review Ontario’s Estate Administration Tax rules (opens in a new tab) ↗
Plan the next conversation
Our team can discuss how financial and estate planning priorities connect. An Ontario lawyer should advise on, draft and review the wills and the assets they cover. Contact us to arrange a conversation, including a virtual meeting.