When it comes to estate planning, most people are familiar with the concept of having a Will—a legal document that outlines your wishes for how your assets should be distributed after your death. However, fewer people know that in Ontario, it is possible to create multiple Wills, also known as primary and secondary Wills. This strategy can help streamline the estate administration process and reduce probate fees, especially for individuals with significant assets. Let’s explore how secondary Wills work and why they might be right for you.

WHAT IS A SECONDARY WILL?

A secondary Will is a legal document that works alongside your primary Will. The key difference between the two is that they cover different categories of assets. In Ontario, not all assets are subject to probate fees—a tax paid to the court to validate your Will.

A primary Will typically covers assets that require probate, such as bank accounts, real estate and investments. A secondary Will, on the other hand, is designed to cover assets that do not need probate to be transferred to beneficiaries. These assets might include:

· Private company shares

· Art collections

· Jewelry

· Shares in family trusts

· Loans receivable

The goal of a secondary Will is to separate assets that can avoid the probate process, potentially saving your estate substantial probate fees.

KEY BENEFITS OF SECONDARY WILLS

MINIMIZING PROBATE FEES

One of the primary reasons for using a secondary Will is to reduce probate fees. In Ontario, probate fees are charged at a rate of approximately 1.5% of the value of your estate. While this might not seem like much, it can quickly add up if your estate includes significant assets.

By placing assets that don’t require probate in a secondary Will, your estate can avoid the probate process for these assets, effectively reducing the overall probate fees.

MAINTAINING PRIVACY

When a Will goes through probate, it becomes a public record, meaning anyone can access it. For individuals with private assets, such as shares in a family business, the contents of a will might reveal sensitive information.

Using a secondary Will helps maintain privacy because assets covered by the secondary Will do not go through probate, and therefore, the Will does not become a public document. This can be particularly beneficial for business owners who want to keep their business affairs confidential.

SIMPLIFYING ASSET DISTRIBUTION

A secondary Will can simplify the process of distributing assets that don’t need to go through probate. This helps to speed up the administration of your estate, ensuring that your beneficiaries receive these assets more quickly and without unnecessary legal delays.

PROVIDING FLEXIBILITY FOR COMPLEX ESTATES

For individuals with complex estates, multiple Wills offer greater flexibility. A secondary Will allows you to handle assets differently based on their nature and the probate requirements. This can be especially beneficial for those with private companies, large personal collections, or other non-liquid assets.

WHO SHOULD CONSIDER SECONDARY WILLS?

BUSINESS OWNERS

If you own a private corporation or shares in a business, a secondary Will can help ensure that your company is not tied up in the probate process, allowing for a smoother transition.

HIGH NET-WORTH INDIVIDUALS

Individuals with significant personal assets—art collections, jewelry, or real estate investments—can benefit from the cost savings and flexibility offered by secondary Wills.

THOSE SEEKING TO PROTECT PRIVACY

If you prefer to keep certain assets out of the public eye, a secondary Will provides a layer of privacy that is not available with a single Will that goes through probate.

CONCLUSION

A secondary Will can be a valuable estate planning tool for individuals with significant or complex assets in Ontario. By minimizing probate fees, maintaining privacy, and simplifying the distribution of certain assets, multiple Wills offer an effective way to ensure your estate is managed according to your wishes while reducing unnecessary costs.

If you think a secondary Will might be right for your estate plan, contact Douglas Law Firm for free consultation. Our experienced estate planning lawyers can guide you through the process, ensuring that your assets are protected and your loved ones are cared for.