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What is probate, and how do I keep my family from paying it?
What goes through probate
Anything owned in your name alone with no designated beneficiary: a house in your sole name, bank and investment accounts, vehicles, personal property.
What skips it
- Life insurance with a named beneficiary
- RRSPs, RRIFs and TFSAs with a named beneficiary or successor holder
- Property owned jointly with right of survivorship (with care; joint ownership has its own risks)
- Assets held in certain trusts
Why it matters beyond the fee
Probate takes time, often several months, during which the estate's accounts are frozen. A family living on one income can't wait that long. Life insurance paid directly to a spouse arrives in weeks, which is one reason it's the foundation of family protection.
Simple steps
- Name beneficiaries on every registered account and insurance policy, and check them after any life change
- Name your spouse as successor holder (not just beneficiary) on your TFSA so it stays tax-free in their hands
- Have a current will so the probated portion moves quickly
- Talk to a lawyer before adding adult children as joint owners; it can create tax and legal problems
What we do
Every plan we build includes a beneficiary review across all accounts and policies. It's the five-minute task that most often saves families the most money and stress.
Want this worked out for your numbers? We'll build a plan for your family that covers the risks, the savings and the goals, and show you what to do first.