Probated Wills vs. Non-Probated Wills

           Do you want your estate settled in 2 weeks or a year?

           Do you want Lawyers and Accountants involved?

 In Ontario the difference between probated wills and not probated wills is significant. Not needing to go through probate is preferable.

· Personal residences and the contents inside need to be probated.

 · Financial products supplied by Banks and Investment firms need to be probated as they are governed by the rules of the Bank Act.

Bank mutual fund			Segregated fund
Rate of return	5%		Rate of return	5%
Market value at death	$1,628,895		Market value at death	$1,582,949
Legal fees	$2,500		Segregated fund incremental cost	0.30%
Accounting fees	$2,500		Net rate of return	4.7%
Executor fees	$32,578
Probate fees	$23,683
Total estimated fees	$61,261		Total estimated fees	$0
Income taxes	125,779		Income taxes	$116,590
Net market value at death	$1,441,854		Net market value at death	$1,466,359
			Net savings	$24,505

·       Financial products supplied by insurance companies are subject to the rules of the Insurance Act and, as long as there is a named beneficiary, are not subject to probate and pass to the named beneficiary directly.

  *Assumes a Marginal Tax Rate of 40%

Probate