What are probate fees and how do they influence estate planning in Canada?

• A. Probate fees are uniform nationwide and create a federal estate tax.
• B. Probate fees vary by province; Canada has no broad estate tax, but deemed disposition at death can trigger taxes; planning can mitigate by use of designations, joint ownership, or trusts.
• C. Probate fees are a flat rate of 5% of assets across Canada.
• D. Probate has no impact on estate planning and costs nothing.

Answer: (B)

Probate fees in Canada vary by province and can be a meaningful consideration in estate planning. There is no broad federal estate tax in Canada, but when someone dies, assets can be treated as disposed for tax purposes, which may trigger taxes on capital gains at death. Because probate fees depend on where you live and the value of the estate being probated, planning often focuses on transferring assets in ways that pass outside probate. Using beneficiary designations, holding assets jointly with right of survivorship, or setting up trusts are common ways to minimize probate costs and control tax outcomes. This combination—province-specific probate costs, no nationwide estate tax, and the potential tax implications at death—drives how you structure an estate.