Editing How to Avoid Probate in Canada



Probate is a legal process that validates a deceased person's will and distributes their assets according to their wishes. In Canada, probate can be time-consuming, costly, and public. As a result, many people want to avoid probate if possible. Here are some ways to do so:

1. Joint ownership: One way to avoid probate is by owning assets jointly with another person. When one owner dies, the assets automatically pass to the surviving owner without going through probate.

2. Naming beneficiaries: Another way to avoid probate is by naming beneficiaries for your assets. For example, you can name a beneficiary for your life insurance policy, your registered retirement savings plan (RRSP), or your tax-free savings account (TFSA). When you die, the assets will pass directly to the named beneficiaries without going through probate.

3. Creating a trust: A trust is a legal entity that holds assets for the benefit of a person or group of people. By creating a trust, you can transfer your assets into the trust, which can then distribute them to your beneficiaries after your death. Trusts can be complex, so it is important to work with a lawyer to set one up.

4. Giving away assets before death: Another way to avoid probate is by giving away assets before you die. However, this can have tax implications, so it is important to consult with a tax professional before doing so.

5. Making a joint bank account with the right of survivorship: Similar to joint ownership, if you make a joint bank account with the right of survivorship, it would automatically go to the other person upon your death without going through probate.

6. Small Estate Probate: For estates with a total value of $50,000 or less, many Canadian provinces offer simplified probate procedures or even completely waive the need for probate. 

It is important to note that the best way to avoid probate will depend on your specific situation and needs. It is recommended to consult with a lawyer or financial advisor to discuss your options and determine the best approach for you.