Estate Planning for Ontario Business Owners

Owning a business in Ontario adds layers of complexity to your estate. Beyond personal assets, you need to plan for private company shares, corporate property, and the future of the company itself. Without a well-structured plan, your estate could face costly probate fees, delays, and disruptions to business operations. Powerful ways to avoid these challenges is through the use of multiple Wills, intentional succession planning and choosing the right executor.

Why Multiple Wills Matter

For Ontario business owners, a single Will is often not enough. If your estate includes high-value assets like private company shares, multiple Wills can be one of the most effective ways to reduce probate fees while ensuring your business continues to operate smoothly. When properly drafted and coordinated with your corporate documents and tax planning, a multiple Will strategy helps preserve your business and simplifies administration for your loved ones.

Multiple Wills are effective because they take advantage of which assets do and do not require probate. In Ontario, probate is often required when certain assets cannot be transferred without court approval. This includes, but is not limited to, real estate registered solely in the deceased’s name, investment accounts, and some personal assets. Once probate is granted, the estate trustee is formally authorized to act, but this also triggers Estate Administration Tax, currently calculated at approximately 1.5 percent of the value of estate assets over $50,000. For larger estates, the tax can be significant. For a full breakdown of how probate works, see our blog Understanding the Probate Process in Ontario.

The good news is that not all assets need to go through probate when multiple Wills are used. Shares in a privately held corporation, for example, are often transferable without a probated Will. Some real estate may also qualify for the first dealings exemption, which allows property to pass without probate under specific circumstances. By dividing your estate into two Wills, a Primary Will for probate assets and a Secondary Will for non-probate assets, you can keep valuable business assets out of the probate process entirely.

Depending on the value of your company shares, this strategy can save your estate tens of thousands of dollars in Estate Administration Tax. For instance, if your shares are worth two million dollars, avoiding probate on that asset alone could reduce tax by over $30,000. That’s money that stays in the business or goes directly to your beneficiaries instead of the province.

To make this approach work, your Wills must be carefully drafted, and your corporate records must align with the plan. If your shareholder agreement requires a probated Will before shares can be transferred, a Secondary Will might not be effective. Reviewing your company’s legal documents and ensuring everything reflects your current wishes is a critical step.

When done correctly, multiple Wills give your estate a clear advantage: they reduce unnecessary fees, streamline administration, and protect the value of your business for the people you choose. This foundation sets the stage for a broader conversation about how your business will continue to thrive when you are no longer at the helm.

Planning for Business Succession

A strong estate plan goes beyond tax savings. You also need to consider what happens to your business when you pass away or no longer have the capacity to manage it. Who will oversee the company? Who will make decisions about its future? Will the business be sold, dissolved, or passed down to someone else?

If the business has multiple owners, you may have an agreement in place that lets the surviving partners buy out your share if you pass away. These arrangements are often backed by life insurance to ensure your estate receives immediate funds. If the business will be passed to children or another family member, you may want to consider an estate freeze. This allows you to lock in the current value of your shares, while future growth is directed to your beneficiaries, often through a family trust.

Choosing the Right Executor

Administering an estate that includes a business can be complex. Your executor may need to manage business operations temporarily, handle corporate tax matters, or oversee a sale. For these reasons, some business owners appoint more than one executor. A trusted family member may act alongside someone with financial or corporate experience. Our blog outlines considerations for choosing an executor.

If you haven’t reviewed your estate plan recently, or if you’ve never considered how probate affects your business, now is the time to start. An estate plan is also a blueprint for your business’s future. It clarifies who will carry your vision forward, protects relationships with clients and partners, and ensures that the value you have built over the years is preserved. Taking a proactive approach today can prevent uncertainty and conflict tomorrow, giving both your family and your business a clear path forward.

If you’re a business owner in Ontario, and you’re ready to reduce probate fees and protect your company, contact E is for Estates today. We’ll help you create a plan that respects your goals and preserves your legacy.

This article is intended for informational purposes only. For personalized advice tailored to your specific circumstance, please reach out to the E is for Estates team.

Erin L. Watson, B.A., JD

Lawyer & Notary Public

E is for Estates