What is a 'pour-over will' and is it used in Ontario?

A "pour-over will" is a will that directs assets from the testator's estate into an existing trust — typically a revocable inter vivos trust set up during the testator's lifetime. It is widely used in US estate planning as a mechanism to consolidate assets into a trust after death. In Ontario and the rest of Canada, the concept is less common, mainly because the rationale for it differs.

In the US, avoiding probate is a primary driver of trust-based planning, since probate costs and delays are more onerous there. In Ontario, while probate taxes (Estate Administration Tax) can be significant for large estates, trusts and pour-over wills are generally used in more targeted ways.

Ontario does allow inter vivos trusts and wills that pour assets into them, but the technical rules around such arrangements — particularly for tax purposes — require careful drafting. The Canada Revenue Agency's attribution and trust rules affect how assets transferred into a trust are treated for income tax purposes.

If you are interested in using a trust as part of your estate plan, working with both a lawyer and an accountant is essential. A will alone, paired with beneficiary designations on registered accounts, often achieves the same goals more simply.