- Estate Administration Tax (sometimes still called "probate fees") is payable when an application for an estate certificate is made, and it is calculated on the value of the estate that…
- An inter vivos trust (a trust created and funded during your lifetime, as opposed to one created by your will) works by transferring legal ownership of the property into the trust.
- The most common way this planning fails is simple: the trust document exists, but the underlying asset — the house, the investment account, the shares — was never actually retitled into…
If you have already transferred property into a trust while you were alive, you may be wondering whether that property still counts toward Estate Administration Tax on trust assets in Ontario when you die. In most cases the answer is no — but the reason why matters, because it comes down to what Estate Administration Tax is actually calculated on, not on trusts as a category.
Understanding this distinction is useful both for people doing estate planning now and for executors trying to figure out what does and doesn't belong in a probate application.
What Estate Administration Tax Is Actually Calculated On
Estate Administration Tax (sometimes still called "probate fees") is payable when an application for an estate certificate is made, and it is calculated on the value of the estate that requires that certificate — not on the deceased's total net worth. As of mid-2026 — verify the current figures before relying on them — Ontario charges no Estate Administration Tax on the first $50,000 of estate value, and $15 per $1,000 (1.5%) on the value above that, with the estate value rounded up to the nearest $1,000.
The key word is "estate." Property that was legally transferred out of your personal ownership before death — including property placed into a properly structured trust while you were alive — is generally no longer part of your probate-able estate, so it is generally excluded from the Estate Administration Tax calculation.
Why Property Already in a Trust Generally Escapes EAT
An inter vivos trust (a trust created and funded during your lifetime, as opposed to one created by your will) works by transferring legal ownership of the property into the trust. From that point, the trustee — not you personally — holds legal title, even though you may still benefit from the property during your lifetime under common structures like an alter ego trust or a joint partner trust.
Because that property is no longer legally yours to pass on through your estate when you die, it does not require a Certificate of Appointment of Estate Trustee to transfer, and it is not counted in the value used to calculate Estate Administration Tax. This is the same underlying principle that keeps jointly held assets with survivorship rights, and registered plans with a named beneficiary, outside the EAT calculation — it is not a special exception for trusts specifically, but a consequence of the property never being an estate asset in the first place.
What Can Change This Outcome
| Situation | Generally excluded from EAT? |
|---|---|
| Property validly transferred into an alter ego or joint partner trust before death | Generally yes |
| Property still held in the deceased's own name at death | No — forms part of the probate estate |
| A trust that was never properly funded (assets never actually retitled into it) | No — the unfunded asset remains part of the estate |
| RRSPs/RRIFs/TFSAs/life insurance with a named beneficiary | Generally yes |
| Jointly held property with a genuine right of survivorship | Generally yes |
The most common way this planning fails is simple: the trust document exists, but the underlying asset — the house, the investment account, the shares — was never actually retitled into the trustee's name. A trust can only keep an asset out of the estate if that asset was genuinely transferred into it during the person's lifetime, not merely mentioned in a document.
Using a Secondary Will as a Related Strategy
Trusts are not the only planning tool aimed at reducing the portion of an estate exposed to Estate Administration Tax. Using a primary will (for assets that require probate) alongside a secondary will (for assets, such as private company shares, that generally do not require probate) is a separate, long-established Ontario technique that works on the same underlying idea: assets that do not need a Certificate of Appointment to transfer are not part of the EAT calculation.
Frequently asked questions
Do I still need to report trust assets to the government anywhere?
Trusts can carry their own separate income tax filing obligations during the settlor's lifetime and after death, distinct from the estate's own Estate Information Return. This is a tax question worth raising directly with your lawyer and accountant when the trust is set up.
Does putting an asset in trust avoid tax on the deceased's final return?
Not necessarily. Transferring property into certain trusts can itself trigger a disposition for income tax purposes, and assets remaining in a trust after death have their own tax treatment. Avoiding Estate Administration Tax and avoiding income tax are two different questions.
Can my executor find out what is and isn't part of the estate?
Yes — reviewing how each asset is legally held and titled is one of the first tasks in identifying what belongs in a probate application. This is exactly the kind of review an estate lawyer typically does before a Certificate of Appointment application is filed.
Is setting up a trust worth it just to reduce Estate Administration Tax?
It depends on the size and nature of the estate, and on goals beyond tax — such as privacy, incapacity planning, or control over how assets are managed. A lawyer can help you weigh whether the complexity and cost of a trust is proportionate to what you would actually save.
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