How a Trust Can Save Your Estate Thousands

Keep More, Lose Less: How Trusts Save Your Estate from Taxes and Delays 

For many successful individuals in Ontario, building wealth is only part of the journey. Protecting it, passing it on, and doing so with minimal tax exposure is the next. One of the most powerful tools available to high-net-worth families is the inter vivos trust particularly an Alter Ego or Joint Partner Trust.

This article breaks down how a properly structured trust can defer capital gains taxes, avoid probate fees, and provide lasting control over how your assets are passed on. If you're thinking long-term, this is planning worth considering.

What Is a Trust and Why Should You Care?

Think of a trust as a legal container. You transfer assets into it, and a trustee manages those assets for the benefit of your chosen beneficiaries, like your children. While it sounds technical, the benefits are very real.

When someone passes away, assets in their personal name typically go through probate. In Ontario, that means paying estate administration tax roughly 1.5% on anything over $50,000—plus dealing with delays and making your estate details public. But assets held in a trust don’t go through probate at all.

Real Savings in Real Numbers

Imagine you own an investment property in Ontario that’s now worth $2 million. You originally bought it for $500,000. If you pass away and it’s still in your name, your estate could be looking at about $29,250 in probate fees. And that $1.5 million in capital gains? It could result in a tax bill of over $250,000.

Now picture that same property sitting in an Alter Ego Trust. You’re still in control of it. There’s no probate on that asset. And the capital gains tax? Deferred until your passing—not triggered today. That’s time and flexibility your family can use.

With smart planning, the trust can even include tools like life insurance or staged distributions to manage the eventual tax bill more effectively.

Peace of Mind and Control

More than just tax efficiency, a trust gives you peace of mind. You decide when and how your assets are passed on. You avoid court delays and keep your family’s affairs private. It’s a smart, thoughtful way to protect what you’ve built.

Thinking Ahead? Let’s Talk.

If you’re ready to explore this further, I’m here to help. I work closely with accountants and financial advisors to make sure everything is set up right—legally, strategically, and with care.

Book a free consultation today and let’s build a plan that protects everything you’ve worked so hard to create.