Included and Excluded Assets for Estate Administration Tax

Not every asset in your estate is subject to the Estate Administration Tax. The amount your executor will need to pay depends on which assets require probate to access or transfer. Some pass outside of probate automatically and are not included in the tax calculation.

Understanding the difference between included and excluded assets helps you reduce unnecessary fees, structure your accounts efficiently, and support your executor with clarity.

Which Assets Are Included in the Estate Administration Tax

Included assets are those that:

Are in your name alone
Do not have a named beneficiary
Must go through probate to be transferred

These assets form the basis of the estate value used to calculate the tax.

Included Assets	Why They’re Taxed
Bank accounts (no joint owner)	Require probate for the executor to access and close
Investment portfolios in sole name	Institutions require probate to authorize transfer
Ontario real estate (not jointly owned)	Land transfer requires legal confirmation of authority
Vehicles or valuable personal items	Included when part of the estate inventory
Business shares or private holdings	Considered part of the taxable estate unless held in trust

Tip: Include the fair market value of all included assets as of the date of death. Debts are not deducted, except mortgages on real property located in Ontario.

Which Assets Are Excluded from the Tax Calculation

Excluded assets typically pass directly to someone else and do not require probate. These are not counted toward the Estate Administration Tax.

Excluded Assets	Why They’re Not Taxed
Jointly owned property (with right of survivorship)	Passes directly to the surviving owner
RRSPs, RRIFs, and TFSAs with named beneficiaries	Paid outside the estate to the designated person
Life insurance with a named beneficiary	Proceeds bypass the estate and go directly to the beneficiary
Registered pensions or death benefits	Often paid under plan rules outside probate
Trust-held assets	Controlled by the terms of the trust, not the estate

Important: If a named beneficiary has died or the designation is missing, the asset may revert to the estate and become taxable. Review designations regularly to avoid unintended exposure.

How to Determine Which Assets May Require Probate

Not all accounts are clearly labeled as included or excluded. Some institutions may still require probate even for small or straightforward holdings, especially if internal policies are strict.

Key questions to ask:

Is the asset in my name only?
Is there a valid and current beneficiary listed?
Does the financial institution require a Certificate of Appointment?
Is the asset located in Ontario and not held jointly?

Planning with these questions in mind helps reduce complexity and avoid last-minute surprises.

How Optimize Helps You Reduce Probate Exposure

At Optimize, we help you look at your estate not just as a list of assets—but as a financial ecosystem. We guide you in identifying which assets are probate-exposed and explore strategies to shift them into non-probate categories where appropriate.

This includes:

Reviewing ownership structures and designations
Suggesting asset transfers or beneficiary updates
Exploring trust options for complex holdings
Aligning your Will and asset setup with probate realities

We make sure your estate plan works the way you intended—efficiently and cost-effectively.

Why Structuring Your Estate Wisely Preserves More of Your Legacy

Every dollar that goes to unnecessary taxes or delays is one that does not go to your beneficiaries. The structure of your estate—not just the size—determines what is taxed and what is not.

With thoughtful organization, you can reduce the tax burden, protect your executor from complexity, and ensure your plan delivers its full value.

Structure with clarity. Reduce what is taxed. And give your estate the focus it deserves—not just during life, but after.