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What is probate? In common usage,
probate refers both to the process of applying to a court to
have a Will confirmed as valid, and the charge levied by the
court for having done so. Technically, the process is an
"application for certificate of appointment of estate
trustee with a will" and the charge is the "estate
administration tax", but in common usage both are still
generally called "probate".
Can
you legally avoid probate? Yes!
There are a number of strategies that can be used to escape
probate.
Gift - Property that is given as a gift during your
lifetime does not fall into your estate because you do not
own it upon your death. The gift becomes the legal property
of the person to whom you give it. In situations where a
testator does not require continued legal control of the
asset and where there is no doubt that this is the person
who would receive that property upon death, this is the
simplest strategy to use.
Joint ownership - Quite often spouses will hold their
home in joint ownership with right of survivorship, meaning
that the home passes to the surviving spouse upon the
earlier death. Similar arrangements can be made with
individuals other than a spouse, and the type of property
need not be restricted to real estate. In fact, many
financial assets such as bank accounts and other investments
such as term deposits are held jointly with the intention
that the account goes to the survivor (or survivors) at
death.
Insurance beneficiary designation - Under a life
insurance policy you can name a beneficiary who is to
receive the death benefit proceeds directly, without the
payment passing through the estate. In addition to probate
avoidance, any creditors of your estate will be bypassed.
This also includes GIC’s, term deposits and segregated funds
invested with a life insurance company.
RRSP/RRIF beneficiary designation - As with insurance
designations, probate may be avoided for named beneficiaries
under RRSPs, RRIFs and other similarly registered investment
plans, though protection against estate creditors may not be
available.
Estate freeze - An advanced planning technique such as
an estate freeze may be used for those with appreciating
capital assets, particularly those with substantial real
estate holdings, long-held securities portfolios or
ownership interests in small businesses. An estate freeze
usually is affected using trusts and/or corporations.
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Grant
Hicks, C.I.M., FCSI is a professional speaker, co-author and
a Retirement Planning Specialist . A leader in
the financial industry, Grant has been helping Vancouver
Island residents plan and create their retirement lifestyles
since 1989. 
