Ontario medical professionals with a Medical Professional Corporation (MPC) can save tens of thousands of dollars in Estate Administration Tax by utilizing a Multiple Wills strategy. A Primary Will covers your personal assets (home, bank accounts) which go through probate, while a Secondary Corporate Will covers your private clinic shares, allowing them to bypass the 1.5% probate tax entirely.
Physicians, surgeons, and dentists in Ontario often incorporate their practices to take advantage of tax deferrals and liability protection. Whether you run a family clinic in Mississauga, a specialist practice in Ottawa, or a dental office in Toronto, your Medical Professional Corporation (MPC) is likely one of your most valuable assets. 🏥 However, what happens to those valuable corporate shares when you pass away?
If you only have one standard Will, the entire value of your MPC will be subjected to Ontario’s Estate Administration Tax (commonly known as probate tax). Because probate tax is roughly 1.5% of your estate’s total value, a $2 million CAD medical practice would cost your family $30,000 CAD just to process the Will. Fortunately, Ontario law allows business owners to use a sophisticated legal strategy known as “Multiple Wills” to legally bypass this massive tax burden.
Step-by-Step Process for the Multiple Wills Strategy in Ontario
Drafting Corporate Wills requires an estate lawyer who understands both the Succession Law Reform Act and the strict regulations of the College of Physicians and Surgeons of Ontario (CPSO). 📍 Here is how the Multiple Wills process is executed.
Step 1: Assess the Value of Your MPC
Before drafting new legal documents, you must work with your medical accountant to understand the true value of your corporation. This includes retained earnings, clinic real estate, advanced medical equipment, and any investment portfolios held within the corporation. If your MPC holds significant value, the cost of drafting a Secondary Will is negligible compared to the massive probate tax savings.
Step 2: Draft the Primary Will (Personal Assets)
Your lawyer will draft a Primary Will to deal with all assets that legally require probate. 📄 In Ontario, banks will not release large personal account balances, and the Land Registry Office will not transfer personal real estate (like your primary residence), without a probated Will. Therefore, your Primary Will includes your house, personal vehicles, personal bank accounts, and standard investments.
Step 3: Draft the Secondary Corporate Will (Private Shares)
Simultaneously, your lawyer will draft a Secondary Will. This document explicitly deals only with the shares of your private Medical Professional Corporation and any other privately held company shares. Because private corporate shares do not legally require a court-issued probate certificate to be transferred to your beneficiaries, this entire Will bypasses the probate court, completely avoiding the 1.5% Estate Administration Tax on the business value.
Step 4: Ensure Proper Revocation Clauses
This is where standard online Will kits fail catastrophically. ⚠️ Every Will begins with a standard clause that says, “I revoke all previous Wills.” If your lawyer is not careful, signing the Secondary Will might accidentally cancel out your Primary Will! A skilled estate lawyer will draft custom revocation clauses stating that the Secondary Will does *not* revoke the Primary Will, allowing them to exist together harmoniously.
Step 5: Appoint an Appropriate Estate Trustee
You must appoint an executor (Estate Trustee) for both Wills. While you can choose your spouse to manage your personal assets, managing an MPC has strict rules. Under the Ontario Business Corporations Act and CPSO regulations, only a licenced physician can hold voting shares of an MPC. Your lawyer must ensure your Secondary Will is drafted so that your executor has the legal authority to wind down the practice, sell the assets, or transition the patients properly without violating College rules.
How Much Does a Corporate Will Strategy Cost in Ontario?
Investing in a Multiple Wills strategy is an upfront cost that yields a massive return on investment for your estate. 💰 Here are the typical costs as of May 2026 in CAD:
- Legal Fees for Multiple Wills: Drafting a coordinated Primary and Secondary Will package generally costs between $2,000 and $4,500 CAD, depending on the complexity of your corporate structure.
- Probate Tax (Primary Will): The Ontario government charges $15 for every $1,000 of estate value over $50,000 CAD. Your family will only pay this on your personal assets.
- Probate Savings (Secondary Will): If your MPC is worth $3,000,000 CAD, the Secondary Will strategy saves your family exactly $45,000 CAD in probate taxes.
How Long Does the Process Take?
Proper estate planning for a medical professional is not an overnight task. Coordinating with your accountant to review the corporate minute book and share structure takes time. Generally, from the initial lawyer consultation to the final signing ceremony of both the Primary and Secondary Wills, the process takes approximately 4 to 8 weeks.
Comparing the Two Wills
Understanding which assets belong in which document is crucial for this strategy to succeed. 📝
| Asset Type | Which Will Does it Belong To? | Subject to 1.5% Probate Tax? |
|---|---|---|
| Primary Residence (Joint or Sole) | Primary Will | Yes (if not joint) |
| Personal Bank Accounts | Primary Will | Yes |
| MPC Corporate Shares | Secondary Corporate Will | No. Completely Exempt. |
| Shareholder Loans to the MPC | Secondary Corporate Will | No. Completely Exempt. |
Frequently Asked Questions (FAQ)
Is the Multiple Wills strategy actually legal in Ontario?
Yes, absolutely. The strategy was affirmed by the Ontario Superior Court of Justice in the landmark case of Granovsky Estate v. Ontario. It is a fully sanctioned, widely used legal method to minimize Estate Administration Tax for private business owners.
Who can be the executor of my Secondary Will?
While a non-physician (like your spouse) can act as an executor to gather the financial value of the shares and distribute the wealth, they cannot practice medicine or hold voting shares to practice. Often, doctors appoint a trusted medical colleague as a co-executor specifically to handle the clinical wind-down of the MPC.
Does a Secondary Will help with Capital Gains Tax?
No. It is crucial to understand that Multiple Wills only bypass the 1.5% Estate Administration Tax (probate). Your estate will still be subject to capital gains tax on the deemed disposition of the corporate shares at the time of your death, which is a matter for your accountant.
What if my corporation only holds investments, not a medical practice?
The Multiple Wills strategy works for any privately held Ontario corporation. Even if you have retired from medicine and converted your MPC into a standard private holding company (Holdco) to manage real estate or stocks, the Secondary Will still successfully shields those shares from probate tax.
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