Probate in Canada

When a person passes away, the process of validating their will and settling their estate is known as probate. While it is a necessary legal step, it can often be a lengthy, costly, and public process that creates significant challenges for the deceased's loved ones.

Probate is the court-supervised process of formally proving that a will is legally valid. The court appoints an executor and gives them the authority to gather the deceased's assets, pay off any debts, and distribute the remaining property to the beneficiaries as outlined in the will.

At SG Wealth, a key part of our estate planning process is helping clients structure their assets to minimize the impact of probate wherever possible. Tools like segregated funds are central to this strategy.

One of the most powerful features of a segregated fund is its ability to bypass the probate process entirely. Because it is an insurance contract, a segregated fund allows you to name a beneficiary directly on the policy. Upon the death of the annuitant, the death benefit is paid directly to the named beneficiary. The asset does not flow through the will and does not form part of the estate.

This means the beneficiary typically receives the proceeds within a few weeks of providing the necessary documentation, rather than waiting months or years. Because the asset is not part of the estate, it is not subject to probate fees - on a large investment, this can result in tens of thousands of dollars in savings. And because the transfer is a private transaction between the insurance company and the beneficiary, it is not recorded in any public court documents.