Why Business Owners — Including Realtors With PRECs — Should Have a Secondary Will in Ontario

If you own a business in Ontario or hold shares in a Canadian privately held corporation, your estate plan needs to go beyond a standard will. This includes:

• Small business owners

• Family-owned corporations

• Entrepreneurs with holding companies

• Professionals with professional corporations (PCs)

• Realtors operating through a Personal Real Estate Corporation (PREC)

• Investors with shares in private corporations

For all these individuals, a Secondary Will is one of the most effective tools to reduce probate fees, streamline estate administration, and protect the value of your corporate interests.

Here’s what business owners need to know.

1. Probate Savings Can Be Substantial

Ontario’s probate fee (Estate Administration Tax) is roughly 1.5% of the value of your estate.

If you own a corporation worth $500,000 or more — very common for successful realtors with PRECs — that alone could save your estate thousands in fees.

A Secondary Will strategically keeps corporate assets out of probate.

2. A PREC or Corporate Share Structure Requires Specialized Planning

If you're a realtor with a Personal Real Estate Corporation (PREC), your corporation likely has:

• Retained earnings

• Corporate assets

• Shareholder loans

• Annual commissions paid into the corporation

Without a Secondary Will, your PREC’s value may need to be probated, delaying access to funds your family may need.

A Secondary Will ensures:

• The transfer of shares is faster

• The corporation continues operating smoothly

• Your estate avoids unnecessary tax

• Your estate trustee can access corporate funds without probate delays

This is especially crucial if you run a high-volume real estate practice through your PREC.

3. Business Ownership Often Gets Complicated — a Secondary Will Provides Clarity

If you operate or own shares in a corporation, issues can arise if your estate plan isn’t clear:

• Who will inherit your shares?

• Who can access corporate bank accounts?

• Will the business continue operating?

• What happens to shareholder agreements?

• How will surviving owners buy out your interest?

• Will your spouse or estate trustee face delays?

A Secondary Will provides explicit instructions about your business assets, so there are no gaps or conflicts during estate administration.

4. It Keeps Your Business Affairs Private

Primary Wills that go through probate become public records. Secondary Wills do not.

This means:

• Corporate valuations

• Shareholder loan amounts

• PREC earnings

• Business strategies

• Family business details

…all remain confidential. For many entrepreneurs and realtors, privacy is a major advantage.

5. Faster Access to Corporate Funds

Probate can take weeks or months. During that time, your estate trustee may not be able to:

• Access your corporate bank accounts

• Pay business debts

• Pay employee salaries

• Handle taxes

• Keep the business running

A Secondary Will avoids these delays, allowing estate administration to begin immediately for your business assets.

Who Should Have a Secondary Will?

You should consider a Secondary Will if you:

• Own a PREC

• Own a medical, dental, or legal professional corporation

• Own a restaurant, retail business, or small company

• Have a holding company

• Own shares in a family corporation

• Operate an incorporated side business

• Hold shares in a private investment corporation

• Are an investor or partner in a private venture

Essentially, if any part of your business is incorporated, a Secondary Will is strongly recommended.

Now is the time to secure the future of your business and your family. At Willing Law, we prepare comprehensive Primary and Secondary Wills tailored to entrepreneurs, realtors, and professionals across Ontario.

Book your estate planning consultation today to learn how a Secondary Will can reduce probate fees, protect your corporate assets, and ensure your business continues smoothly for the people you care about.

519 980 3476

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