# What Is the Difference Between a Will and a Trust in Canada?

> In Ontario, Alberta, and federally, a will only takes effect after death and usually needs probate (in Ontario, a Certificate of Appointment of Estate Trustee) before an executor can act. A trust can be created during life (inter vivos) or through a will (testamentary), takes effect once its three certainties are met, and its assets can bypass probate and probate fees.

Published 2026-08-12 · Last reviewed 2026-08-09 · [Canonical page](https://canadalegalcenter.ca/articles/what-s-the-difference-between-a-will-and-a-trust-in-canada/)

Legal information, not legal advice.

## Comparing a will and a trust

A will and a trust solve different problems, and in Ontario, Alberta, and under federal tax law they are triggered differently, cost differently to administer, and are governed by different statutes.

<div class="table-scroll">

| Feature | Will | Trust |
|---|---|---|
| When it takes effect | Only after death (Ontario guidance: "Your will only takes effect after you die") | Once the three certainties, of intent, subject-matter, and object, are met (SCC, *Air Canada v M & L Travel Ltd*); an inter vivos trust operates during the settlor's life, a testamentary trust only arises on death |
| Governing statute | Ontario: Succession Law Reform Act; Alberta: Wills and Succession Act | Common law (three certainties), plus the Income Tax Act's definitions of inter vivos and testamentary trusts, plus provincial Trustee Acts for administration |
| Court fee tied to death | Ontario: Estate Administration Tax, $15 per $1,000 (or part) of estate value over $50,000, charged only if a Certificate of Appointment of Estate Trustee (probate) is applied for; no tax if none is applied for. Alberta: a court fee for a grant of probate or administration, tiered by the net value of Alberta estate property | Assets already held in a properly funded trust are not part of the estate that gets probated, so no probate fee applies to them |
| If nothing is in place | Ontario: intestacy under the Succession Law Reform Act, with a court application needed for someone to get authority to administer. Alberta: intestacy under the Wills and Succession Act | Trust law does not govern intestacy at all; without a will or trust, provincial intestacy rules control everything |
| Who administers it | An executor, appointed by the will | A trustee, with separate statutory duties: Ontario's Trustee Act sets out how a trustee is replaced or discharged (s 3(1)); Alberta's Trustee Act sets investment standards a trustee must apply to trust funds (s 3(5)) |

</div>

## Which one you need depends on what you're solving for

Neither instrument is a universal upgrade over the other; they answer different questions, and many estate plans use both.

**If the main concern is what happens to everything you own when you die**, a will is the baseline document. It only takes effect after death, and in both Ontario and Alberta, dying without one hands the outcome to the provincial intestacy statute (the Succession Law Reform Act in Ontario, the Wills and Succession Act in Alberta) rather than to your own wishes.

**If the main concern is avoiding probate on specific assets, or having someone manage property before or without a court process**, a trust does something a will cannot: it can take legal effect immediately, once the three certainties are satisfied, rather than waiting for death. Because trust assets sit outside the estate, they are not part of what Ontario's Estate Administration Tax or Alberta's probate court fee is calculated on.

**If the concern is who takes over management of an asset, and under what rules**, the two instruments hand that job to different people with different duties. A will names an executor to administer the estate. A trust names a trustee, and that role comes with its own statutory obligations, such as the investment-standard duties set out in Alberta's Trustee Act, or the replacement and discharge rules in Ontario's Trustee Act, neither of which applies to an executor acting purely under a will.

**If the plan involves a trust created by the will itself** (a testamentary trust), that trust does not exist while the person is alive; federally, under the Income Tax Act, it only arises on and as a consequence of death. An inter vivos trust, by contrast, is set up and can operate during the settlor's lifetime.

## Probate costs: Ontario vs Alberta

Where a will goes through probate, both provinces charge a fee tied to estate value, but they're structured differently:

- **Ontario** charges the Estate Administration Tax only if an estate certificate (probate) is applied for and issued: $15 per $1,000 (or part) of estate value above $50,000. No certificate, no tax.
- **Alberta** charges a court fee for issuing a grant of probate or administration, tiered by the net value of estate property located in Alberta.

Assets moved into a trust before death, and not part of the probated estate, are not counted toward either fee. A British Columbia trial-level decision on alter ego trusts describes this as one of the reasons such trusts are used, to reduce or eliminate probate fees and let assets continue being managed after death without court approval; that reasoning is persuasive but was not issued by an Ontario or Alberta court.

## What neither instrument does on its own

A will does not operate while you're alive, so it cannot help with managing your affairs if you become incapacitated; that is a separate kind of planning entirely. A trust, meanwhile, does not decide who gets what if it is never properly funded, no assets are ever transferred into it, or the three certainties are not met; an improperly constituted trust simply fails as a trust. Getting either instrument wrong tends to default the outcome back to the provincial intestacy rules, whether or not that was ever the intention.

## Frequently asked questions

**Does putting assets in a trust avoid probate fees in Ontario or Alberta?**

Assets properly transferred into a trust before death generally sit outside the estate that goes through probate, so they aren't counted for Ontario's Estate Administration Tax or Alberta's probate court fee. This principle is discussed in a British Columbia trial-level decision on alter ego trusts, which is persuasive but not binding in Ontario or Alberta.

**What happens if I die without a will or a trust in Ontario?**

In Ontario, the Succession Law Reform Act decides how the estate is distributed, and someone must apply to the court for authority to administer the estate. Trust law does not fill this gap.

**What happens if I die without a will in Alberta?**

In Alberta, the Wills and Succession Act sets out how and to whom the deceased's property is transferred when there is no will, regardless of whether any trust exists.

**Can a will create a trust?**

Yes, federally under the Income Tax Act a trust created by a will is a testamentary trust, and it only comes into existence on the death of the person who made the will, unlike an inter vivos trust set up during that person's lifetime.


## Sources

1. [Air Canada v M & L Travel Ltd (SCC)](https://www.canlii.org/en/ca/scc/doc/1993/1993canlii33/1993canlii33.html), 1993 CanLII 33 (SCC), [1993] 3 SCR 787
2. [Income Tax Act, s 108(1)](https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-108.html), RSC 1985, c 1 (5th Supp), s 108(1)
3. [Ontario.ca - Administering estates](https://www.ontario.ca/page/administering-estates), Succession Law Reform Act, RSO 1990, c S.26
4. [Open Government Alberta - Wills and Succession Act](https://open.alberta.ca/publications/w12p2), Wills and Succession Act, SA 2010, c W-12.2
5. [Alberta.ca - Wills in Alberta](https://www.alberta.ca/wills-in-alberta), Wills and Succession Act, SA 2010, c W-12.2
6. [Trustee Act (Ontario)](https://www.canlii.org/en/on/laws/stat/rso-1990-c-t23/latest/rso-1990-c-t23.html), RSO 1990, c T.23, s 3(1)
7. [Trustee Act (Alberta)](https://www.canlii.org/en/ab/laws/stat/rsa-2000-c-t-8/latest/rsa-2000-c-t-8.html), RSA 2000, c T-8, s 3(5)
8. [Ontario.ca - Estate Administration Tax](https://www.ontario.ca/page/estate-administration-tax), Estate Administration Tax Act, 1998, SO 1998, c 34, Sched (retrieved 2026-07-17)
9. [Alberta.ca - Court fees](https://www.alberta.ca/court-fees), Surrogate Rules, Alta Reg 130/1995, r 44 (Schedule 2) (retrieved 2026-07-17)
10. [Mong Alter Ego Trust No 1 v Yip (BCSC)](https://www.canlii.org/en/bc/bcsc/doc/2022/2022bcsc1327/2022bcsc1327.html), 2022 BCSC 1327