Legacy Planning

Estate & Legacy Planning

Protect your assets and ensure your wishes are carried out. Estate planning is one of the most important — and often overlooked — areas of a complete financial plan.

What Is Estate Planning?

Estate planning is the process of organizing your affairs so that your assets are distributed according to your wishes after you pass away — in the most tax-efficient and administratively straightforward way possible. It also includes planning for incapacity, ensuring someone trusted can make financial and healthcare decisions on your behalf if needed.

Key Estate Planning Documents

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Last Will and Testament

Your will outlines who receives your assets, who is your executor, and who becomes guardian of any minor children. Without a will, provincial laws determine distribution.

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Power of Attorney

A Continuing Power of Attorney for Property gives a trusted person authority to manage your finances if you are incapacitated. A Personal Care POA covers healthcare decisions.

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Beneficiary Designations

Assets like life insurance, RRSPs, TFSAs, and pension plans can pass directly to named beneficiaries outside of your estate, avoiding probate fees.

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Trusts

Trusts can provide control over how and when assets are distributed, protect beneficiaries, and in some cases, reduce the tax burden on your estate.

Tax Considerations in Estate Planning

In Canada, there is a deemed disposition of assets at death, which can trigger capital gains taxes. Strategic planning with a financial advisor and estate lawyer can help minimize this tax burden using tools like spousal rollovers, life insurance proceeds, charitable bequests, and trust structures.

Frequently Asked Questions

Yes. A will ensures your assets go where you intend, not where provincial law directs. It also allows you to name guardians for minor children, appoint a trusted executor, and avoid family conflicts over your estate.

If you name a spouse or common-law partner as beneficiary, your RRSP can roll over to their RRSP or RRIF tax-free. If you name a non-spouse beneficiary or your estate, the full RRSP value is included in your income in the year of death and taxed accordingly.

Life insurance can fund the tax bill at death without forcing your estate to sell assets. It can also equalize inheritances between children who inherit business assets and those who receive other assets, or provide a legacy gift to charity.