Essential Estate Planning Documents
| Document | Purpose | Who Needs It |
|---|---|---|
| Will | Directs how assets are distributed | Everyone 18+ |
| Power of Attorney (financial) | Someone manages finances if you can’t | Everyone 18+ |
| Power of Attorney (health/personal care) | Medical decisions if you can’t decide | Everyone 18+ |
| Beneficiary designations | Direct transfer of registered accounts + insurance | Account/policy holders |
| Living will / advance directive | Medical wishes (life support, treatment) | Recommended for all adults |
How to Create a Will
| Method | Cost | Pros | Cons |
|---|---|---|---|
| Lawyer | $300-$1,500+ | Legally sound, customized, complex situations | Higher cost |
| Online service (Willful, Epilogue) | $99-$350 | Convenient, affordable, guided process | Limited for complex estates |
| DIY will kit (stationery) | $20-$50 | Very cheap | Easy to make mistakes; may be challenged |
| Holographic will (handwritten) | $0 | Free; valid in most provinces | No witnesses required but easily challenged |
What Goes in a Will
| Item | Details |
|---|---|
| Executor (estate trustee) | Person who carries out your wishes |
| Guardian for minor children | Who raises your kids |
| Asset distribution | Who gets what (specific bequests + residue) |
| Funeral wishes | Burial, cremation, memorial preferences |
| Pet care | Who cares for your pets |
| Charitable gifts | Donations to organizations |
| Digital assets | Social media, crypto, online accounts |
| Trusts (testamentary) | Hold assets for minors or vulnerable beneficiaries |
Powers of Attorney
Power of Attorney for Property/Finances
| Detail | Purpose |
|---|---|
| When it takes effect | Immediately (or upon incapacity, depending on wording) |
| What attorney can do | Pay bills, manage investments, sell property, file taxes |
| Springing vs immediate | Springing: only activates upon incapacity. Immediate: active right away. |
| Revocable | Yes, while you have mental capacity |
| Choose someone you trust completely | They have access to all your finances |
Power of Attorney for Personal Care/Health
| Detail | Purpose |
|---|---|
| When it takes effect | Only when you lack capacity |
| What attorney can do | Medical decisions, living arrangements, end-of-life care |
| Advance directive | Can include specific wishes (e.g., no life support) |
| Multiple attorneys | Can name more than one (joint or separate authority) |
Beneficiary Designations
| Account | Designation Effect | Probate? |
|---|---|---|
| RRSP/RRIF (spouse as beneficiary) | Tax-free rollover to spouse’s RRSP/RRIF | No probate |
| RRSP/RRIF (non-spouse beneficiary) | Fully taxable as income of the estate | No probate, but taxed |
| TFSA (successor holder — spouse) | Tax-free transfer, continues growing | No probate |
| TFSA (beneficiary — non-spouse) | Tax-free up to date of death; growth after death is taxable | No probate |
| Life insurance | Paid directly to named beneficiary, tax-free | No probate |
| Pension | Depends on plan — often to spouse | Check with plan |
| Non-registered accounts | Can name beneficiary in some provinces | Varies |
Naming beneficiaries on registered accounts bypasses the will entirely and avoids probate fees.
Taxes on Death
| Asset | Tax on Death |
|---|---|
| RRSP/RRIF | Entire balance taxable as income (unless to spouse) |
| TFSA | No tax (if successor holder is spouse) |
| Principal residence | Capital gains exempt |
| Non-principal real estate | Capital gains on appreciation |
| Stocks/investments (non-registered) | Capital gains on deemed disposition |
| Life insurance proceeds | Tax-free to beneficiary |
| Business shares | Capital gains, potentially significant |
Tax Reduction Strategies
| Strategy | How It Works |
|---|---|
| Name spouse as beneficiary on RRSP/RRIF | Tax-free rollover |
| Name spouse as successor holder on TFSA | Tax-free continuation |
| Charitable donations in will | Tax credit on final return (up to 100% of income) |
| Principal residence exemption | No tax on home sale |
| Life insurance to cover tax bill | Proceeds pay the estate’s tax |
| Gradual gifting during lifetime | Reduces estate size (but watch attribution rules) |
| Spousal rollover on all assets | Defer all taxes until second spouse’s death |
Probate Fees by Province
| Province | Probate Fee | On $500,000 Estate | On $1,000,000 Estate |
|---|---|---|---|
| Alberta | $525 (max) | $525 | $525 |
| Quebec | $0-$65 (notarized will) | $0-$65 | $0-$65 |
| Saskatchewan | $7 per $1,000 | $3,500 | $7,000 |
| Manitoba | $70 per $1,000 (over $10,000) | $350 | $700 |
| Ontario | $5 per $1,000 (first $50K) + $15 per $1,000 after | $6,750 | $14,250 |
| British Columbia | $6 per $1,000 (first $25K) + $14 per $1,000 after | $6,800 | $13,800 |
| Nova Scotia | $85.60 per $1,000 (over $100K limit) | $4,280 | ~$8,560 |
| New Brunswick | $5 per $1,000 | $2,500 | $5,000 |
Ontario and BC have the highest probate fees, making probate avoidance strategies more valuable in those provinces.
Probate Avoidance Strategies
| Strategy | How It Works | Best In |
|---|---|---|
| Beneficiary designations | Bypass will on RRSP, TFSA, insurance | All provinces |
| Joint ownership with right of survivorship | Asset passes to surviving owner | ON, BC (high probate) |
| Multiple wills (primary + secondary) | Secondary will for private company shares | Ontario |
| Inter vivos trust | Assets in trust bypass probate | BC, Ontario |
| Gifts during lifetime | Reduce estate value | All provinces |
Estate Planning Checklist
| ☐ | Action | Priority |
|---|---|---|
| ☐ | Create or update will | Essential |
| ☐ | Create Powers of Attorney (financial + health) | Essential |
| ☐ | Review beneficiary designations (RRSP, TFSA, insurance) | Essential |
| ☐ | Name guardians for minor children | Essential (if applicable) |
| ☐ | Organize important documents (will location, accounts, passwords) | High |
| ☐ | Discuss wishes with executor and family | High |
| ☐ | Review life insurance needs | High |
| ☐ | Consider probate reduction strategies | Moderate (ON, BC especially) |
| ☐ | Review joint ownership on major assets | Moderate |
| ☐ | Create a digital asset inventory | Moderate |
| ☐ | Consider charitable giving strategy | Optional |
| ☐ | Consult estate lawyer for complex situations | If applicable |
When to Update Your Estate Plan
| Life Event | Action Needed |
|---|---|
| Marriage | Update will (marriage may revoke old will in some provinces) |
| Divorce | Update will, POA, beneficiaries (divorce may revoke gifts to ex in some provinces) |
| Birth/adoption of child | Add child as beneficiary; name guardian |
| Death of beneficiary/executor | Name new beneficiary/executor |
| Significant asset change | Update will to reflect new assets |
| Move to another province | Review provincial differences in estate law |
| Retirement | Review withdrawal strategy and beneficiary designations |
| Every 3-5 years | General review even without life changes |
Digital Estate Planning
| Account Type | What to Document |
|---|---|
| Email accounts | Username, password, recovery info |
| Banking/investing | Institution, account numbers |
| Social media | Facebook, Instagram legacy contacts |
| Cryptocurrency | Wallet addresses, seed phrases, exchange accounts |
| Subscriptions | List of recurring charges to cancel |
| Online business | Revenue streams, supplier contacts |
| Cloud storage | Google Drive, Dropbox, iCloud |
| Password manager | Master password or recovery method |
Online Will Services in Canada
| Service | Cost | Features |
|---|---|---|
| Willful | $99-$349 | Will + POA, guided questions, lawyer-reviewed templates |
| Epilogue | $139-$349 | Will + POA, Ontario/BC/Alberta focus |
| LegalWills.ca | $40-$80 | Basic will creation |
| NoticeConnect | Free search | Estate notice search tool |