Estate Planning Checklist

Estate Planning in Canada

What is Estate Planning?

Estate planning is often a topic we prefer to avoid thinking about because it forces us to confront our mortality and contemplate difficult scenarios. However, it’s a very important step to ensure that your money, belongings and assets are all distributed according to your final wishes. Without an estate plan in place, there is a risk that your assets might not be distributed as you had intended, potentially leading to family disputes, financial hardships, or legal complications. By taking the time to create an estate plan today, you can ensure that your loved ones are provided for, your assets are managed responsibly, and your legacy is preserved according to your wishes.

In addition to drafting a Will, estate planning involves other important components such as appointing beneficiaries and trustees, establishing powers of attorney, strategizing for business succession, and using methods to minimize the tax burden on your estate and beneficiaries.

Do I Need an Estate Plan?

Many people might assume that estate planning is only for the wealthy; however, nearly everyone has an estate (even if it’s just one bank account). Your estate encompasses all of your current assets, including your home, vehicle, belongings, finances – and yes, even your debts. Every estate plan will be personalized to your unique financial and life situation which is why it can be very helpful to work with an estate planning professional.

Estate Planning Checklist

Creating an estate plan will be unique to each individual, but there are some basic steps that everyone can follow. We also have an Estate Planning: Personal Records Organizer available for download to help guide you through the process.

Itemize Your Assets

Begin your estate planning by thoroughly inspecting both the interior and exterior of your home to identify all valuable assets. These might be the property itself, electronic devices such as televisions and computers, precious jewelry, unique collectibles, automobiles, artwork, antique items, gardening tools, or anything else of value.

Feel free to make notes or take photos of each item to help with organization or perhaps remind you of what you would like to leave to a particular person. Don’t forget about items that may have sentimental value.

Document Any Non-Physical Assets

Make a list of any financial assets or entitlements, including any bank accounts, brokerage accounts, RRSPs, GICs, TFSAs, life insurance policies, health insurance, or any other policies that might come into effect after you pass. It’s important to be as specific as possible, including account numbers and contact information for the firms holding the assets. This will minimize any risk of misinterpretation when the assets are being reviewed for distribution.

This is also a good time to review your designated beneficiaries for each of your accounts. The listed beneficiaries should be current and match what you have specified in your Will or trust. Conflicts in designations between listed account beneficiaries and your Will can cause problems and may result in your assets going to the wrong person. Be sure to keep these updated in your online account.

Document Any Debts

Debts will need to be taken into account, including credit cards or other financial obligations. This might include loans, mortgages, or other lines of credit. Once again, it will be important to be as specific as possible, documenting any relevant account numbers or contact information.

Create a List of Memberships & Charitable Organizations

Document any memberships or professional associations you may be a part of. Some organizations offer life insurance benefits for their members for which your beneficiaries may be eligible to collect. Make note of any charitable organizations you support in case you would like a donation to be made in your memory. If you have any automated charitable donations setup, be sure to pass that information on to your heirs to ensure they can either cancel them or take them on.

Consider Your Digital Footprint

Whether you are an active social media user or just send an occasional email, most people have some level of digital presence on the internet. Now is a good time to consider what will happen to your online accounts such as LinkedIn, Facebook, email, or any other online services. Be sure to document how you would like your heirs to handle these accounts and ensure they will be able to access them. A password manager such as Bitwarden or LastPass could be an excellent solution to consolidating your passwords in a secure manner and allowing access to others if need be.

Duplicate Your Lists

Make at least three copies of the lists you have created after signing and dating them. Give the original to your Executor, a copy to your spouse (or main beneficiary) and keep the last copy for yourself. Be sure to keep the documentation in a safe place where it won’t be damaged or forgotten. A safe or safety deposit box is an ideal place to keep the copies.

Choose an Executor

An Executor is someone who will administer your estate after your death. This can be just about anyone of your choosing, as long as they have reached the age of majority and are of sound mind. It is possible to choose more than one Executor or alternates in case your primary is unable or unwilling to do the job. If you decide to name more than one Executor, it’s recommended that you choose an odd number (eg. 3 is better than 2) as any decisions are agreed to by a majority.

It goes without saying that whoever you select for this role should be trustworthy and have good judgment. It’s also important to ensure that your Executor won’t be overly burdened by the required duties and is happy to take on the responsibility.

Draft Your Will

Wills are not just for older people; it’s recommended that anyone over the age of 18 should have one. This document acts as an important rulebook for the distribution of your assets and is an essential part of any estate plan. It’s best to create the Will soon after creating your list of assets as this will make it easier to decide who gets what. If you have minor children, the Will can also name a guardian for them as well as any pets you may have.

While it’s possible for you to write your own Will by using online services, having a lawyer help is relatively inexpensive and can make the process less daunting.

Creating a valid Will in Canada is fairly straightforward. In almost all provinces, you just have to make sure it’s printed and in physical form, dated, signed by the Will-maker, and witnessed by two witnesses. Your witnesses need to be adults who will not benefit in any way from the execution of your Will, so close friends or colleagues from work can be good choices. It’s not necessary for your Will to be notarized or witnessed by someone “official” such as a lawyer or notary public for it to be valid.

If you’re married, it’s a good idea for each spouse to create a separate Will, including plans for the surviving spouse.

Review Your Will

Review your Will every couple of years or so and amend it if necessary. Significant life events like marriage, divorce, or the birth of a child are all great reasons to take another look at your Will and make adjustments if needed. Life is a dynamic process, as are your assets and wishes, so it’s important to review and update your Will regularly.

Copy Your Executor

Once your Will is finalized, be sure that a copy is given to your Executor. Keep your original in your home (in a safe place) or if you are using a lawyer, they may be able to keep it in their office. Again, a safe or safety deposit box are both ideal places to keep your Will away from accidental damage or misplacement.

Consult with a Financial Planner

Having a financial professional review your estate plan can reveal opportunities for improvements that may save you money. IG Wealth Management advisors are able to incorporate your estate plan into your overall financial plan and can suggest strategies that can improve tax efficiency, help with business succession, setting up trusts, and drawing up powers of attorney.

An IG Wealth Management advisor may also be able to help simplify and consolidate your finances, allowing for lower costs, less paperwork and more straightforward management of your investments. This can be helpful not just for you, but for your heirs as well.