The Ultimate Estate Planning Checklist for Canadians
Your Step-by-Step Guide to a Complete Estate Plan
Use this comprehensive checklist to organize your financial life and ensure you have a robust plan to protect your assets and provide for your family.
An Estate Planning Checklist for High-Net-Worth Canadians
Effective estate planning in Canada is a detailed process that goes far beyond simply drafting a will. This checklist is designed for high-net-worth individuals, incorporated professionals with complex financial needs, and business owners planning for succession to help you organize your affairs and build a comprehensive plan.
Phase 1: Inventory and Organization
Create a Net Worth Statement: Compile a detailed list of all your assets and liabilities. Include bank accounts, investment accounts, real estate, private company shares, vehicles, and personal property. Note how each asset is owned (solely, jointly, in a corporation).
Gather Key Documents: Locate and organize all essential documents, including birth and marriage certificates, citizenship or permanent residency documents, previous tax returns (personal and corporate), investment account statements, real estate deeds and mortgage documents, insurance policies (life, disability, critical illness), shareholder agreements and corporate documents, and existing wills and Powers of Attorney.
Digital Asset Inventory: Create a list of all your digital assets, including social media accounts, online banking portals, and cryptocurrency wallets, along with usernames and instructions for accessing them.
Phase 2: Core Legal Documents
Draft or Update Your Will(s): Work with an estate lawyer to create a will that reflects your current wishes. If you own a corporation, consider a dual-will strategy to minimize provincial probate fees.
Appoint an Executor: Choose a trustworthy and capable person or trust company to act as the executor of your estate. Name at least one alternate.
Establish Powers of Attorney: Create enduring Powers of Attorney to plan for incapacity for both Property and Personal Care. Choose your attorneys carefully and name alternates.
Create a Health Care Directive (Living Will): Document your wishes for end-of-life medical care to guide your attorney for personal care.
Phase 3: Tax and Probate Minimization
Review Beneficiary Designations: Check the beneficiary designations on all your registered accounts (RRSPs, RRIFs, TFSAs) and life insurance policies. Ensure they are up-to-date and aligned with your estate plan.
Review Asset Ownership: Analyse how your assets are owned. Consider using joint ownership with right of survivorship for specific assets, but only after consulting with legal and tax professionals about the potential risks.
Consider Trusts: Explore whether a family trust could be used for income splitting and creditor protection, or if an alter-ego or joint spousal trust could help you achieve your goals for tax minimization and probate avoidance.
Phase 4: For Business Owners
Review Shareholder Agreement: Ensure your shareholder agreement includes a clear, funded buy-sell provision that addresses what happens to your shares upon death or disability. This is often funded with a corporate-owned life insurance policy.
Consider an Estate Freeze: If you plan to pass your business to the next generation, work with your advisory team to determine if an estate freeze is the right strategy to defer capital gains tax.
Plan for Business Succession: Develop a formal business succession plan to ensure a smooth ownership transition.
Phase 5: Review and Communication
Hold a Family Meeting: Communicate the key aspects of your estate plan to your executor and your family to ensure they understand your wishes and know where to find important documents.
Schedule Regular Reviews: Your estate plan is not static. Schedule a review with your advisory team every 3-5 years, or whenever a major life event occurs (marriage, divorce, birth of a child, sale of a business).
Your Partner in Estate Planning
This checklist can seem daunting, but you don't have to do it alone. At SG Wealth Management, we act as the quarterback for your entire estate plan, coordinating with your legal and tax advisors to ensure every piece of the puzzle fits together perfectly.
Start Your Estate Planning Journey
Contact us today to begin building your comprehensive estate plan.
Our team will guide you through every step of the process.