New Year’s Resolutions for Wealth and Estate Planning  

By Kelli Preston (LLB ’02)

As you embark on a new year filled with possibilities, consider prioritizing resolutions that ensure lasting financial security and peace of mind for you and your loved ones. Take these proactive steps in wealth and estate planning to safeguard your legacy and make certain that your wishes are honoured: 

Make a Will or Update your Current Will 

Assets: Provide a comprehensive inventory of your assets, including real estate, investments, and personal property. 

Beneficiaries: Clearly outline who will inherit your assets, as well as the proportionate share of your overall Estate. If you have family heirlooms or items of sentimental nature, consider whether to write these into your will, or have a separate letter of wishes for personal effects. 

Children, Pets & Guardians: The birth of a child, in particular a first child or grandchild, likely warrants a new will.  For parents of minor children, and pet owners, appoint guardians who will provide care and support in your absence. Also consider setting up a trust to hold any interest in the Estate for such child or children until they reach an appropriate age. 

Marital status change: Marriage, separation and divorce, as well as beginning or ending a common law relationship, are also important reasons to revisit your will. 

Executor: Choose a reliable and appropriate executor and name an alternate executor to oversee the distribution of your assets in accordance with your wishes. Make sure your executor knows where to find your will and assets. 

Charitable Donations: If philanthropy is close to your heart, include provisions for charitable donations in your will.

Powers of Attorney

POA for Personal Care: Appoint an individual responsible for making determinations regarding your healthcare, nutrition, living arrangements, clothing, hygiene, and safety in the event you lack the capacity to make these decisions independently. 

POA for Property: Appoint an individual to manage your financial affairs, covering everything from bill payments and managing debt to handling investments and property transactions in the event you lack the capacity to make these decisions independently.  

Managing Assets Outside of your Will (Not Included in your Estate)

Life Insurance: Review and update life insurance policies to align with your current financial situation and protect your loved ones. Designate beneficiaries to ensure the life insurance proceeds can be distributed without the need for Probate. 

TFSA and RRSPs: Strategically manage Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) to maximize tax advantages and review the designated beneficiaries.  

Joint Accounts: With a joint bank account comes the right of survivorship. This means that when one of the account owners passes away, the surviving owner will take full ownership of the account. In theory, the bank account will not form part of the deceased’s estate since the surviving owner has full legal title to the account through the right of survivorship.  

Joint Tenancy: A joint tenancy creates a right of survivorship, which means that if one party dies, their interest is automatically transferred to the surviving tenant(s). 

If you have more than one adult child, and only name one of them jointly on your accounts or other assets like properties, be mindful of how this may impact the distribution of your estate and its potential consequences on family dynamics. If you are a business owner, own multiple properties, or if you are in a second marriage with children from previous marriages, speak to a Wills & Estates Law professional who will help guide you with your specific needs. By taking these proactive steps and deliberate measures, you can be confident that your loved ones will be well-provided for in the future.