← Estate Planning

End-of-Life Financial Planning

Critical forms and arrangements to protect your family's inheritance

Without proper planning, your family could lose 30-50% of your estate to:

  • • Probate fees and legal costs
  • • Deemed disposition taxes (capital gains on death)
  • • Frozen accounts and delayed access to funds
  • • Family disputes and court battles

Critical Forms to Complete NOW

1. Beneficiary Designation Forms

These override your will. If you don't name beneficiaries, these accounts go through probate and your family waits months for access.

Must have beneficiaries on:

  • ✓ RRSP/RRIF accounts
  • ✓ TFSA accounts
  • ✓ FHSA accounts
  • ✓ Life insurance policies
  • ✓ Pension plans (if applicable)

Where to get forms: Contact your bank, investment firm, or insurance company. Most can be completed online or at a branch.

2. Joint Account Arrangements

Adding a joint owner to bank accounts can help avoid probate, but be careful — there are tax and legal implications.

Two types of joint ownership:

Joint with Right of Survivorship (JTWROS): When you die, the account automatically goes to the surviving joint owner. Avoids probate.

Tenants in Common: Your share goes through your estate (probate applies).

⚠️ Warning: Adding an adult child as joint owner can trigger immediate tax consequences and may expose your money to their creditors or divorce. Consult a lawyer first.

3. Transfer on Death (TOD) Designations

Important: TOD designations are common in the US but not widely available in Canada for most accounts.

What works in Canada instead:

  • • Beneficiary designations (RRSP, TFSA, FHSA, insurance)
  • • Joint ownership with right of survivorship
  • • Trusts (for complex estates)

Some investment firms may offer TOD-like features for non-registered accounts — ask your advisor.

4. Power of Attorney (Financial & Health)

If you become incapacitated before death, someone needs legal authority to manage your finances and make medical decisions.

Two types you need:

Power of Attorney for Property (Financial): Manages bills, investments, property.

Power of Attorney for Personal Care (Health): Makes medical decisions if you can't.

→ Read full Power of Attorney guide

5. Will (Last Will and Testament)

Your will covers everything not already designated (real estate, personal property, non-registered investments).

Die without a will? Provincial intestacy laws decide who gets what. Your spouse may not get everything, and your kids' inheritance could be tied up for years.

→ Read full Wills guide

Tax Consequences at Death

Deemed Disposition

When you die, the CRA treats it as if you sold all your assets at fair market value. This triggers capital gains tax on:

  • • Non-registered investment accounts (stocks, ETFs, mutual funds)
  • • Real estate (except principal residence)
  • • Rental properties
  • • Cottages and vacation properties

Example: You bought a cottage for $200,000. It's now worth $500,000. Your estate owes capital gains tax on $300,000 gain (50% taxable = $150,000 added to final tax return).

Exceptions:

  • • Assets left to a spouse or common-law partner (tax-deferred rollover)
  • • Principal residence (usually tax-free)

Document Organization Checklist

Keep these documents in a secure, accessible location and tell your executor where to find them:

Legal Documents:

  • □ Will (original + copy)
  • □ Power of Attorney forms
  • □ Marriage certificate / divorce papers
  • □ Birth certificates

Financial Documents:

  • □ Bank account statements
  • □ Investment account statements
  • □ Life insurance policies
  • □ Property deeds
  • □ Pension information
  • □ Tax returns (last 3 years)

Beneficiary Forms:

  • □ RRSP beneficiary forms
  • □ TFSA beneficiary forms
  • □ FHSA beneficiary forms
  • □ Insurance beneficiary forms

Other:

  • □ Funeral/burial wishes
  • □ Digital asset passwords
  • □ Contact list (lawyer, accountant, advisor)

Action Steps

  1. 1. Review all registered accounts (RRSP, TFSA, FHSA) and confirm beneficiaries are up to date
  2. 2. Get a will drafted (lawyer or online service like Willful)
  3. 3. Set up Power of Attorney for finances and health care
  4. 4. Organize all important documents in one secure location
  5. 5. Tell your executor and Power of Attorney where everything is
  6. 6. Review and update every 3-5 years or after major life changes