Planning ahead matters, even if you’re young, healthy, and just starting out
Estate planning sounds like something for retirees with big portfolios, right? Not so fast. If you have a job, a bank account, digital assets, or even a pet, you already have an estate. And if something unexpected happens and you don’t have an estate plan, decisions about your money, belongings, and even your health will be made by the courts, not your loved ones.
Estate planning is about clarity, and making sure your assets are managed and distributed the way you want them to be. Starting early ensures your wishes are protected long before you need them.
Essential steps
1. Create a will
Your will isn’t just for who will get your assets and belongings, it names who will handle your affairs. If you don’t have one, these choices will be made for you automatically according to the law.
Note: While DIY wills or templates may seem convenient, they often leave room for ambiguity. A professionally prepared will ensures your intentions are clearly documented and legally sound.
2. Choose an executor (liquidator in Quebec)
An executor (known as a liquidator in Quebec) is someone you choose to ensure your wishes are carried out. This person will be responsible for protecting, administering and distributing the assets of your estate, so you should pick someone who can manage paperwork and communicate well.
Note: When choosing someone to be your executor (liquidator in Quebec), speak with them first to make sure they know what’s involved, and are prepared to accept the role.
3. Appoint a power of attorney
If you’re ever unable to make decisions, a Power of Attorney (a protection mandate in Quebec) lets someone you trust manage your finances and property or healthcare. It’s about control, not giving up independence.
Note: If you become incapacitated and you don’t have this in place, someone needs to come forward and apply to the court to be appointed to manage your assets. In the interim, the government may take on this role.
4. Plan for digital assets
Your online life matters. Be sure to include social media, crypto, streaming accounts and other digital assets in your plan. Make a list of accounts and instructions for access, and outline what you’d like to happen to these intangible assets if you die or become incapacitated.
Note: Without planning, digital wealth can become permanently inaccessible.
5. Consider beneficiaries
Update beneficiary designations on your bank accounts, TFSAs and RRSPs. In Quebec, it is common practice for beneficiaries to be named in the will. These often override your will. Even if you don’t have a spouse, or kids, beneficiaries can be friends, godparents or even charities.
Note: As you go through major life changes, be sure to review or update your beneficiaries accordingly.
Special situations to think about
- Pets: Who will care for them? You may want to appoint a pet guardian and outline funds for care in your will.
- Shared housing or leases: What happens if you’re gone?
- Unique assets: Account for newer investments like NFTs and collectibles and be aware of the potential tax implications.
Get a head start
Life changes quickly, and starting early means fewer headaches later, when your assets are larger. And it’s easier than you think when you work with a professional. With a few simple steps, you can protect your assets and your peace of mind.
We can help
Reach out to us for personalized advice and support to create an estate plan tailored to your situation.
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