Estate planning is the process of organizing your personal, financial, and legal affairs so your wishes are known and respected if you become incapacitated or pass away. It ensures that your loved ones know how to carry out your wishes - and can do so as smoothly as possible.
What is an estate?
Your estate includes everything you own at the time of your death. This can include:
Bank accounts and investments
Real estate and personal property
Vehicles, jewelry, and valuables
Digital assets and online accounts
Debts and liabilities
Your estate becomes the responsibility of your executor (or an appointed administrator) and must be distributed according to your will - or, if you don’t have one, according to provincial laws.
What is an estate plan?
An estate plan is a collection of legal documents and instructions that guide what happens to your estate, dependents, and personal matters in the event of your incapacity or death.
It typically includes (but is not limited to):
A Last Will and Testament - States how you want your assets distributed and who should take care of any dependents.
Power(s) of Attorney - Authorize someone to make financial or health decisions on your behalf if you're unable to.
An asset list - Helps your executor understand what you own and where it’s located. This may include digital assets and instructions on how to access them.
Other personal wishes - Like funeral instructions or gifts to individuals or charities.
Some people may also include trusts or other legal arrangements depending on their needs.
Why is estate planning important?
Creating an estate plan can help:
Reduce stress for loved ones by providing clear instructions
Avoid delays or complications with the probate process
Ensure dependents are cared for by naming guardians
Protect your assets and direct them where you want
Prepare for incapacity, not just death
Without an estate plan, your estate will be settled using the default legal process—which may not reflect your personal wishes.
What happens when someone passes away?
Even for a simple situation, settling an estate can take 12–18 months. Here’s a breakdown of the typical steps involved in the estate settlement process:
Funeral planning and burial arrangements: Plan the funeral and arrange for burial or cremation.
Locating the will: Search the home or check with a will registry to see if there are details about the will available.
Appointment of executor: If there’s no will, the court appoints an “administrator” to handle the estate. Learn about how to appoint an executor.
Grant of probate: Apply for probate if it’s required in your province.
Inventory of assets/liabilities: Gather financial records, monitor mail, and consult family members to determine what’s owned and owed.
List of beneficiaries: Identify everyone named in the will and communicate with them. Learn about
Selling of assets: Sell or transfer ownership of property, valuables, or investments as needed.
Payment of liabilities: Pay off any debts, CRA tax returns, and probate fees.
Administration fees: Cover funeral costs, legal fees, or other professional services.
Distribution of specific gifts and bequests: Fulfill cash gifts or property transfers outlined in the will.
Distribution of the residue: After everything else is complete, distribute the remaining estate to the beneficiaries.
Having a clear estate plan can make each of these steps faster and easier for the people you leave behind.
When should you make an estate plan?
Contrary to popular believes, you don’t need to be wealthy or older to create an estate plan. It’s recommended any time you:
Own property or assets
Have children or dependents
Want to name someone to make decisions if you can’t
Have personal wishes about your healthcare or legacy
Even a simple plan can make a big difference.
How is an estate plan created?
Creating an estate plan generally involves:
Listing your assets - including property, accounts, and digital items
Choosing key roles - like your executor and powers of attorney
Storing your documents safely - and sharing them with the right people
Reviewing and updating - especially after major life events
Online platforms like Willful can guide you through this process step by step.