9 steps to your estate plan

Estate planning doesn’t have to be done all at once. We break it down into steps. Estate planning: A guide to protecting your legacy »

Step 1: Asset List

Go through your home (inside and out) and make a list of all items worth $100 or more. Then add the non-physical assets you own, such as bank accounts, investment accounts and insurance policies. This is your asset list.

Step 2: Debt List

Next, list all your outstanding debts, such as mortgages or auto loans, as well as all active credit cards or lines of credit without balances.

Step 3: Membership List

The next list is for all the organizations you are a member of: the CAA auto club, Costco, your health club and your college alumni association. Lawyers will charge $150 or more to notify each association or organization of your death: provide a list, however, and your family can do it for nothing. Moreover, some associations offer life insurance benefits to their members.

Step 4: Name Charities

List the specific charities close to your heart if you want donations made.

Compare the Best Savings Accounts in Canada* >

Step 5: Name Your Beneficiaries

Naming beneficiaries on your registered accounts (such as RRSPs*) and insurance policies ensures the money will be distributed to your heirs directly, which avoids the delay and costs associated with probate. Also, when life events change, such as getting a divorce, remember to update your named beneficiaries.

Step 6: Big Questions

While you should have a professional draft your will, you can start the discussions before you visit your lawyer. Talk to your spouse about how you would like to distribute your estate. If you don’t know where to start, use free online will kits to frame the discussion. This is not about being precise as much as it’s about determining what you know and what you need to find out.

Step 7: Choose Responsible Family and Friends

One of the biggest—and most important—decisions in an estate plan is who will be named as your estate administrator (executor), your power of attorney and the guardian of your children. Pascoe advises his clients to consider appointing different people to different roles. “Appoint a sibling from both the husband’s family and from the wife’s family to be estate trustees—the people who look after the money. Then consider a different person—a natural caregiver—to be the custodian for your children.” The key is to pick competent, trustworthy people, and then to spread out the responsibility.

Step 8: Talk to the Pros

Now it’s time to call in the professionals. If you’re concerned you don’t have enough insurance, contact an insurance provider. To minimize estate taxes, make an appointment with your accountant. If you have no special concerns, an estate lawyer may be able to look after everything. A basic will can cost as little as $500, while a basic estate plan will set you back $1,500 to $2,500. (If your situation is more complicated—for example, you have a family business, or a child with special needs, or you’re remarried—the cost can climb to several thousand dollars.)

Step 9: Review and Update

The most vital components of your estate plan—your will, your powers of attorney, your health directive and your life insurance coverage—need to be reviewed every few years, or whenever you have a major life change.

Compare the Best Savings Accounts in Canada* >

What does the * mean?

Affiliate (monetized) links can sometimes result in a payment to MoneySense (owned by Ratehub Inc.), which helps our website stay free to our users. If a link has an asterisk (*) or is labelled as “Featured,” it is an affiliate link. If a link is labelled as “Sponsored,” it is a paid placement, which may or may not have an affiliate link. Our editorial content will never be influenced by these links. We are committed to looking at all available products in the market. Where a product ranks in our article, and whether or not it’s included in the first place, is never driven by compensation. For more details, read our MoneySense Monetization policy.

Comments Cancel reply

Columns

Why I’m optimistic about the markets in 2025–tariffs or no

This advisor isn’t losing any sleep over the markets. In fact, looking back at 2024 and forward into 2025,...

Why I’m optimistic about the markets in 2025–tariffs or no

A car steering wheel and a bowl of pasta, as symbols of how to get the best auto loan interest rate.

loans

Car loan interest rates: What’s the best Canadians can get?

Car loan interest rates can be as confusing as a complicated recipe, and just as daunting to navigate. This...

Car loan interest rates: What’s the best Canadians can get?

Newcomer to Canada buying their first car at the dealership asking questions of the sales person about getting a car loan.

Newcomers to Canada

Auto loans for newcomers—questions to ask when buying your first car in Canada

Buying your first car in Canada is like any other major purchase. Ask a lot of questions, not just...

Auto loans for newcomers—questions to ask when buying your first car in Canada

A woman using the MoneySense Finder tool at her work-from-home desk

ETFs

Buying ETFs in Canada Tool: The MoneySense ETF Screener

Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...

Buying ETFs in Canada Tool: The MoneySense ETF Screener

Budgeting

What is the Canada Carbon Rebate? Plus, dates and amounts for 2025 rebates

The Canadian government is sending out the last carbon rebate of 2024. See who’s eligible and how much you...

What is the Canada Carbon Rebate? Plus, dates and amounts for 2025 rebates

Canadian woman buying a car, as she learns to manage her money.

loans

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

Learn how to manage your money, understand your earnings, invest wisely and more, from this excerpt of Personal Finance...

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

Save

How much money should I have saved by age 40?

Sponsored By

CIBC

How much money should I have saved by age 40?

Save

How much money should I have saved by age 25?

Sponsored By

CIBC

How much money should I have saved by age 25?

Real Estate

How changes to the Home Buyers’ Plan could affect your down payment

Sponsored By

EQ Bank

How changes to the Home Buyers’ Plan could affect your down payment

FHSA

Unsure about buying a home? Why you should open an FHSA now anyway

Sponsored By

EQ Bank

Unsure about buying a home? Why you should open an FHSA now anyway

9 steps to your estate plan

Step 1: Asset List

Step 2: Debt List

Step 3: Membership List

Step 4: Name Charities

Step 5: Name Your Beneficiaries

Step 6: Big Questions

Step 7: Choose Responsible Family and Friends

Step 8: Talk to the Pros

Step 9: Review and Update

What does the * mean?

Comments Cancel reply

Related Articles

Why I’m optimistic about the markets in 2025–tariffs or no

Car loan interest rates: What’s the best Canadians can get?

Auto loans for newcomers—questions to ask when buying your first car in Canada​

Buying ETFs in Canada Tool: The MoneySense ETF Screener

What is the Canada Carbon Rebate? Plus, dates and amounts for 2025 rebates

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

How much money should I have saved by age 40?

How much money should I have saved by age 25?

How changes to the Home Buyers’ Plan could affect your down payment

Unsure about buying a home? Why you should open an FHSA now anyway

Auto loans for newcomers—questions to ask when buying your first car in Canada