Talking about money at the end of life is an important part of planning ahead. Clear financial directions can reduce confusion, delays, and stress for loved ones. This page outlines key financial considerations and steps to help you plan ahead.
Creating a will
A will is a legal document that sets out how your assets should be distributed after your death. It can also name an executor, the person responsible for carrying out your wishes.
If you die without a will, provincial law will determine how your estate is distributed. This can create delays and may not reflect your wishes.
If you don’t already have a will, it may still be possible to create one now. It doesn’t have to be elaborate; a bit of basic planning can make things easier for those you care about.
Options for your will
You can create a will with a professional or by using a ready-made kit or online service.
Professional support
A lawyer or estate professional can help ensure your will meets the requirements in your province or territory. This option is often recommended if you have complex assets, blended families, or specific wishes.
Do-it-yourself will kit or online tools
DIY will kits can be purchased in retail stores, and online tools are also available. They can be a lower-cost option for straightforward situations, but it’s important to follow instructions carefully and ensure the will is properly signed and witnessed.
Before choosing a kit, check that it’s valid in your province or territory, aligns with current laws and regulations, and meets the witnessing requirements where you live.
People who can act on your behalf
You can appoint trusted people to manage personal care and financial matters if you become unable to do so yourself due to death or incapacity.
Powers of Attorney
While you are alive, you can grant Powers of Attorney to someone you trust, allowing them to manage your financial affairs if you become incapable. This can include tasks like paying bills, managing bank accounts, or handling investments or property, and, in some cases, making personal care decisions such as health care or living arrangements.
Depending on your province or territory, there may be separate Powers of Attorney for financial and personal care decisions.
If you don’t appoint Powers of Attorney, your next of kin may have to go through a legal process before they can manage your finances or care.
Executor
After your death, an executor is the person responsible for administering your estate. Duties may include filing final tax returns, paying outstanding debts, and distributing assets according to your will.
An executor also arranges probate, a legal process that confirms the will is valid and gives the executor authority to administer the estate. Probate requirements vary by province.
Choosing the right people
When selecting someone to act as your Power of Attorney or executor, choose someone willing and able to take on the responsibility. Speaking with them in advance can ensure they understand what the role involves. Some people choose the same person for both roles, while others choose different people.
You may also wish to name someone to manage or close online accounts, digital files, and social media after your death. This may or may not be the same person who serves as your Power of Attorneyand/or executor. Learn more about digital legacy planning.
Documenting your estate
A clear record of your assets makes it easier for your executor to manage your estate.
Create a simple list that includes:
- financial institutions and account numbers
- insurance policies
- property ownership documents
- investment accounts
- debts or liabilities
Updating this list annually or semi-annually can prevent confusion later.
Distributing your assets
Your will outlines how your assets should be distributed. In it, you name the people or organizations who will receive your property, money or other belongings.
Some assets, including life insurance policies and registered accounts with named beneficiaries, may pass directly to named beneficiaries. Confirm that beneficiary designations on your accounts match your wishes and align with the instructions in your will.