The Seven Sins of Estate Planning
- Jeff Greenfeld
- Oct 6
- 2 min read
Updated: Oct 7

1. Not having a valid will in place
The first of the seven sins of estate planning is not having a will in place. According to Angus Reid, half of Canadians do not have a will. Dying without a will in Canada means your assets will be distributed according to provincial laws, and not necessarily your wishes. Not having a will also means someone needs to apply to the courts to become an Administrator – it can be a lengthy and costly process, adding stress for loved ones left to deal with the estate.
2. Inappropriate choice of executor/trustee
An executor should be someone who has the ability and time to deal with the estate. Many people appoint their adult child or children but fail to consider if they have the desire or skill set or suitable to take on the role.
3. Overlooking sentimental value
If your estate includes sentimental items such as a family cottage, leave clear instructions for their distribution. Do not leave it up to the executor to decide. If you have something smaller such as a collection of dishes, you can always deal with it outside the will or refer to a memorandum of articles in the will. Items identified in a will are subject to probate, and it can be difficult to obtain an estimate of value for these ‘sentimental’ items.
4. Lack of care in registered products
Registered accounts in BC such as RRSPs, RIFs, and TFSAs can bypass a will but failing to name a beneficiary subjects them to probate fees and potentially significant taxes. It is always best to name a beneficiary inside the registered instrument itself.
5. Blended family challenges
If your estate plan includes a blended family, a life insurance policy with irrevocable beneficiaries can help guarantee that children receive their intended inheritance, reducing the risk of accidental disinheritance.
6. Simplification of asset distribution
Naming beneficiaries on specific assets ignores the fluctuation of asset values and tax consequences, meaning some children inherit high-value assets that appreciate, and others inherit liquid assets that diminish by estate taxes. One solution is to have a life insurance policy specifically structured to cover estate taxes. By ensuring a tax-free payout to the estate or directly to the children, life insurance could provide the necessary liquidity to balance the inheritance. Alternatively, naming all children as equal beneficiaries of the estate, rather than designating specific assets for each, would ensure an equal inheritance for all.
7. Overlooking Healthcare and financial issues while you are alive
If you become unable to manage on your own one day, Representation Agreements and Powers of Attorney (POAs) ensure someone can manage your health, personal care, financial and legal matters on your behalf, and align with your personal wishes and reduce family conflict and stress.
Don't be one of the 50% of Canadians without a will. Your spouse and/or children will already have a hard enough time emotionally, never mind having to navigate probate and distribution of your assets. Don't be a sinner - plan your estate carefully! Contact me today to get started on your estate plan!
[A special thanks to Eleanor Chan from Sterling Notary in assisting me on some of the points]
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