A five-step estate planning checklist

Estate planning is fundamental for managing your wealth and goes beyond your monetary assets. It embodies your values, beliefs and hopes for the future well-being of your loved ones. It is more than just a way to distribute your wealth. It’s also part of your legacy and vision for the ones you love.

Simply put, estate planning is about foresight and consideration. It’s about visualizing a time when you are no longer around and putting things in place to ensure your family or dependents are looked after. By being forward-thinking, you can help prevent legal complications or financial disputes.

Have you thought about estate planning yet? Yes or no, here are the five steps you may want to remember.

Step 1: Identify Your Goals and Wishes

Setting clear objectives for your estate goes beyond simple finances, it also involves your family. If you have kids, you may need to outline who will take care of them if you pass away by selecting someone you trust.

You can also think about what you want to do with your money or assets. Most people detail their wishes in a will that outlines how an inheritance will be handed down to their loved ones. You might also want to make a charitable donation. Think of this as more than a financial gift and as something that celebrates your values in life.

It’s also important to make decisions that reflect your preferences about what your money is used to cover, whether it be end-of-life care or your funeral arrangements.

Step 2: Create a Comprehensive Inventory

Canadians do not typically need to pay estate (or inheritance) taxes when a loved one passes away but will still need to complete a final tax return.¹ This final return could include various payments, so it’s worth putting together a list of all your assets. Catalogue every piece of property, every investment, your bank balance, retirement fund and insurance policy.

You’re not just tallying numbers. You’re charting everything in your life. Cataloguing your assets can give you the chance to see what you’ve achieved, but it also makes it easier for your family and loved ones when you’re gone. They know everything you have and can split up assets based on your wishes.

You may also need to document any outstanding debts or obligations. This helps you understand where you’re at financially so you can leave behind a clean slate. Detailing everything you owe will protect your loved ones from unforeseen financial complications. The last thing they want during a stressful time is to find out you had thousands of dollars in debts hidden away.

By cataloguing everything, you can help make things easier for your family. A life insurance plan can help your family significantly. It is a sound financial strategy that supports your family’s welfare and peace of mind by helping to protect them from potential financial setbacks after you’re gone.

This easy-to-use estate planning checklist from the Canadian government can help you keep track of everything, including buying life insurance.

Step 3: Designate Beneficiaries and Executors

The people or organisations you select as your life insurance beneficiaries reflect your relationships, values and the legacy you want to uphold. It’s a way to celebrate people and causes that resonate with you.

Selecting an executor for your estate is slightly different. This is more of a logistical decision where you entrust your final wishes to someone you can rely on.

You can also assign secondary beneficiaries on a life insurance policy or a secondary executor to your estate to help navigate any unforeseen circumstances.

Make sure to discuss your decisions with the potential beneficiaries and executors. These conversations will ensure they are willing and informed so you can trust your wishes are carried out as desired.

Step 4: Draft Estate Planning Documents

A power of attorney can handle financial and legal matters if you become unable to do so yourself. They are trusted with tasks like managing your bank accounts and paying bills. Like your executor, you should choose someone reliable and trustworthy.

A healthcare directive can help clarify your medical wishes. This document dictates your preferences for medical treatment if you become unable to communicate yourself. You may also want to assign a healthcare proxy to make medical decisions on your behalf.

If you select a proxy, talk about potential scenarios, including life support, resuscitation, pain management and other treatments. This helps them compassionately advocate for your care if required.

Step 5: Review and Update Regularly

Your estate plan is not set in stone. Instead, you need to think of it as a dynamic document. You can adjust parts here and there to match various milestones or changes throughout your life, like having kids or buying a property. You could undertake entrepreneurial ventures you never envisioned when you drafted the first plan. You never know how life will go, so changing your plan if and when things change can be vital.

You can also change the beneficiary (provided the beneficiary is not irrevocable) on your financial accounts, insurance policies and retirement plans. This helps you account for any changes in relationships or your priorities. It may be wise to speak to an attorney to seek advice on any legal implications associated with such changes.

¹https://www.canada.ca/en/revenue-agency/services/tax/individuals/life-events/doing-taxes-someone-died.html (2025)

Foresters and Canada Protection Plan (CPP), and their employees and life insurance representatives, do not provide, on Foresters behalf, financial, estate, legal or tax advice. The information given here is merely a summary of our understanding of current laws and regulations. Clients and prospective purchasers should consult their financial, estate, tax or legal advisor regarding their situation.