All About Estates
By Dave Madan
October 2nd, 2025
One Clause or Designation Can Derail an Estate Plan
Recent decisions from the British Columbia Court of Appeal have underscored how fragile an estate plan can become when a Will is ambiguous, or when life insurance and beneficiary designations conflict with the testator’s broader intentions. These cases remind us that estate planning isn’t just about having a Will, it’s about making sure the pieces are consistent, coherent, and defensible.
Practical Implications for Families and Advisors
These recent judgments deliver important lessons:
- Clarity is paramount. Ambiguous or unusual clauses can generate litigation.
- Beneficiary designations are powerful. An irrevocable designation may override a Will. Executors must check insurance contracts and policy provisions.
- Coordination is critical. Wills, life insurance, registered accounts, trusts, and separation agreements should be reviewed together.
- Periodic review is essential. Old clauses or designations can create unintended outcomes as life circumstances change.
- Professional advice helps. In complex or high-value estates, a lawyer, trust officer, or corporate executor can provide impartial guidance.
Avoiding Pitfalls
Families can reduce risk by:
- Using clear, conventional language in Wills and powers of attorney.
- Reviewing beneficiary designations regularly, especially after major life changes.
- Seeking legal advice before making or revoking an irrevocable designation.
- Ensuring all documents, including Wills, trusts, insurance, and separation agreements, are consistent.
- Considering a corporate executor or trustee to avoid conflicts.
The best protection is clarity, coordination, and regular review. If it has been years since you last reviewed your estate documents or beneficiary designations, now is the time.
Estate disputes rarely arise from money alone. They are often triggered by conflicting instructions, unclear drafting, or overlooked provisions. The BC Court of Appeal cases [cited in this article] show how one unusual clause or one designation can derail an estate plan.
Dave Madan, Senior Manager, Scotiatrust
