Scotia Wealth Management
February 6th, 2025
According to the Scotiatrust Wills and Estate Planning Survey, the main reason respondents cited for neglecting to create a will, appoint POAs or mandataries, or discuss their wishes with loved ones is that they “haven’t gotten around to it yet.” But that doesn’t answer the question of why they aren’t prioritizing these important aspects of estate planning.
Although it may take you out of your comfort zone, there are several reasons to create a clear and detailed estate plan and discuss it with your loved ones.
- To ensure your loved ones understand and respect your wishes:
Your estate plan serves as your voice when you are incapacitated or have passed away. By proactively discussing your wishes with your team of wealth professionals and beneficiaries, the more likely your plan will progress smoothly. - To make it easier on those who are grieving:
Consider the impact on your loved ones if they’re left to make complex financial or logistical decisions while dealing with the emotional toll of loss. - Because a will is not enough:
Remember, a will only takes effect after your death. Other documents, such as POAs for property and personal care, as well as mandate of incapacity (in Quebec), are crucial for managing affairs in situations where you may be incapacitated but still living. Depending on the complexity of your situation and how you want to structure your gifts, you may also want to set up trusts and consider tax and insurance planning.
While creating a legal will is essential for the transfer of wealth, it’s just one part of the process. To be sure your wishes are truly honoured, your financial legacy preserved, and your family is supported, you need a comprehensive estate plan. Moreover, you need to communicate that plan effectively.
The reality is that many Canadians find it uncomfortable to discuss death and finances, leading to avoidance and procrastination. “We are a death-avoidant society,” says Mallory McGrath, Founder & CEO of Viive Planning. “Anything associated with death or aging, we just don’t want to think or talk about it.” Individuals might also have concerns that discussing their aging, end-of-life, or wealth transfer plans will create tension among potential heirs or cause family disputes. But keeping your wishes to yourself only postpones those potential disagreements until after you’re gone — and removes your opportunity to explain your rationale to loved ones.
