Our most commonly used estate planning documents trusted by users around the world every single day.
Step 1
Power of Attorney
A Power of Attorney is a document which gives another party the legal authority to act on your behalf in order to manage your legal and financial affa...
Step 2
Last Will & Testament
A Last Will and Testament allows you to specify how you would like your property and assets divided after your death.
Step 3
Personal Directive
A Living Will or Health Care Directive allows you to specify your health care treatment preferences should you no longer be able to make medical decis...
Last updated May 10, 2023
Written by
Jasmine is a professional writer, editor, and SEO specialist with over five years of experience in content creation and digital marketing. In 2018, she completed her Bachelor of Communi...
Reviewed by
Ngaire King is Legal Counsel for LawDepot. Ngaire has been working in the legal field for over five years and was called to the bar in Alberta in 2020. Before becoming a lawyer, Ngaire ...
|
Fact checked by
Rebecca Koehn has been working in content creation and editing for over ten years and search engine optimization for over five years. Koehn is the Content Marketing Manager for LawDepot...
Whether you have a large or small estate, creating a plan for its distribution after your death will save your loved ones from the grief of wondering what to do.
Though, estate planning isn’t just about dealing with your legacy after death.
Imagine yourself incapacitated—unable to speak or make sound decisions. Do you have someone lined up to manage your finances or family affairs? Does that person have a set of clear instructions to follow when acting on your behalf?
This guide takes you through a step-by-step process for planning your estate. From creating a Last Will and Testament to delegating agents that respect your wishes, we break down the essential documents you’ll need for creating an effective estate plan.
Nearly everyone has an estate, even if it’s just one bank account.
Your estate consists of everything you currently own: your house, car, possessions, money—and, yes, even your debts. You must consider all of these things when creating your estate plan.
Estate planning is the process of determining the maintenance, management, and distribution of your assets when you pass away or become incapacitated.
Whether you’re single or married, have a few assets or a wealthy business, everyone can benefit from an estate plan. The documents in your estate plan will be crucial for your beneficiaries and estate administrators. By creating your estate plans early, you can:
Each person’s estate plan will be unique to their situation and desires. However, the following items are examples of the “must-haves” of a typical estate plan:
To achieve these estate planning goals, you can use these legal documents:
We’ll go through each of these documents in more detail later on. We’ll also discuss complementary documents that you can add to your estate plan. The more information there is for those representing you, the easier it is for them to quickly and accurately adhere to your wishes.
So let’s get started.
Take a step back and look at what you’ve achieved so far in your life. How do you want people to take care of you as you age? What do you want to happen to your assets once you’re gone? Who do you need to take care of?
Having focused goals for your estate plan to accomplish will help you draft the proper documents. For example, common estate planning goals include:
Once you’ve identified goals, you’ll need to figure out how your estate can achieve them and what legal hurdles may stand in the way.
Typically, a Last Will and Testament is the first document people add to their estate plan. But, before planning to distribute your assets, you’ll need to know what you’re working with.
Once you settle any outstanding debts and distribute specific gifts, your residuary estate (i.e., the amount of assets, property, and money leftover) is what you can distribute to your beneficiaries. Before writing a Last Will and Testament, it can help to estimate your residuary estate.
Estate administrators will use your assets to clear any outstanding debt before passing on any inheritances. As such, it’s important to keep your debt in mind when anticipating how much you can leave to others.
Debt can include:
Assets are anything you own that has financial value. In your estate plan, you can leave your assets to your beneficiaries after you pass away.
Compile a list of your physical and financial assets and weigh them against your debt.
Physical assets include material things, such as:
Financial assets include things that may not have a physical form and can be readily converted into cash, such as:
Make a note of anything you wish to give to a beneficiary specifically. This helps ensure it won't be sold to cover any outstanding debts you may have.
After creating a list, subtract your total debt from the full value of your assets. The remainder is what you have left to distribute to beneficiaries in your Last Will and Testament.
Remember that this value can change as your financial situation changes, which is why it’s important to update your Will after gaining or losing a significant amount of wealth.
In addition to clearing your debts, estate administrators will pay applicable taxes, funeral costs, and probate fees. As such, it’s good to have a sense of the estate tax laws in your province or territory for a clearer estimate of your estate.
Provincial and territorial governments regulate the distribution of a deceased person’s estate, and these laws can vary by jurisdiction. For example, Ontario charges an estate administration tax (calculated as a percentage of the estate’s total value), while other provinces may charge a flat probate fee.
Finally, your representatives will need to file a federal tax return for your last year of life. Keep in mind that there are multiple sources of taxable income that may apply after death.
In some cases, the income tax after death may add up to be more than probate costs. To reduce the taxes and other fees payable at death, consider talking with an estate lawyer. You may be able to manage your assets to maximize the amount that goes to your beneficiaries.
To learn more about the laws that govern estates in your jurisdiction, you can read the following legislation.
Estate Administration Act, and the Wills and Succession Act
Wills, Estates, and Succession Act
The Wills Act and the Family Property Act
Devolution of Estate Act, the Wills Act, and the Probate Court Act
Wills Act, and the Probate, Administrations, and Guardianship Rules
Wills Act
Wills Act and the Probate Act
Wills Act and the Probate, Administrations and Guardianship Rules
Estates Act, and the Succession Law Reform Act
Probate Act
Succession Duties Act and the Civil Code of Quebec
Administration of Estates Act
Estate Administration Act
A Last Will and Testament allows you to control the distribution of your estate after you pass away. It's the document in your estate plan with the most authority. Probate courts (the segment of the court system that handles wills and estates) use your Last Will as a guide when settling your estate.
A Last Will is also the document you need to appoint a guardian for your minor children, set aside money to care for any pets you leave behind, and leave assets to your beneficiaries.
If you have high-valued property or a significant amount of assets, a Living Trust and Pour-Over Will may better suit your needs.
A Last Will and Testament helps keep control of your estate in your hands and ensure that your wishes are met after you pass away. It also ensures that your minor children end up in the care of the guardian you choose rather than someone appointed by the government.
Without a Last Will, your estate gets distributed according to the estate laws of your province or territory.
If you die intestate (i.e., without a valid Will) the government appoints a personal representative to oversee the distribution of your estate. Keep in mind that any person with an interest in your estate can apply to the court for this role.
Furthermore, court administrators distribute your assets by following a predetermined formula. Inheritances typically go to your surviving family members, regardless of whether you had an amicable relationship with them or not.
If you die intestate and have no living relatives, the government collects your property.
The executor of your estate is the person you appoint in your Last Will and Testament to carry out your final instructions. This person is legally bound to administer your Will.
Choosing the right executor may be challenging, but it’s a crucial decision because your executor bears a large responsibility on your behalf. This person should be someone you trust, who understands their duties and is willing to act as your personal representative. You can appoint your spouse, a friend, a relative, or a professional (like your lawyer or accountant) to be your executor.
An executor’s duties may include:
While a Last Will gives instructions for managing your affairs after you pass away, a Power of Attorney (POA) gives someone the authority to manage aspects of your estate while you’re still alive.
In this case, your appointed representative (also called an attorney-in-fact or agent) can make decisions about your finances, property, business, and more on your behalf. Although, if you don’t want to grant general authority, you can specify which powers your attorney-in-fact has.
A Power of Attorney can be either ordinary or enduring. An Ordinary POA ends on a specified date or if you become mentally incapacitated, while an Enduring POA ends when you die.
A Power of Attorney is particularly helpful when you:
Choosing your attorney-in-fact is just as important as choosing the executor of your Will. This is because your attorney-in-fact can have considerable decision-making power over matters concerning your estate.
In most jurisdictions, your attorney-in-fact will have legislated duties, including the duty to make decisions that protect your best interests.
To learn more about the laws that govern POAs in your jurisdiction, you can talk to a lawyer or refer to the following acts.
A Health Care Directive, also known as a Personal Directive or Advance Directive, allows you to document your preferences for medical treatments and decisions. Documenting your medical preferences is essential if an emergency situation or a debilitating disease were to leave you incompetent or incapacitated.
The truth is that life is unexpected. For instance, a traffic collision could occur suddenly and leave you seriously injured. On the other hand, you could get diagnosed with a mental illness, such as dementia, that takes years to claim your cognizance. In any case, having a Health Care Directive will ensure your wishes are followed.
Use LawDepot’s Health Care Directive to specify your ideal treatments when the unexpected happens:
You can also use your Directive to give someone the authority to make medical decisions on your behalf. By appointing a representative, you get the chance to talk about your medical preferences with someone you trust before it’s too late.
Depending on your jurisdiction, you may need a separate form such as a Representation Agreement or a Power of Attorney for Personal Care to appoint a substitute decision-maker.
Use LawDepot’s Health Care Directive template and we’ll provide the forms required to appoint a medical proxy in your province or territory. This way, you can take care of all your healthcare planning in one go.
A Health Care Directive outlines the types of medical care you want if you’re in a terminal condition, permanent coma, or persistent vegetative state. The types of medical care you may want if in these conditions include:
If you use your Health Care Directive to appoint a personal representative, the form will also contain their details and contact information. This is so medical personnel know how to contact the person you’ve entrusted to make decisions on your behalf during an emergency.
To learn more about the laws that govern health care planning in your jurisdiction, you can refer to the following legislation.
Imagine planning one last party to celebrate yourself—except this isn’t a birthday party, it’s your funeral. Yes, funerals can be depressing, but they don’t have to be. Writing an End-Of-Life Plan is your chance to edit the final chapter in the story of your life.
You can save your loved ones some trouble when they’re already grieving your loss. Use our template for an End-Of-Life Plan to quickly and easily outline your wishes for funeral services and what to do with your remains.
This is an opportunity to get creative. Is there a special way you want your family and friends to send you off into the spirit world? Do you want to donate your organs? What final things do you want to say? Our template prompts you to include all this and more, making it easier on the people trying to manage and close your estate during an otherwise difficult time.
Think about these things in advance so your family doesn’t have to worry about it:
With the four documents we’ve previously mentioned, you’ve now built a strong foundation for your estate plan. What’s next? Well, that’s up to you.
No matter what other goals you have in mind for your estate plans, LawDepot is here to help you achieve them. We have documents that can help you transfer property, plan for emergencies, take care of your kids, and more.
Gifting a large sum of money or transferring the ownership of property? Use a Gift Deed Form to document the bequest.
In this case, the items or money you gift are no longer a part of your estate. As such, you can use a Gift Deed to keep family heirlooms or other precious treasures from being contested in your Last Will and Testament. Unlike with a Will, you can use a Gift Deed to transfer items to people while you’re still alive.
Keep in mind that if you make a gift to a registered charity in Canada you may be eligible to claim non-refundable tax credits.
In an increasingly uncertain world, Just-In-Case Instructions are a wonderful way to maintain peace of mind. This document contains all the information about you and your estate that someone would need to take care of a wide range of tasks on your behalf.
Some of the useful information your Just-in-Case Instructions can include are as follows:
Not only are these instructions handy in an emergency, but they can also be invaluable to the personal representatives that you appoint in your estate plans.
With kids, you never know when the next accident might happen. Make it easier for a caregiver to give consent to emergency treatments by signing a Child Medical Consent form. In this case, a babysitter, family member, or any other temporary guardian can get your child the care they need when you’re unavailable.
This document also contains important health information and medical histories for your kids. This way, health care professionals can quickly assess the situation and act when needed.
Organizing your documents helps guarantee the smooth execution of your estate plans when the time comes.
Gather important documents such as:
Put this paperwork in a safe place alongside your estate planning documents. If you have files stored digitally, be sure to keep instructions for locating these files.
Above all, let your personal representatives know where to find this paperwork. An organized estate plan with supporting paperwork can assist you and your representatives when proving ownership or relationship changes, or when dealing with other challenges to your estate.
It’s a good idea to give copies of your estate plans to your personal representatives because it helps them understand and execute their responsibilities.
However, it’s crucial to store the original copy of each document in a safe place. In some instances, authorities will only accept the original document and not a copy (e.g., a Last Will and Testament). You can store your estate plans in a safety deposit box, trustee company, bank, or a locked filing cabinet in your home.
Don't forget to tell your representatives the codes or combinations to access the documents. You may also wish to include a list of passwords for your digital accounts, such as:
Your situation is bound to change as the years pass by. So too may the goals you wish to achieve with your estate plan. That’s why it’s important to revisit your plan from time to time and make sure it’s up to date.
A plan that doesn’t reflect your current needs will have limited effectiveness. You should update your estate plan after major life events, such as:
Your estate plans are unique to you. They’re the blueprints of the legacy you want to leave behind. Now, make it happen.
Create unlimited customized legal documents
Securely save your documents and access them any time
Call our free help center with technical support questions
These documents can help you go the extra mile with your estate and health care planning needs.
Revocation of Power of Attorney
A Revocation of Power of Attorney is used to revoke or cancel an existing Power of Attorney.
Codicil
A Codicil modifies, removes, or adds clauses to an existing Last Will and Testament.
End-of-Life Plan
An End-of-Life Plan outlines your wishes for after your death, including how you want your body to be dealt with and whether you want services in your...
Just-In-Case Instructions
Describe your everyday life so family or friends can handle your affairs in case of an emergency. Your Just-in-Case Instructions guard against the unk...
Personal Care Profile
Ensure your interests, beliefs, and health requirements are respected by caregivers with a Personal Care Profile. Quickly communicate vital personal d...