Life is unpredictable—but your family's financial future doesn’t have to be.

Despite its importance, nearly half of Canadians don’t have a current will¹. This single oversight can create serious emotional stress, legal uncertainty, and financial hardship for your loved ones when they’re already grieving. If you haven't taken the time to prepare a will, you're not alone—but now is the time to change that.

Creating a will is one of the most thoughtful and responsible steps you can take for your family. It’s not just a legal document—it’s a plan for protecting everything you’ve built and ensuring your loved ones are cared for.

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What Is a Will?

A will, or “last will and testament,” is a legal document that outlines how you want your assets—such as property, investments, personal items, and even guardianship of your children—handled after your death. It gives clear, enforceable instructions to your executor and the courts, ensuring your wishes are carried out.

Without a valid will, your estate is considered intestate, which means provincial laws determine how your assets are distributed. This often leads to lengthy delays, higher costs, and outcomes that may not reflect your wishes.

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Why Having a Will Is So Important

The absence of a will can be devastating for families. Consider two scenarios:

Family A – With a Will:

• Assets distributed exactly as intended
• Estate typically settled within 6 to 12 months
• Lower legal and administrative costs
• Children and dependents protected through clear guardianship

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Family B – Without a Will:

• The government decides who gets what
• The process may take 12 to 18 months or more
• Higher legal fees and potential disputes
• Children’s guardianship and inheritance decisions left to the courts

Creating a will gives your family direction, reduces stress during a difficult time, and ensures your hard-earned assets are passed on efficiently and fairly.

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Who Should Have a Will?

The short answer? Everyone.

Whether you're a young adult, parent, homeowner, retiree, or business owner, a will ensures your voice is heard when you're no longer here. You don’t need a massive estate to need a will—you just need people you care about and things worth protecting.

You especially need a will if:

• You’re in a common-law relationship (legal inheritance may not be     automatic)
• You have minor children
• You own property or investments
• You own a business
• You have wishes about who should receive sentimental items or heirlooms

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Common Misconceptions and Mistakes

Despite the importance of wills, many Canadians believe they don’t need one—until it’s too late. Here are three costly mistakes to avoid:

1. “My spouse or partner will automatically inherit everything.”

Not necessarily. In many provinces, common-law partners have no automatic inheritance rights without a valid will.

2. “The court will choose the best guardian for my children.”

Possibly—but not necessarily according to your values. Without a will, you have no say in who cares for your children or manages their inheritance.

3. “I’ll deal with taxes later.”

A lack of planning can lead to unnecessary taxes and fees, potentially costing your heirs tens of thousands of dollars. A will can help minimize this.

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The Financial Impact of a Will

Canadian households are wealthier than many realize. As of 2024, the average household net worth was over $1 million, and the average home value exceeded $700,000². Even middle-income families often accumulate significant assets over time.

Creating a will—typically costing under $1,500—is a small investment that protects hundreds of thousands of dollars in value.

And it’s not just about homes or bank accounts. A proper will accounts for:

• Digital assets (crypto wallets, social media)
• Family heirlooms and collectibles
• Small businesses
• Intellectual property (e.g., books, art, copywrite or patents)

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A Will Is Just the Beginning: Advanced Estate Planning for Wealthy Families

For families with significant assets, a basic will is only the starting point. Advanced estate planning tools—such as trusts, tax-efficient giving strategies, and cross-border planning—can help you:

• Reduce taxes and probate costs
• Protect family wealth for future generations
• Support charitable causes
• Ensure privacy and avoid public probate proceedings

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Why Trusts Matter

Trusts can offer greater control and protection over how and when your assets are transferred. They are especially useful for families looking to preserve wealth, minimize taxes, and avoid probate. In Canada, trusts generally fall into two broad categories: inter vivos trusts (created during your lifetime) and testamentary trusts (created through your will and activated upon death).

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Inter Vivos Trusts (Living Trusts)

These trusts are established while you are alive and can help with tax planning, asset protection, and probate avoidance.

• Family Trusts
      Commonly used to transfer wealth to children or grandchildren while retaining control. They can help shield assets from marital breakdowns, lawsuits, or beneficiaries who may not be financially responsible.
• Alter Ego and Joint Partner Trusts
      Available to individuals aged 65 or older, these trusts allow you to transfer assets into the trust while still maintaining control. They are often used to avoid probate, streamline estate administration, and maintain privacy.
   
  • Alter Ego Trusts are for individuals.
   
  • Joint Partner Trusts are for couples and allow both spouses or partners to benefit from the trust during their lifetimes.

Testamentary Trusts

These are created through your will and only come into effect upon your death. They can provide long-term control over inheritance, such as staggered distributions for beneficiaries, or ongoing support for a dependent with special needs. They also offer some tax advantages in certain scenarios.

Example: A family trust can allow you to pass wealth to your children while protecting those assets from marital breakdowns or poor financial decisions.

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Tax Planning and Minimizing the Estate’s Burden

Planning your estate means planning for taxes. Without a strategy, your heirs may face:

• A deemed disposition of assets at death, triggering capital gains taxes.
• Large tax bills on cottages, vacation homes, or investment properties.
• The need to liquidate assets just to pay tax liabilities.

Strategies Include:

• Gifting assets during your lifetime.
• Charitable giving (e.g., securities, donor-advised funds) to reduce taxes.
• Using life insurance to offset taxes payable by the estate.

Without proper planning, your estate may face a significant tax bill due to the ‘deemed disposition’ of assets at death. Strategies like gifting assets or using insurance can help offset these costs.

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Cross-Border and International Considerations

If you have foreign property, dual citizenship, or heirs living abroad, your estate plan becomes more complex. Key issues to consider:

• Exposure to U.S. estate tax if you or your heirs are U.S. citizens.
• The need for cross-border wills that align with local and foreign legal systems.
• Coordinating Canadian and foreign documents to avoid conflicts.

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Family Communication and Legacy Planning

Beyond legal documents, a successful estate plan is also an emotional one. Families should:

• Hold family meetings to discuss intentions and reduce confusion.
• Consider ethical wills or legacy letters to share stories and values (not legally binding).
• Educate heirs on financial literacy and their future roles.

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Avoiding Common Pitfalls

Even with a will in place, oversights can cause problems:

• Disinheriting children unintentionally through joint ownership or outdated beneficiaries.
• Forgetting to update your will after a divorce, remarriage, or birth of a grandchild.
• Overlooking blended family dynamics, which can lead to disputes.

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Work with a Professional Team

A thoughtful estate plan is a collaborative effort. Your lawyer, accountant, and financial professional should work together to:

• Ensure your will aligns with your investment strategy.
• Plan for liquidity needs to avoid forced asset sales.
• Minimize taxes while maximizing your legacy.

Coordinating your will with your tax and investment strategies ensures your wishes are achievable and tax-efficient.

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Estate Planning Checklist

Here’s a quick reference to ensure your estate plan is on track:

• Have you inventoried all assets—including digital and foreign?
• Are your beneficiary designations current?
• Have you considered trusts for vulnerable or minor heirs?
• Have you planned for taxes and liquidity?
• Have you communicated your wishes with your family?

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We Can Help You Get Started

At Matco Financial, we believe true financial planning includes protecting what you've built. Our portfolio managers work with you to create a comprehensive estate strategy tailored to your values, your family, and your goals.

Whether you're creating your first will or reviewing an existing one, we help ensure that:

• Your assets go where you intend
• Your loved ones are protected
• You reduce taxes and legal fees

Let’s take this important step together. Because protecting your legacy shouldn’t be left to chance.

Sources

• ¹Angus Reid Institute (2023). Half of Canadians don’t have a will. Many younger Canadians are putting off estate planning altogether.
  https://angusreid.org/canada-will-testament-intestate-dying-without-will
• ²The Financial Post (2024). Canadian households were worth more than $1.025M in 2024.
  https://financialpost.com/wealth/canadian-households-worth-more-million-2024