FRP Step # 5 - Estate Planning

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Hello everyone, and welcome back. Today, we’re tackling the fifth and final step in the Fundamental Retirement Plan (FRP) - Estate Planning.

This step is about more than just having a will. It’s about making sure everything you’ve worked hard for passes smoothly to the people and causes you care about, while minimizing stress, taxes, and confusion.

In this post, we’ll cover:

• The core documents every estate plan should include

• The disconnect that can happen with a “transactional” approach to legal counsel

• How the choices you made back in step one of the FRP trickle down into step five

• A crucial but often-overlooked strategy that can make life much easier for your spouse or executor

• And finally, a few action items you can start on right away

What Estate Planning Really Looks Like

At its foundation, estate planning consists of the big four:

• A Will – the cornerstone of your estate plan.

• A Living Will/Advanced Health Care Directive – to outline your medical wishes if you can’t speak for yourself.

• Powers of Attorney (POA) – to appoint someone you trust to handle decisions if you can’t.

• Trusts – which can help with tax planning, asset protection, or bypassing probate.

But that’s just the start. A full estate plan goes further. It looks at how your assets are titled, your gifting and charitable strategies, tax optimization, and even the consolidation of accounts to reduce headaches for the next generation.

Where Things Often Go Wrong

I’ve read hundreds of wills over the years. And while I’m not a lawyer, I often find gaps that don’t line up with a family’s intentions.

A few examples:

• Beneficiaries don’t match the will. A registered account or insurance policy left directly to a child may bypass probate, but it can leave the estate holding the tax bill.

• Gifts aren’t documented. A down payment given years earlier to one child, if not reflected in the estate plan, can create unfair distributions later.

• Digital assets are ignored. Without instructions, your executor may not be able to access online accounts, photos, or crypto.

These things happen because many people only see a lawyer transactionally, when they buy a house or when they “get a will done.” There often isn’t a long-term relationship that allows the lawyer to really understand your family and your finances.

I want to be clear,  I’m not knocking lawyers. There are excellent specialists who do a fantastic job. But like any profession, there are generalists too. The key is to make sure your estate documents are drafted by someone who understands your unique circumstances, ideally working in tandem with your financial planner.

Beyond the Basics

Once the key documents are in place, here are a few other areas worth reviewing:

• Charitable Giving. You can donate cash, set up a donor-advised fund, or gift securities directly. That last one is powerful: if you gift stocks or mutual funds “in kind,” you not only get the donation tax credit, you also avoid capital gains tax.

• Trusts. These aren’t for everyone, but in some cases they can protect assets, provide privacy, or simplify transfers. High-income earners may also use them for income splitting.

• Taxes & Probate. From property ownership to corporate shares, everything needs to be reviewed so your heirs aren’t left with surprises.

• Consolidation of Accounts. This is the overlooked gem. Having 15 or 20 accounts spread across institutions can be a nightmare for your executor. Simplifying now is one of the kindest things you can do for your loved ones.

Why This Matters for Everyone

Estate planning isn’t just for the wealthy. Whether you’re passing along a modest estate or a more complex one, you need a plan. Otherwise, your wishes may not be followed, and your family could face unnecessary stress, taxes, and delays.

Remember: every financial decision you make, investments, income planning, tax choices, flows through to your estate. Estate planning ties it all together.

Action Items for You

1. Review your will. If you don’t have one, or if it’s been three years (or a major life change) since your last update, take care of it now.

2. Use professionals. Don’t cut corners with online forms. Work with legal counsel who understands your finances, and include your financial planner in the conversation.

3. Simplify. Consolidate accounts and documents to make things easier for your spouse or executor.

This wraps up the five steps of the Fundamental Retirement Plan:

1. Investment Allocation

2. Income Planning

3. Tax Planning

4. Health Care Planning

5. Estate Planning

Together, these steps form a roadmap to retire with confidence.

In the next post, I’ll walk you through our onboarding process, what happens in the first day, week, month, and year of working with our team.

Until then, don’t leave your estate to chance. Put a plan in place that reflects your goals and protects the people you love.

And hey, when it comes to your retirement, don’t take chances. 

Make a plan so YOU can retire with confidence.

All comments are of a general nature and should not be relied upon as individual advice. The views and opinions expressed in this commentary may not necessarily reflect those of Harbourfront Wealth Management. While every attempt is made to ensure accuracy, facts and figures are not guaranteed, the content is not intended to be a substitute for professional investing or tax advice. Please seek advice from your accountant regarding anything raised in the content of the podcast regarding your Individual tax situation. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.