The Two Estate Documents Most Canadians Miss
- 5 days ago
- 3 min read
When people think about estate planning, the first things that usually come to mind are a Will, Power of Attorney and Health Care Directive.
These are incredibly important documents and should be reviewed every five years or whenever there is a major life event.
But in our experience working with Canadian retirees, it's often not the documents people have that cause issues, it's the ones they don't have.
At our firm, we follow a process called the Fundamental Retirement Plan, which focuses on five core planning areas: investment planning, income planning, tax planning, health care planning and estate planning.
All of these areas are connected, and decisions made in one area often impact the others. Without a coordinated approach, you don't really have a plan, you have a collection of accounts, documents, and ideas that may or may not work together when it matters most.
When we review estate plans, we often find gaps between what people think will happen and what will actually happen when they pass away.
That's why we walk clients through what their estate would look like at first passing and last passing, based on their assets, accounts, property and overall financial structure.
While a will outlines how your assets are distributed, it doesn't capture all the practical details your family or executor will need during a very difficult time. This is where the first commonly missed documents comes in: the Letter of Instruction.
A Letter of Instruction is a document that outlines your financial information, account details, key contacts, and important personal information that your executor and family will need if something happens to you. It helps your family understand what you have, who to contact, and how to begin handling your estate. This document alone can save your family an enormous amount of stress and uncertainty.
The second document we recommend is an Executor Checklist. Many people name an executor but never explain what the role involves. In reality, being an executor can be significantly responsibility, and most people who are named have little to no experience handling an estate. An Executor Checklist helps guide them through the process, timelines and responsibilities so they have a roadmap during a challenging time.
Estate planning isn't really about paperwork.
It's about removing uncertainty.
It's about reducing stress.
and it's about giving your family clarity when emotions are already high.
We spend our lives building and planning for the future, but this is one area where a small amount of effort today can have a lasting impact long after we're gone.
The greatest gift you can leave behind is not just what you've built, but how thoughtfully you've prepared it for the people you love.
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.