Wills by Zoom? How Ontario’s Probate Reforms Could Impact You

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Wills by Zoom? How Ontario’s Probate Reforms Could Impact You

Adapting Your Estate Plan: Navigating Ontario’s 2025 Probate Reforms

Estate planning is not a one-and-done task—it’s a living process that must evolve alongside your life, your relationships, and the law. In 2025, Ontario introduced a series of probate law reforms that significantly reshape how wills and estate documents are created, interpreted, and enforced. These changes are more than legal housekeeping—they’re a signal to revisit and, if necessary, revise your estate planning documents.

Here’s what you need to know—and why it matters beyond Ontario’s borders.

Key Changes in Ontario’s Probate Legislation

Virtual Witnessing of Wills and Powers of Attorney Made Permanent

What began as a temporary pandemic response has now been cemented into law. Wills and Powers of Attorney (POAs) can be signed and witnessed virtually in Ontario, provided certain safeguards are met:

  • The signing must happen in real time via audiovisual technology.
  • At least one of the witnesses must be a licensed Ontario lawyer or paralegal.
  • Counterpart copies can be used and compiled as one complete document.

Why it matters: This update improves access for individuals in remote areas, those with mobility challenges, or anyone for whom in-person meetings are difficult. While other provinces, such as British Columbia and Alberta, allowed similar temporary measures during the pandemic, Ontario is among the first to formalize this option. Expect other jurisdictions to watch closely or follow suit.

Marriage No Longer Revokes a Will

Historically, Ontario followed a common-law principle: marriage automatically revoked any existing will unless the will was made in contemplation of that marriage. This rule often resulted in people unintentionally dying intestate, particularly in cases of second marriages or blended families.

As of 2025, this is no longer the case. Wills now remain valid after marriage unless the individual actively revokes or updates them.

Why it matters: This brings Ontario in line with several other provinces (including Alberta and British Columbia), where marriage does not void an existing will. It reduces the risk of accidental intestacy, but it also reinforces the importance of proactive planning. If you’ve recently married or remarried, your estate plan should be reviewed—not because the law demands it, but because your intentions might have changed.

New Rules for Separated Spouses

Previously, spouses who were separated but not legally divorced often retained inheritance rights under Ontario’s Succession Law Reform Act. This led to unintended outcomes and, in some cases, significant family disputes.

Now, if spouses have been separated for at least three years, or have a formal separation agreement or court order, they are treated similarly to divorced spouses. Their automatic entitlements under a will or intestacy are revoked.

Why it matters: This shift better reflects modern family structures and provides greater clarity around spousal entitlements. Provinces such as British Columbia and Saskatchewan have also made strides in redefining estate rights for separated spouses, signalling a national trend toward clearer boundaries in estate law.

Court Authority to Validate ‘Imperfect’ Wills

Ontario courts now have the discretion to validate wills that don’t meet strict formalities, as long as there is sufficient evidence that the deceased intended the document to serve as their will. This includes documents with missing witness signatures, unsigned drafts, or even digital notes in some cases.

This is commonly referred to as the “substantial compliance” rule and aligns Ontario with provinces like British Columbia and Alberta, where similar provisions have been in place for several years.

Why it matters: This provides a safety net when technical missteps occur—but it’s not an excuse for sloppy drafting. A will that’s been professionally prepared, properly signed, and safely stored is still the gold standard. This reform simply gives the court more flexibility when the intent is clear but the form is flawed.

Implications for Ontarians—and Beyond

These probate reforms offer more than technical updates. They represent a modern, flexible, and more realistic approach to estate planning. But they also come with new expectations. With increased flexibility comes greater responsibility to ensure documents are up-to-date, clearly written, and properly executed.

Even if you don’t live in Ontario, these changes are part of a broader shift happening across Canada. Other provinces are actively exploring or adopting similar updates, particularly around:

  • Digital and remote execution of documents
  • Recognition of digital wills
  • Fair treatment of separated and blended families
  • Court discretion in recognizing testamentary intent

If you’re living in a different province, it’s still worth reviewing your plan to ensure that your documents reflect your current wishes—and meet your local requirements.

A Legacy Worth Protecting

Estate planning isn’t about paperwork—it’s about protecting your people, preserving your values, and avoiding unnecessary conflict down the road. Legal probate reforms like those introduced in Ontario in 2025 are reminders that life changes, laws evolve, and your estate plan must keep up.

At NEXsteps, we support individuals and families through all stages of the estate process—from planning and preparing to administering and settling. As a Certified Executor Advisor, I work alongside legal and financial professionals to help ensure your estate strategy is complete, current, and legally sound.

Whether you’re updating a will, responding to a life event, or just want to be sure you’re not leaving a mess behind, let’s talk. Your legacy is worth protecting.

Visit our online store  for programs and guides or contact us for a personalized solution.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

What Happens If You Never Adapt Your Estate Plan?

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
What Happens If You Never Adapt Your Estate Plan?

Adapt Your Estate Plan: Protect What Matters Most

From changing tax laws to evolving family dynamics, adapting your estate plan ensures it still reflects your values—and your wishes.

Why do you need to adapt your estate plan? Most people create an estate plan with good intentions—often during a major life milestone like marriage, retirement, or after the birth of a child. But many never revisit those documents. Years—or even decades—can pass, and while life changes, their estate plan doesn’t.

That’s a problem.

When your will, powers of attorney, or trust arrangements no longer reflect your current relationships, financial situation, or the law, it can lead to unnecessary taxes, confusion, and family conflict. Adapting your estate plan as life evolves isn’t just a good idea—it’s essential to protecting the legacy you’ve worked hard to build.

Why It’s Crucial to Adapt Your Estate Plan

Your estate plan is a snapshot in time—of your relationships, your financial position, and your values. But as we all know, life doesn’t stand still. Marriage, divorce, the arrival of grandchildren, or a significant change in your assets can render portions of your plan outdated or irrelevant.

Outdated documents can also create confusion for executors, spark disputes among beneficiaries, or result in higher tax liabilities than necessary. That’s why regular reviews are not just recommended—they’re essential.

Key Moments to Revisit Your Estate Plan:

  • Marriage, divorce, or common-law relationship changes
  • Birth or adoption of children or grandchildren
  • Changes in residency (especially between provinces)
  • The death or incapacity of an executor or beneficiary
  • Business sales or significant asset acquisitions
  • Shifts in tax law or government policy
  • Sale or purchase of significant assets

Even if none of these events have occurred, it is wise to review your plan every 3–5 years. Laws shift, especially around taxation and trusts. Your family’s needs and relationships may change more subtly—but just as meaningfully.

Real-Life Example: The Outdated Trust That Backfired

Paul, a small business owner in Saskatchewan, created a will in 2011 that included a testamentary trust for his two teenage sons. At the time, this structure allowed the estate to benefit from graduated tax rates, minimizing the tax burden on their inheritance.

But in 2016, federal tax rules changed. Testamentary trusts—except those classified as Graduated Rate Estates within the first 36 months—became subject to the top marginal tax rate. Paul never updated his plan or sought advice. When he died in 2021, the trust remained in place, but it no longer offered the tax advantage it once had.

The outcome? Thousands more in taxes were paid, and the complexity of administering the trust caused delays. A simple review and adjustment could have made a significant difference.

Tax Trends That Could Affect Your Plan

While Canada doesn’t levy a traditional estate or inheritance tax, death can still trigger major tax events. Upon death, most assets are considered “disposed of” at their fair market value—a process known as deemed disposition. This can lead to capital gains taxes on:

  • Secondary properties (e.g., cottages or investment real estate)
  • Non-registered investment portfolios
  • Business shares or private investments

Registered assets like RRSPs and RRIFs are also fully taxable unless rolled over to a spouse or financially dependent child. And while the capital gains inclusion rate remained at 50% between 2009 and 2025, tax laws do shift. For example, as shown in Paul’s story above, testamentary trust rules were overhauled in 2016. Keeping your plan current ensures you (and your estate) aren’t caught off guard.

Family Dynamics: One Size No Longer Fits All

The “nuclear family” model no longer applies to many Canadians. Today’s families are blended, diverse, and often complex. That means your estate plan needs to be more intentional than ever.

  • Common-law relationships are not always recognized in the same way as marriages, depending on the province.
  • Children from previous marriages can be unintentionally left out if a will is not carefully worded.
  • Estranged or dependent adult children may need special provisions—or clear exclusions to avoid legal disputes.
  • Loved ones with disabilities might benefit more from a trust than a direct inheritance.

Being clear and specific in your documents—and reviewing them regularly—can save your family heartache and legal expense later on.

Tips for Keeping Your Plan Aligned With Your Life

  1. Schedule a review every 3–5 years, or immediately after a major life event.
  2. Consult a tax advisor annually—especially after federal budgets or new legislation is introduced.
  3. Use trusts or planning tools strategically, especially for privacy, tax deferral, or family protection.
  4. Keep executor and beneficiary designations current, including on registered accounts, pensions and insurance.
  5. Use professionals strategically, including estate lawyers, tax advisors, and Certified Executor Advisors, to ensure your plan works in practice, not just on paper.
  6. Communicate your wishes—don’t leave your executor and family guessing.

A Legacy Worth Protecting

An estate plan is more than paperwork. It’s the legal expression of your wishes, your care for others, and the legacy you want to leave behind. But even the best plan can become outdated without attention. Changing tax laws, evolving relationships, or forgotten details can undo years of thoughtful preparation.

At NEXsteps, we help individuals and families adapt their estate plans so they stay aligned with real-life circumstances—not just legal requirements. As a Certified Executor Advisor, I bring practical, compassionate guidance to every conversation—whether you’re updating a will, preparing as an executor, or navigating the complexities of estate administration.

Because protecting what matters most starts with keeping your plan alive, not just legal. Reach out or book your consultation for compassionate, knowledgeable support.

Visit our online store  for programs and guides or contact us for a personalized solution.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

Incapacity Planning: What Happens If You Can’t Decide?

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
an empty chair in a sunlit room symbolizing being unable to speak for yourself

The Growing Importance of Incapacity Planning

As our population continues to live longer, with life expectancies now stretching well into the 80s and beyond, the conversation around aging is increasingly turning to more than just retirement savings and long-term care. One of the most urgent and overlooked aspects of later life is incapacity planning—the process of legally preparing for the possibility that you might one day be unable to make decisions for yourself due to illness, injury, or cognitive decline.

This is not just a matter for the elderly. Accidents, strokes, or early-onset dementia can affect adults at any age. But with dementia diagnoses projected to impact nearly 1 million Canadians and approximately 8.4 million Americans  by 2030, the time to prepare is now.

Why Incapacity Planning Matters More Than Ever

When someone loses the ability to manage their personal, legal, or financial affairs, it can throw a family into chaos. Without the proper documents in place, loved ones may face lengthy court processes to establish guardianship or trusteeship—often during an already stressful and emotional time.

Unfortunately, many people do not have powers of attorney or personal directives in place, leaving their families vulnerable to legal confusion, emotional conflict, and financial mismanagement.

💡“If you don’t choose who will speak for you, the court may have to,” says Nancy Boisvert, a Certified Executor Advisor and founder of NEXsteps. “And that decision may not align with your wishes or your family dynamics.”

A Real-Life Cautionary Tale

Consider the case of Joan, a retired teacher in her early 70s who was widowed and living independently in Alberta. Her two adult children lived in different provinces. Joan had never completed an Enduring Power of Attorney or Personal Directive, believing she was still “too young to worry about that.”

When Joan was diagnosed with early-stage Alzheimer’s, her condition rapidly progressed. Within a year, she was unable to manage her finances or communicate complex decisions. Her children disagreed about the best course of care and how to manage her home and investments. With no legal decision-makers appointed, they had to apply for guardianship and trusteeship through the courts—a process that took several months, cost thousands of dollars in legal fees, and strained their relationship permanently.

By the time decisions could be made, critical financial deadlines had passed, and Joan’s home had deteriorated in value. Worse, her care was delayed because no one had clear authority to act on her behalf.

Unfortunately, Joan’s situation is not unique.

What Does Incapacity Planning Involve?

Incapacity planning involves creating legal documents that authorize trusted individuals to make decisions on your behalf if you’re no longer able to do so:

Enduring Power of Attorney (POA):

This allows a person you trust (your “attorney”) to manage your financial and legal affairs. It remains valid even if you become mentally incapable.

Personal Directive (or Advance Healthcare Directive):

This document appoints someone to make personal and medical decisions, such as where you will live, the kind of care you receive, and life-sustaining treatment preferences.

Wills and Mental Capacity:

A will can only be created or amended by someone who has mental capacity. Once a person loses that capacity—due to dementia, injury, or illness—they can no longer legally draft or revise their will. This makes it crucial to have a valid, up-to-date will in place before any cognitive decline occurs. Without one, your estate may be distributed according to provincial intestacy laws, which may not reflect your wishes.

Risks of Not Having a Plan

Without these tools in place:

  • Families must go to court to gain authority to act, causing delays and legal costs.
  • Disputes can arise between family members or with healthcare providers.
  • There’s a higher risk of financial abuse or misuse of funds, especially when no formal power of attorney is in place.
  • Personal wishes around medical care, housing, or end-of-life choices may not be followed.

Proactive Tips for Incapacity Planning

Start early – Don’t wait for a diagnosis or health scare. Planning while you’re healthy gives you more control and avoids rushed decisions.

Choose your agents carefully – Select people who are trustworthy, available, and capable of acting in your best interests. Consider naming backups in case your original choices are unable to act.

Communicate your wishes – Talk to your chosen agents and your family about your values, healthcare preferences, and expectations. The documents are important—but so is the conversation.

Review and update regularly – Life changes. So should your documents. Review your plan every 3-5 years or after major life events (divorce, death, relocation).

Consult professionals – A lawyer can help you create documents that meet your jurisdiction’s legal requirements. A Certified Executor Advisor can help you think through practical concerns and family dynamics.

Store documents accessibly – Make sure your attorney, executor and healthcare agent know where to find your documents in an emergency. Consider digital backups or services that provide secure access. *Original wills are required, so be sure to keep that document secure.

Start the Conversation Now

As our population ages, the need for incapacity planning is no longer optional—it’s essential. It’s not just about protecting assets; it’s about preserving dignity, reducing family stress, and ensuring your wishes are known and respected when you can no longer speak for yourself.

At NEXsteps, we work with individuals and families to prepare for the road ahead—not just with wills and estate planning, but with personalized guidance around incapacity, aging, and decision-making. Our mission is to ensure you’re ready for whatever the future holds.

Need help getting started with your incapacity planning?

Reach out or book your consultation for compassionate, knowledgeable support. As a Certified Executor Advisor and legacy planning expert, I can guide you through the process and connect you with trusted legal professionals if needed.

Visit our online store  for programs and guides or contact us for a personalized solution.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

The Estate Planning Gap: 85% of Canadians Don’t Have a Plan

Nancy Boisvert NEXsteps
stressed executor and adult child

What Is The Estate Planning Gap?

“Failing to plan is planning to fail.” – Alan Lakein

Simply put, the estate planning gap is the difference between those who should be creating an estate plan and those who actually have one in place. Estate planning is one of those essential life tasks that many Canadians know they should do, but few actually follow through on. In fact, while over 80% of Canadians say they want their families to receive their assets quickly and with minimal stress after their death, only 15% have a formal estate plan in place. This stark contrast reveals a troubling reality: despite good intentions, most Canadians remain unprepared for one of life’s most predictable events.

This disconnect between intention and action is more than just a statistic. It represents a growing risk for Canadian families, and an urgent need for education, preparation, and support.

And the story isn’t much better for our American friends and neighbors: As of 2024, only 32% of Americans have a will or estate plan, marking a 6% decline from the previous year and the first decrease since 2020. This means that 68% of U.S. adults are without a formal estate plan, leaving their families potentially unprepared for the future.

Why the Gap Exists

So why do so many people avoid estate planning?

For some, it’s the belief that estate planning is only for the wealthy. Others feel overwhelmed by legal jargon or are unsure where to begin. Many procrastinate, assuming they have plenty of time. And still others simply find it uncomfortable to talk about death—especially their own.

But estate planning isn’t just about who gets what. It’s about protecting loved ones, avoiding unnecessary legal complications, and leaving a legacy that reflects your values.

The Hidden Causes of the Estate Planning Gap

Why are so many people delaying something so important?

The reasons are surprisingly common:

  • Lack of awareness: Many people don’t understand what estate planning entails. It’s not just writing a will—it includes naming an executor, assigning powers of attorney, planning for taxes, and sometimes creating trusts or making advanced care decisions.
  • Perceived complexity: The process can seem intimidating, especially when legal, financial, and family dynamics are involved.
  • Fear of costs: People worry about the price of legal services or mistakenly believe they can’t afford professional help.
  • Discomfort with death: Talking about mortality is never easy, which leads many to push estate planning to the bottom of the to-do list.

The Cost of Doing Nothing

When someone dies without an estate plan in place, the burden falls heavily on those left behind. Without clear instructions, families can face:

  • Long delays in probate
  • Unresolved family conflict
  • Higher legal fees
  • Court-appointed decisions that may not reflect your wishes
  • Emotional stress at an already difficult time
  • Unintended outcomes—such as estranged relatives receiving assets or minors left without guardianship plans

In short, the absence of a plan can result in confusion, conflict, and financial strain during an already difficult time.

🧾 Real Life Example: Margaret’s Story

Consider the case of Margaret, a retired teacher in Calgary. She had three adult children and often spoke about wanting her home to go to her eldest son, who had cared for her in her final years. But Margaret never formalized these wishes. After her death, her estate—split equally between her children under Alberta’s intestacy laws—sparked resentment and infighting. Her eldest son, who had sacrificed time and income to care for her, felt betrayed by the outcome. The emotional toll lingered long after the estate was settled.

This is the very heart of Canada’s estate planning gap: good intentions left undone.

What a Complete Estate Plan Looks Like

To bridge the gap, we first need to understand what an estate plan actually includes. It’s more than just a will. A full estate plan typically covers:

  1. Will – Outlines how your assets should be distributed and who will be responsible for administering your estate.
  2. Power of Attorney (POA) – Appoints someone to handle financial matters if you become incapacitated.
  3. Personal Directive – Also called an advance care directive, it outlines your healthcare preferences and names someone to make medical decisions on your behalf if you’re incapacitated.
  4. Beneficiary Designations – Ensures RRSPs, TFSAs, pensions, and life insurance policies are directed appropriately.
  5. Guardianship Planning – Identifies who should care for minor children or dependent adults.
  6. Trusts (where appropriate) – Useful for more complex family dynamics, asset protection, or tax planning.

These documents can—and should—be tailored to your specific needs, values, and family circumstances.

Estate planning doesn’t have to be expensive or intimidating. But it does require action.

Closing the Gap Is About Empowering Families

The fact that 85% of Canadians and 68% of Americans haven’t yet created an estate plan is concerning—but it’s also a chance for families to take back control. Estate planning doesn’t have to be complicated, expensive, or something only “wealthy people” do. In reality, it’s one of the most thoughtful steps you can take to protect the people you care about.

At NEXsteps, we work alongside you to simplify the process. Whether you’re starting from scratch or trying to organize your documents and decisions, we guide you step-by-step—helping you feel confident, clear, and in control. You won’t be overwhelmed with jargon or pushed into unnecessary services. We’re here to help you understand your options, get organized, and make informed choices that reflect your values.

This isn’t about legal forms or paperwork—it’s about peace of mind. And with the right support, closing the estate planning gap becomes less of a burden, and more of a gift you give your loved ones.

How To Start Bridging the Gap

You don’t have to tackle it all at once. Start with three simple steps:

Start the Conversation
Talk to your spouse, adult children, or a trusted advisor. Discuss your wishes, goals, and concerns.

Get Organized
Gather information about your assets, debts, insurance policies, and important contacts. This makes the planning process much smoother.

Seek Guidance
Work with professionals such as a lawyer, financial planner, and an estate consultant. Services like NEXsteps help simplify the process by providing support, helping you document your wishes, and preparing you for discussions with legal and financial experts.

Closing the Estate Planning Gap

The gap between what Canadians want and what they’ve done when it comes to estate planning is too wide to ignore. But it’s also fixable. Estate planning is for everyone—not just the wealthy or elderly. It’s a gift of clarity, control, and care for those you love most.

If you’re one of the 85% who doesn’t yet have a plan, you’re not alone—but there’s no better time than now to take that first step. At NEXsteps, we guide you through the process with compassion, clarity, and confidence—so you can plan wisely and live fully.

And remember: estate planning isn’t a one-time event. It should evolve with your life—whether you marry, divorce, have children, lose a loved one, or acquire new assets.

Ready to take action?
Let’s talk. Book a consultation to take the first step in planning with confidence.

Visit our online store  for programs and guides or contact us for a personalized solution.
Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

Privacy, Probate, and a Plan: Why Savvy Canadians Choose Alter Ego Trusts

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
an older man holding a top secret folder with the caption shh.. the estate planning shortcut you've never heard of.

The Role of Alter Ego Trusts in Avoiding Probate in Canada

Alter Ego Trusts – an estate planning tool for Canadians 65+ seeking privacy, control, and efficiency

When planning for the future, many Canadians aged 65 and older are turning to alter ego trusts as a strategic tool to simplify estate administration, reduce probate fees, and protect their privacy. Introduced in 2000 under the Income Tax Act, alter ego trusts offer unique advantages—but they also come with responsibilities and limitations. Here’s what you need to know.

What Is an Alter Ego Trust?

An alter ego trust is a type of living trust available only to individuals aged 65 and older who are Canadian residents. The person who creates the trust—known as the settlor—must be the sole person entitled to receive all of the trust’s income and capital during their lifetime. They also typically act as the trustee, maintaining full control over the trust assets.

Unlike a will, which only takes effect after death and must go through probate, an alter ego trust operates during the settlor’s lifetime and continues to function after death, distributing assets to named beneficiaries according to the terms set out in the trust deed—without going through probate.

Key Benefits of Alter Ego Trusts

Avoiding Probate

One of the main reasons older Canadians choose an alter ego trust is to bypass the probate process. Probate can be time-consuming, public, and costly. By transferring assets into the trust during your lifetime, those assets are no longer part of your estate and therefore do not require probate.

Maintaining Privacy

Probated wills become part of the public record. Anyone can access the details of your estate and its beneficiaries. Alter ego trusts offer confidentiality, as they are not subject to the same public scrutiny. This makes them especially appealing to those who value discretion in how their affairs are handled.

Continuity and Control

Because you remain the trustee during your lifetime, you retain complete control over the assets. You can buy, sell, or transfer trust assets as needed. You can also name a successor trustee to take over upon incapacity or death, ensuring seamless asset management without court intervention.

Potential Tax Benefits

Alter ego trusts are structured to defer capital gains taxes until the death of the settlor. This is different from most trusts, which trigger a deemed disposition of assets every 21 years. For the alter ego trust, that tax deferral can support long-term planning.

Setting Up an Alter Ego Trust: What’s Involved

Establishing an alter ego trust involves several legal and financial steps. Here’s a basic outline:

Step 1: Work with Legal and Financial Professionals

A lawyer experienced in estate planning will draft the trust deed, which outlines the terms, trustees, and beneficiaries. You’ll also want to consult a tax advisor or financial planner to assess any implications on your broader estate and tax strategy.

Step 2: Transfer Assets into the Trust

You can transfer a wide range of assets into the trust, including real estate, investments, and bank accounts. However, RRSPs and RRIFs cannot be held in an alter ego trust.

Note: While there are no immediate tax consequences for transferring assets into an alter ego trust (unlike other trusts), the assets must be legally retitled in the name of the trust. This can trigger land transfer tax, and mortgage lenders may need to be involved.

Step 3: Maintain Proper Records

Because you are still the trustee, it’s your responsibility to keep clear records, file annual tax returns for the trust, and follow the terms of the trust deed.

Considerations and Limitations

While alter ego trusts offer many advantages, they are not suitable for everyone. Consider the following:

  • Costs: Legal and accounting fees to set up and maintain the trust can be a deterrent.
  • Irrevocable Nature: Once created, the trust cannot be undone. Assets in the trust are no longer considered part of your personal estate, even though you still control them.
  • Creditor Protection: Assets in an alter ego trust are generally not protected from creditors if the settlor becomes insolvent.
  • Tax on Death: When the settlor dies, the trust is deemed to dispose of all its assets, potentially triggering capital gains taxes, similar to a regular estate. However, this can be planned for in advance.

Who Should Consider an Alter Ego Trust?

This tool is best suited for:

  • Canadians over 65 with complex estates or high-value assets
  • Those seeking privacy and streamlined administration
  • Individuals concerned about estate challenges or family disputes
  • People with a clear vision of their estate plan and long-term goals

If your main goal is avoiding probate and simplifying the transition of assets, an alter ego trust could be a valuable addition to your estate planning strategy.

Final Thoughts: Planning with Purpose

Alter ego trusts offer a powerful, flexible way for Canadians 65+ to retain control over their assets, protect their privacy, and ease the estate administration burden for loved ones. But they must be set up properly and with professional guidance.

At NEXsteps, we specialize in helping clients explore tools like alter ego trusts within the broader context of estate and legacy planning. While we don’t provide legal or financial advice, we work closely with your professional advisors to ensure your plan reflects your wishes and minimizes complexity for your family.

Ready to explore if an alter ego trust fits your goals?
Let’s talk. Book a consultation to take the first step in planning with confidence.

Visit our online store  for programs and guides or contact us for a personalized solution.
Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

 

The CRA’s Parting Gift: Deemed Disposition and the Final Tax Sting

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Man looking shocked at final tax assessment

Deemed Disposition at Death: What Executors Need to Know

When someone dies in Canada, their tax obligations don’t end—they can, in fact, become significantly more complicated. One of the most important and often misunderstood rules is the deemed disposition of assets at death. This rule can result in a substantial tax bill for an estate, and if you’re an executor, it’s your responsibility to make sure it’s paid.

So what is the deemed disposition tax, and how can it be managed?

What Is Deemed Disposition?

Under the Income Tax Act, when a person dies, the Canada Revenue Agency (CRA) treats most of their capital property as though it were sold at fair market value (FMV) immediately before death. This includes things like:

  • Real estate (other than a principal residence),
  • Non-registered investments (stocks, mutual funds, ETFs),
  • Rental or vacation properties,
  • Businesses,
  • Certain types of personal property with significant appreciation.

This “sale” triggers a capital gain or loss, and 50% of the net gain is taxable on the deceased’s final tax return, known as the terminal return. If there is a significant increase in value over time, the resulting tax bill can be substantial—even if the assets aren’t actually sold.

Assets That May Be Exempt

Not every asset is subject to the deemed disposition:

  • Principal residences may be exempt under the principal residence exemption.
  • Registered assets, like RRSPs or RRIFs, don’t fall under deemed disposition rules—but they may still be fully taxable as income unless transferred to a qualified beneficiary (e.g., a spouse).
  • Tax-Free Savings Accounts (TFSAs) remain tax-free until death, but growth after death is taxable unless designated to a spouse.

Some assets can be rolled over to a surviving spouse or common-law partner tax-deferred, postponing the tax until the spouse sells the asset or dies.

Implications for Executors

As the executor (or legal representative) of the estate, you’re responsible for:

  • Filing the terminal return,
  • Calculating and paying any taxes owing,
  • Making sure the estate has enough liquidity to cover tax liabilities,
  • Communicating with beneficiaries about delays or deductions from inheritances due to taxes.

Failure to manage this properly can result in personal liability if the estate is distributed before all taxes are paid.

Strategies to Reduce the Tax Burden

While you can’t avoid the deemed disposition tax entirely, there are strategies to reduce or defer its impact:

1. Spousal Rollover

If assets are left to a spouse or common-law partner, the tax can often be deferred until their death or disposal of the asset.

Tip: Ensure wills and beneficiary designations are worded correctly to allow for rollover treatment.

2. Use of the Lifetime Capital Gains Exemption (LCGE)

If the deceased owned shares in a qualified small business corporation (QSBC) or qualified farm/fishing property, up to $1,016,836 (2024 amount, indexed annually) of capital gains may be exempt from tax.

3. Estate Freezes and Trusts

High-net-worth individuals may consider an estate freeze during their lifetime to lock in current values and transfer future growth to heirs. Trusts (such as alter ego or joint partner trusts) can also help with deferral and control.

Note: These are complex tools that require legal and tax advice.

4. Gifting During Life

Gifting appreciated assets during life may help reduce the total taxable estate, though it still triggers capital gains at the time of transfer. It can also allow the donor to manage the timing of gains and potentially spread tax over multiple years.

5. Insurance to Cover the Tax

A life insurance policy can provide immediate liquidity to the estate, allowing taxes to be paid without selling off key assets. This is especially helpful for illiquid estates, such as those with businesses or real estate.

6. Proper Record-Keeping

Keep accurate records of adjusted cost base (ACB) and improvements to assets (such as real estate), as these reduce the amount of capital gain calculated at death.

A Real-Life Example

Let’s say Barbara passes away owning a cottage purchased for $150,000 and now worth $800,000. The CRA deems this property sold, triggering a $650,000 capital gain. Half of that—$325,000—is taxable. Depending on the province and marginal tax rates, the tax bill could easily exceed $100,000. If the estate doesn’t have liquid assets, the executor may be forced to sell the property or borrow funds to pay the tax.

What Executors Can Do Now

If you’re currently serving as an executor or anticipate becoming one, here are a few practical steps:

  • Review the deceased’s asset portfolio and identify taxable holdings.
  • Work with a tax advisor or estate accountant early on to estimate liabilities.
  • Hold off on distributing funds until the Notice of Assessment confirms the CRA is satisfied. It is also advisable to wait until you receive the Clearance Certificate from CRA, removing potential future liability.
  • Consider involving a Certified Executor Advisor (CEA) to guide you through complex steps and help liaise with legal and financial professionals.

It’s Complicated—But You’ve Got Help

Deemed disposition at death is one of the most significant tax implications in Canadian estate administration, and many executors are caught off guard by how much is owed—especially if the estate lacks cash flow. Being proactive, informed, and supported by professionals can prevent costly mistakes and reduce stress during an already emotional time.

Need help navigating your role as an executor?

At NEXsteps, we support executors and families with consultation, coordination, and clarity—so nothing gets missed. As a Certified Executor Advisor, I can help you understand the implications of taxes like deemed disposition and guide you in working with your accountant or legal advisor.

Visit our online store  for programs and guides or contact us for a personalized solution.
Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

Digital Probate Made Easy: Lessons from Alberta’s New Online System

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
desk with laptop computer open to a probate application screen. Captioned Probate without the paper cuts

Navigating Alberta’s Digital Probate Process: A Simple Guide for Families

If you’ve recently lost a loved one, you might be facing an unfamiliar and emotional task: managing their estate. One of the first legal steps is often probate — and in Alberta, Canada, there’s good news: the province now offers a modern digital probate process to make things faster and easier. It’s part of a broader movement to make estate administration more accessible and efficient for families.

🌟 Quick Fact:
Alberta’s Surrogate Digital Service is one of the first full-service digital probate platforms in Canada.

Even if you live outside Alberta — or the executor does — understanding how Alberta’s system works can help you appreciate where estate administration is headed. Alberta’s approach may soon influence other jurisdictions in Canada and beyond.

But what exactly does “digital probate” mean? How does it work? And what should you know before starting? Let’s walk through it in simple terms.

What is Probate, and Why is It Needed?

Probate is the court’s official process to validate a deceased person’s will and confirm the authority of the executor (the person named to handle the estate).
Without probate, banks, land titles offices, and other organizations may refuse to release the deceased’s assets.

In short: Probate gives the executor legal power to act on behalf of the estate.

What is Alberta’s Digital Probate Process?

Traditionally, probate applications involved a lot of paperwork — mailing forms to the court, waiting for responses, and managing in-person submissions.
Now, Alberta allows probate applications to be filed digitally through the Surrogate Digital Service (SDS).

The Surrogate Digital Service is an online system where executors, or the lawyers helping them, can:

  • Prepare probate documents
  • Submit them online
  • Receive approvals and grants electronically

It’s designed to make probate faster, more transparent, and less stressful.

Who Can Use the Digital Probate Process?

Currently, you can use the Surrogate Digital Service if:

  • The deceased lived in Alberta at the time of death
  • You have the original signed will
  • The estate is relatively straightforward (no major disputes or complex legal issues)
  • The executor is able to access and use online services
💡 Did You Know?
You don’t have to live in Alberta to serve as an executor for an Alberta estate.

However, you may need to meet additional court requirements, like posting a bond or appointing an agent inside Alberta to assist with estate matters.

**Important: If the will is missing, contested, or there are complicated issues like missing beneficiaries, you may still need to work with the court in person or with a lawyer.

Step-by-Step: How to Navigate the Digital Probate Process in Alberta

Here’s a simple breakdown:

1. Gather the Necessary Documents

Before you start, collect:

  • The original will
  • The original death certificate
  • A complete list of assets and liabilities (property, bank accounts, debts, etc.)
  • Contact information for all beneficiaries

You will need detailed information about the estate to complete the online application. Having a clear list ready — including bank accounts, real estate, vehicles, and outstanding bills — can speed up the online process and reduce the risk of delays.

📌 Pro Tip:
Before starting your digital probate application, create a detailed inventory of the estate’s assets and debts.

2. Create an Account with the Surrogate Digital Service

Visit the Surrogate Digital Service website and create an account.
Executors can complete the forms themselves, or they can authorize a lawyer to do it on their behalf.

3. Complete the Application

The online system will guide you through a series of questions about the deceased, the will, the estate’s value, and the beneficiaries.
It’s important to answer carefully and truthfully — mistakes can cause delays.

📌 Pro Tip:
Save your work as you go. You can come back to it if you need time to find more information.

4. Submit and Pay the Fees

Once your application is ready:

  • Upload scanned copies of the will, death certificate, and any supporting documents
  • Pay the probate fee (based on the value of the estate) online

As of 2025, Alberta’s probate fees range from $35 to $525, depending on the estate size.

5. Wait for Review and Approval

After submission, a court clerk will review your application.
If everything is correct, the Grant of Probate will be issued electronically. If corrections are needed, you’ll receive an email with instructions.

How Long Does the Digital Probate Process Take?

Generally, it takes about 6 to 12 weeks after submitting your application to receive a Grant of Probate, assuming no major issues arise. The digital system helps speed things up compared to traditional paper filing, but processing time can still vary based on court workload and the completeness of your documents.

Common Mistakes to Avoid

  • Incorrect asset values: Double-check property and financial account valuations.
  • Missing information: Make sure all beneficiaries are listed accurately.
  • Using an outdated will: Only the most recent, original signed will can be used.

Taking your time at the beginning can prevent costly delays later.

Should You Get Help?

The digital system is designed to be user-friendly, but it can still feel overwhelming if you are grieving or managing a complex estate.
You might consider getting professional guidance if:

  • You’re unsure about the estate’s details
  • Family tensions could lead to disputes
  • The will is old, vague, or incomplete

A Certified Executor Advisor or a probate lawyer can help ensure everything is completed correctly and ease the burden during a difficult time.

Final Thoughts: Embracing the Future of Estate Management

Alberta’s digital probate process offers a modern, more convenient way to manage estate administration. By understanding the steps and preparing the necessary documents, you can navigate the process more confidently — and focus more on honouring your loved one’s memory than battling paperwork.

If you’re feeling overwhelmed or just want reassurance that you’re doing everything properly, professional advisors like NEXsteps can guide you every step of the way.
Remember: You don’t have to do it alone.

 📚 You Might Also Like:

📂 Top Mistakes Executors Make During Probate (And How to Avoid Them)

📂 Executor Duties in Canada: A Simple Step-by-Step Overview

📂 How to Plan Your Digital Legacy for the Future

 

Visit our online store  for programs and guides or contact us for a personalized solution.
Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

10 Surprising Benefits of Aging You Didn’t Expect

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
A group of 4 older friends sitting around a cozy coffee shop table on an outdoor patio, smiling and laughing. The table is cluttered with coffee cups, saucers, and a few pastries, with a warm, golden sunlight casting a gentle glow over the scene. The friends are dressed in casual, comfortable clothing, and their faces are lit up with genuine smiles and laughter. The background features a charming coffee shop with potted plants and string lights, adding to the cozy and inviting atmosphere. The overall mood is cheerful and heartwarming, capturing the essence of friendship and camaraderie.

The Unexpected Benefits of Aging

When we talk about aging, the conversation often turns to wrinkles, slowing down, or health concerns. But what if we told you there are powerful benefits of aging that deserve just as much attention? From increased emotional resilience to sharper decision-making and stronger relationships, aging can bring unexpected gifts. In this article, we’ll explore the positive side of getting older—and why embracing the process might just be the key to living your most fulfilling years yet.

1. Increased Emotional Resilience

Life experience brings a greater ability to handle challenges. Studies show that older adults tend to be more emotionally stable, able to manage stress more effectively, and less likely to react impulsively to setbacks. This resilience often leads to greater overall happiness and life satisfaction.

2. A Sharper Sense of What Really Matters

With age comes clarity about priorities. Older adults are more likely to invest their time and energy in meaningful relationships and activities, letting go of trivial worries. This wisdom leads to a richer, more fulfilling life focused on what truly brings joy.

3. Stronger Social Bonds

Contrary to the stereotype of loneliness in old age, many older adults experience deeper and more rewarding relationships. They often have long-lasting friendships and a stronger support network, which provides a sense of connection and belonging.

4. Greater Self-Confidence

A lifetime of experiences—both successes and failures—builds a strong sense of self. Many older adults report feeling more comfortable in their own skin, caring less about societal expectations and more about their own happiness.

5. Less Stress About the Little Things

Aging often brings a shift in perspective. Minor annoyances that once seemed significant become trivial, leading to a more relaxed approach to life. Older adults are less likely to sweat the small stuff and more likely to enjoy the moment.

6. A Boost in Decision-Making Skills

Cognitive research suggests that older individuals are better at making decisions based on experience and pattern recognition. While younger people may process information faster, older adults excel at applying wisdom and insight to complex problems.

7. More Free Time for Passions and Hobbies

Retirement or semi-retirement allows many older adults to rediscover interests they may have set aside during their working years. Whether it’s travel, painting, gardening, or volunteering, aging can open doors to new adventures and experiences.

8. Financial Stability

While not true for everyone, many older adults enjoy greater financial stability after years of saving and wise financial planning. Debt is often lower, and assets such as homes and retirement funds provide security and peace of mind.

9. Healthier Lifestyle Choices

As people age, they often become more aware of their health and make conscious efforts to maintain it. Whether through regular exercise, healthier eating, or mindfulness practices, aging can be an opportunity to cultivate better habits.

10. A Legacy to Leave Behind

With age comes the opportunity to reflect on one’s impact. Whether through mentoring, family traditions, or charitable work, older adults often find great satisfaction in passing on wisdom, values, and experiences to younger generations.

Embracing the Upside of Aging

As we grow older, it becomes clearer that life isn’t just about what we’ve done—it’s about what we leave behind. Whether it’s the wisdom we share, the connections we nurture, or the practical steps we take to prepare for the future, aging gives us the opportunity to shape a meaningful legacy. That’s where intentional planning comes in. Having a plan in place isn’t just for your peace of mind—it’s a gift to your loved ones, helping them navigate the future with clarity and confidence.

Aging may be inevitable, but the way we approach it makes all the difference. Instead of focusing on what’s lost, recognizing and embracing the unexpected benefits of growing older can lead to a more fulfilling, joyful, and meaningful life. After all, aging isn’t just about adding years to life—it’s about adding life to years.

At NEXsteps, we specialize in supporting individuals and families through legacy planning and estate administration. With Certified Executor Advisor (CEA) credentials and extensive experience in navigating life transitions, we’re here to ensure your final wishes are clear, legally sound, and thoughtfully prepared. Whether you’re just starting to think about your legacy or need help managing an estate, we’re ready to help you take the next step with purpose.

Visit our online store  for programs and guides or contact us for a personalized solution.
Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

Legacy Planning Mistakes That Could Cost Your Family Big

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
hourglass with sands running out and faded family pictures in the background

The Biggest Mistakes People Make When Planning Their Legacy

Legacy planning is more than just writing a will—it’s about ensuring that your wealth, values, and final wishes are honored in a way that benefits your loved ones. However, many people make critical mistakes that can lead to unnecessary stress, financial loss, and even family disputes. Here are some of the most common legacy planning mistakes and how to avoid them.

1. Not Having an Estate Plan at All

One of the biggest mistakes is failing to create an estate plan in the first place. Many people assume they are too young, don’t have enough assets, or that estate planning is only for the wealthy. However, without a will or trust, your estate will be subject to intestacy laws, meaning the government decides how your assets are distributed. This can lead to unintended consequences, such as estranged family members inheriting your assets or loved ones receiving less than you intended.

How to Avoid This Mistake:

Start the estate planning process as soon as possible, regardless of your age or net worth. A basic will, power of attorney, and healthcare directive can provide essential protection for your loved ones.

2. Failing to Update the Plan

Creating an estate plan is not a “set it and forget it” task. Life changes—marriages, divorces, births, deaths, and financial shifts—can all impact your legacy plan. If your estate documents are outdated, your assets may not be distributed according to your current wishes.

How to Avoid This Mistake:

Review your estate plan every few years or whenever a major life event occurs. This ensures that your beneficiaries, executors, and asset allocations remain aligned with your intentions.

3. Not Planning for Incapacity

Many people focus solely on what happens after their death and neglect to plan for what happens if they become incapacitated. Without a power of attorney or healthcare directive, your family may have to go through a lengthy and costly legal process to manage your finances or make medical decisions on your behalf.

How to Avoid This Mistake:

Establish a durable power of attorney for financial matters and a healthcare directive to outline your medical preferences. These documents ensure that someone you trust can act on your behalf if you are unable to make decisions.

4. Overlooking Beneficiary Designations

Assets such as life insurance policies, retirement accounts, and bank accounts with payable-on-death designations pass directly to the named beneficiary, regardless of what your will says. Failing to update these designations can result in unintended recipients receiving your assets.

How to Avoid This Mistake:

Regularly review and update beneficiary designations on all financial accounts, especially after major life changes like marriage, divorce, or the birth of a child.

5. Ignoring Tax Implications

Poor estate planning can lead to significant tax burdens for your heirs. Many people fail to consider estate taxes, capital gains taxes, or inheritance taxes, which can reduce the value of the assets passed on to loved ones.

How to Avoid This Mistake:

Consult an estate planning professional or financial advisor to understand the tax implications of your estate. Strategies such as gifting, trusts, and charitable donations can help minimize tax liabilities.

6. Not Communicating Your Wishes

A well-crafted estate plan is only effective if your loved ones understand your intentions. Many families face disputes or confusion because the deceased never discussed their legacy plan with them.

How to Avoid This Mistake:

Have open conversations with your family about your estate plan. Let them know where important documents are stored and discuss your reasoning behind key decisions to prevent misunderstandings.

7. Choosing the Wrong Executor or Trustee

Selecting the wrong person to handle your estate can lead to delays, mismanagement, or even legal disputes. Family members who are not financially responsible or who have conflicts of interest may not be the best choice for the role.

How to Avoid This Mistake:

Choose an executor or trustee who is responsible, organized, and impartial. If necessary, consider appointing a professional fiduciary or estate attorney to manage your estate.

8. Failing to Protect Assets from Creditors or Lawsuits

Without proper planning, your assets may be vulnerable to creditors, lawsuits, or even long-term care expenses. This can reduce the inheritance available to your heirs.

How to Avoid This Mistake:

Use legal tools like trusts, asset protection strategies, and proper insurance coverage to safeguard your wealth from potential claims.

9. Assuming Family Will Handle Everything Fairly

Many people assume their family will distribute assets fairly and amicably. Unfortunately, disagreements and emotions can lead to major conflicts, resulting in legal battles and fractured relationships.

How to Avoid This Mistake:

Clearly outline asset distribution in legally binding documents and consider using a trust to provide structured inheritance management. A neutral third party, like a trustee or mediator, can also help resolve disputes.

10. Not Considering Long-Term Care Costs

A major oversight in legacy planning is failing to account for potential long-term care costs, such as nursing home expenses or home care. These costs can quickly deplete your assets, leaving little to pass on to your heirs.

How to Avoid This Mistake:

Explore long-term care insurance, Medicaid planning, or other financial strategies to cover potential care expenses without eroding your estate.

Leave a Legacy, Not a Mess

Legacy planning is about more than just dividing assets — it’s about making thoughtful, intentional choices that reduce confusion, minimize conflict, and reflect your values. By avoiding these common mistakes, you can leave behind clarity and comfort for the people you care about most.

At NEXsteps, we understand how complex legacy planning can be, and we’re here to help you every step of the way. As a Certified Executor Advisor, NEXsteps brings the expertise and compassion needed to guide you through the process with confidence. Whether you’re just getting started or reviewing an existing plan, we’re here to help you turn your wishes into a well-executed plan that supports your loved ones long after you’re gone.

Take the time to review your estate plan, communicate with your family, and seek professional guidance to ensure your legacy is preserved the way you intend.

Visit our online store  for programs and guides or contact us for a personalized solution.
Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

 

 

Estate Administration Mistakes: What Executors Need to Know

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
a woman at a desk with a small stack of paperwork and a couple of outstanding bills, looking frustrated and overwhelmed

The Top 3 Estate Administration Mistakes Executors Need To Know

Administering an estate is often more complicated than people expect, and three estate administration mistakes consistently top the list of common issues. Even with a clear will and a well-thought-out estate plan, unexpected issues can arise that cause delays, disputes, and financial stress. If you’ve ever taken on the role of executor, you know it’s so much more than just reading a will and handing out assets. It’s a process filled with paperwork, legal requirements, financial accountability, and often, unexpected challenges.

Whether you’re an executor now or planning ahead to make things easier for your loved ones, knowing what can go wrong is half the battle. Let’s take a closer look at three of the most common estate administration pitfalls and how to avoid them.

The Mystery of Missing Assets

One of the biggest headaches an executor can face is tracking down all of the deceased’s assets. You might think everything is accounted for—there’s a house, a car, some bank accounts—but what about that old life insurance policy they forgot to mention? What about the safety deposit box no one knew existed? What about digital assets—cryptocurrency, online investments, or even sentimental items stored in the cloud?

Unfortunately, if the deceased didn’t leave an organized record of their assets, the executor is left playing detective. This process can be time-consuming and frustrating, and if assets go undiscovered, beneficiaries could lose out on their rightful inheritance.

“My father had a small savings account in another province that we had no idea about. We only found out about it a year later when we received a statement in the mail. By then, the estate had already been settled, and getting access to those funds was a nightmare.” – Mark S.

So how can this be avoided? The best solution is preparation. If you’re planning your own estate, create a master document that lists everything—bank accounts, investments, real estate, insurance policies, and even digital assets like email or social media accounts. Keep it somewhere safe but accessible to your executor. If you’re an executor yourself, take your time. Review past tax returns, check unclaimed property databases, and notify financial institutions of the death to uncover any hidden assets. The more thorough you are, the fewer surprises down the road.

The Ticking Time Bomb of Debts and Taxes

A common misconception is that when someone dies, their debts simply disappear. Unfortunately, that’s not how it works. Before any inheritance can be distributed, the estate must settle outstanding debts and taxes. And here’s where things can get tricky. If debts or taxes are overlooked, it can lead to serious legal and financial consequences.

Imagine this: You, as the executor, start distributing assets to the beneficiaries, only to later discover a sizable unpaid tax bill or a creditor demanding payment. Now, you’re in a tough spot—how do you recover those funds from beneficiaries who may have already spent them? You could be held legally responsible.

“We thought everything was settled until a tax bill from the previous year showed up. By that time, the estate funds were already distributed, and we had to scramble to come up with the money. It was an expensive lesson.” – Susan R.

To prevent this nightmare, executors should first obtain a credit report for the deceased to identify all outstanding debts. It’s also a good idea to publish a notice to creditors in a local newspaper, which gives creditors a set time frame to come forward with claims. On the tax side of things, consulting a professional is key. A final personal income tax return must be filed, and depending on the estate’s value, estate taxes or probate fees might also come into play. The key takeaway? Don’t rush the process. Ensuring that all debts and taxes are accounted for before distributing assets will save a lot of headaches and potential legal liability down the line.

Family Feuds Over Inheritance

It’s a sad reality that money can bring out the worst in people. Even in the closest families, emotions run high when it comes to inheritances. Maybe one sibling feels they deserve more, or another is upset that sentimental items weren’t divided fairly. Perhaps the will is vague, leaving room for interpretation—and disagreement. These disputes can escalate quickly, sometimes even leading to legal battles that drain the estate and fracture family relationships permanently.

“My mother’s will didn’t specify who would get her jewelry collection. My sister and I ended up fighting over it for months, and it created a rift in our relationship that still hasn’t fully healed.” – Emily L.

So, how do you prevent an inheritance from turning into a battleground? The key is clarity and communication. If you’re making your own estate plan, make sure your will is as detailed as possible. Specify who gets what, and if you’re making unequal distributions, explain why. It may also be helpful to discuss your decisions with your family ahead of time to manage expectations. If you’re an executor handling a contested estate, transparency is your best friend. Keep meticulous records, communicate openly with all beneficiaries, and consider mediation if tensions start to rise. Sometimes, having a neutral third party can prevent conflicts from turning into costly court battles.

Final Thoughts

Administering an estate is not just about distributing assets—it’s about navigating a complex process while managing emotions, legal obligations, and financial matters. Losing track of assets, failing to account for debts and taxes, and dealing with family disputes are some of the most common pitfalls that can make estate administration a stressful experience.

The good news? Most of these problems are preventable with proper planning. If you are looking for someone with experience to guide you through the process, read out to NEXsteps. With Certified Executor Advisor certification and real-life experience in these matters, we can help.

Whether you’re setting up your own estate plan or serving as an executor, taking a proactive and organized approach can make all the difference. A little preparation now can save your loved ones from major headaches later—and ensure that your legacy is carried out exactly as you intended.

Visit our online store  for programs and guides or contact us for a personalized solution.
Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

YouTube
YouTube
LinkedIn
LinkedIn
Facebook
Twitter