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:
- Will – Outlines how your assets should be distributed and who will be responsible for administering your estate.
- Power of Attorney (POA) – Appoints someone to handle financial matters if you become incapacitated.
- 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.
- Beneficiary Designations – Ensures RRSPs, TFSAs, pensions, and life insurance policies are directed appropriately.
- Guardianship Planning – Identifies who should care for minor children or dependent adults.
- 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.
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