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divorce, the arrival of grandchildren, or a significant change in your assets can render portions of your plan outdated or irrelevant.

Outdated documents can also create confusion for executors, spark disputes among beneficiaries, or result in higher tax liabilities than necessary.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Real-Life Example: The Outdated Trust That Backfired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

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

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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.