Tag: family legacy

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divorce, the arrival of grandchildren, or a significant change in your assets can render portions of your plan outdated or irrelevant.

Outdated documents can also create confusion for executors, spark disputes among beneficiaries, or result in higher tax liabilities than necessary.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Real-Life Example: The Outdated Trust That Backfired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

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The Top 5 Reasons to Embrace the Emotions of Estate Planning

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
sitting at a desk with pictures and memorabilia and writing out a plan

The Emotions of Estate Planning: Why Facing These Feelings Matters

Estate planning is often seen as a task list of legal documents and financial allocations, devoid of emotions. But beneath these practical steps lie powerful emotions: love, legacy, fear, and even relief. Ignoring these emotions can lead to an estate plan that’s technically sound but lacking personal meaning. By anticipating and embracing these feelings, we can craft a plan that not only manages assets but also honors our values and relationships. Let’s take a look at why addressing the emotions of estate planning is essential—and how doing so can create a more fulfilling process for everyone involved.

Why Emotions Are Key to Estate Planning

1. Provides a Deeper Understanding of Goals

Estate planning is more than dividing assets; it’s about defining your legacy. Reflecting on emotions helps clarify what really matters. Take Mary, a retired teacher who wanted to leave her home to her children. After some reflection, she realized her true priority was to create lasting memories, not just leave a house. As she put it, “I want my children to remember our time together, not just the things I leave behind.” With that in mind, she decided to create a “legacy fund” for family vacations, ensuring her children and grandchildren would share experiences in her favorite places.

2. Ensures Family Harmony

Ignoring emotions in estate planning can lead to family misunderstandings or even resentment. Addressing emotional topics early can pave the way for a smoother process, sparing loved ones potential conflicts. Jack, for instance, initially left his family business to his oldest son without explaining his decision to his two younger children. When he finally opened up, he was able to share his reasons, saying, “I wanted to pass the business to the child who’s been most involved, but I also want my other kids to feel valued.” The conversation allowed him to create a plan that felt fair to all and prevented future resentments and tension.

3. Allows for Clearer Decision-Making

Strong emotions can cloud decisions, leading to choices that may not truly reflect our desires. Confronting feelings openly can prevent hasty decisions. Susan, for instance, felt conflicted about setting up a charitable fund in her name, fearing it seemed self-centered. However, once she acknowledged her concerns, she realized her wish to give back was a genuine reflection of her values, allowing her to proceed confidently. “I finally saw that it wasn’t about me, but about the causes that mattered to me,” she said, adding that addressing her initial hesitation was what made her feel so resolved.

4. Facilitates Honest Conversations

Estate planning opens the door to discuss hopes, expectations, and even regrets. These conversations, although challenging, often strengthen family bonds. Greg, a father of three, discovered this when he discussed his estate plans with his children. One daughter expressed feeling undervalued due to prior family dynamics. Greg reflected, “I didn’t realize the impact my past choices had on her,” which allowed him to reshape his plan in a way that felt fair and transparent to all his children.

5. Promotes Peace of Mind

A plan shaped by careful thought and emotional honesty brings a profound sense of peace. When feelings are embraced, the estate plan becomes not just a set of instructions but a heartfelt legacy. After working with an advisor, Sheila felt at peace knowing her estate plan reflected her deepest values and relationships, a peace she shared with her children. “I wanted them to know my choices were made with love and intention,” Sheila said, which gave everyone involved a sense of stability and comfort.

Tips for Embracing the Emotions of Estate Planning

  • Acknowledge All Feelings as Valid: It’s normal to feel a range of emotions—fear, love, uncertainty, or even sadness. Recognizing these emotions, rather than suppressing them, is the first step to meaningful estate planning.
  • Start with Reflection: Take time to reflect on what you want your legacy to represent. For example, someone passionate about education may wish to set up scholarships, while others might want to prioritize family togetherness by leaving a shared vacation property.
  • Involve a Neutral Third Party: Sometimes a professional, whether a counselor or financial advisor, can help facilitate emotional conversations. This approach was invaluable for Linda, who wanted to discuss leaving her estate to both her biological and stepchildren. With the guidance of a family mediator, she was able to open up about her concerns and develop a plan that felt fair and inclusive.
  • Communicate with Loved Ones Early: Discussing estate plans openly helps family members understand your motivations, preventing potential conflicts. Bill’s family discussions revealed differing values among his children, allowing him to tailor his plan to be as fair as possible while respecting everyone’s unique perspective.
  • Give Yourself Permission to Revisit: Emotions evolve, and so can your estate plan. Life events, such as the birth of a grandchild or a child’s illness, can reshape priorities. Revisiting your plan ensures it remains aligned with what matters most to you.

Leave a Legacy That Speaks from the Heart

Embracing the emotions of estate planning may feel daunting, but it ultimately leads to a legacy that’s both practical and heartfelt. By addressing these feelings, we honor not just our assets but also our relationships and values. Start these conversations today, for yourself and for your loved ones, and create an estate plan that leaves not only wealth but also wisdom, love, and peace. At NEXsteps, we are here to help guide you and your family through these difficult discussions.

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:

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Contact us to share your comments or ask questions.

The Will to Divide: How Disinheritance Shapes Your Legacy

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
disinheritance

Wills and Wounds: The Emotional Fallout of Disinheritance

When writing a will, emotions often run high, and decisions about who should inherit and disinheritance can be influenced by a range of factors—from strained relationships to personal grievances. However, the choice to cut someone, especially a child, out of a will can have lasting consequences on your legacy. Before cutting someone out of your will, be sure to examine closely the reasons for doing it and the potential long term effects on those who you have chosen to disinherit.  Let’s take a look at some of the reasons testators may exclude heirs, the emotional and legal fallout, and how to safeguard your legacy even after you’re gone.

Why Do Testators Cut People Out of Their Will?

Disinheriting someone from a will is not a decision that should be made lightly. Emotions rather than deep reflection often run this decision. Common reasons include:

  • Family Conflicts: Long-standing disagreements or estrangements can lead to a testator deciding to exclude a family member.
  • Perceived Injustice: A testator may feel that one child or relative has received more during their lifetime and choose to balance the scales.
  • Influence of Others: Sometimes, a new spouse or family member may influence the testator’s decisions, leading to the exclusion of others.
  • Personal Beliefs: A testator might disapprove of a child’s lifestyle or choices and decide to exclude them from the will.

The Emotional Impact on Those Left Out

Being excluded from a will can be an incredibly painful experience, particularly for children. For many, inheritance is more than just a transfer of assets; it represents a final act of love, validation, and connection. When someone is unexpectedly left out of a will, it can trigger deep feelings of abandonment and rejection, leading to lasting emotional scars.

  • Feelings of Rejection: Children who are disinherited often grapple with questions about their worth and the nature of their relationship with the deceased. They may feel as though their entire bond was conditional, leading to a sense of profound betrayal.
  • Resentment and Bitterness: The decision to exclude someone can fuel feelings of resentment not only towards the testator but also towards other heirs who were included. This can cause lasting rifts within families, turning what should be a time of grieving and remembrance into a period of conflict and animosity.
  • Unresolved Grief: Grieving a loved one is already a challenging process, but when coupled with the shock of disinheritance, it can become even more complicated. The grieving process may be stalled or prolonged as the disinherited individual struggles to come to terms with both the loss and the perceived injustice.
  • Legacy of Division: The emotional toll of exclusion often reverberates through the generations. Siblings who might have otherwise supported each other through the grieving process may find themselves divided, leading to a fractured family unit and a legacy of discord.

Legal Ramifications of Exclusion

Disinheriting someone, especially a child or close family member, can lead to significant legal challenges that may consume both time and financial resources, potentially diminishing the estate and creating public disputes. Here are some of the potential legal consequences and fallout.

  • Contesting the Will: In many jurisdictions, children and spouses have the legal right to contest a will if they believe they have been unfairly excluded. Common grounds for contesting include claims of undue influence, where the testator was pressured into making decisions, or lack of mental capacity, where the testator was not of sound mind when drafting the will.
  • Undue Influence and Legal Battles: If a testator was influenced by a new spouse or another individual to exclude a child, the disinherited party might argue that the will does not reflect the testator’s true intentions. Legal battles over such claims can be lengthy and emotionally draining, often resulting in the erosion of family relationships and the depletion of estate funds.
  • Public Disclosure: When a will is contested, the details become part of the public record, exposing private family matters to public scrutiny. This not only tarnishes the testator’s reputation but can also exacerbate the pain of the disinherited party, who might feel further humiliated and wronged.
  • Estate Depletion: Legal disputes over a contested will can quickly deplete the assets of the estate, leaving little for any of the heirs. Lawyers’ fees, court costs, and the potential for a drawn-out battle can reduce the value of the estate significantly, meaning the intentions behind the exclusion might be moot if there’s little left to distribute.

Impact on Legacy: What Will You Be Remembered For?

A person’s legacy is more than just the assets they leave behind; it’s also the memories, values, and emotional impact they impart to their loved ones, business associates and acquaintances. When someone is excluded from a will, particularly a child, it can profoundly affect how the testator is remembered.  Some of the ways that disinheriting someone can change the way you are remembered include the following.

  • Legacy of Bitterness: The decision to exclude a child can overshadow all other aspects of the testator’s life and legacy. Instead of being remembered for their love, generosity, or achievements, the testator might be remembered for the pain they caused by excluding someone from their will. This can taint the memories of the deceased, turning what should be a celebration of their life into a reflection on their final, divisive act.
  • Family Disunity: Disinheriting a family member often creates rifts that last for generations. The bitterness and division sown by such decisions can prevent families from healing, leading to ongoing disputes and a fractured family tree. Instead of leaving a legacy of unity and love, the testator might be responsible for deepening family divisions.
  • Reputation After Death: The way a will is executed can influence how others outside the family view the deceased. A will that disinherits a child may lead others to question the testator’s fairness or mental state, potentially casting a shadow over their entire life’s work and reputation.
  • Loss of Positive Influence: By excluding someone, the testator loses the opportunity to positively influence their life after death. An inheritance, even a small one, can serve as a final gesture of reconciliation, an olive branch that encourages healing and remembrance. Without it, the testator’s influence ends on a note of estrangement rather than connection.

Safeguarding Your Legacy: Alternatives to Exclusion

Cutting someone out of your will can have long lasting repercussions.  So before deciding to take this step, consider these alternatives:

  • Open Communication: Have honest conversations with your heirs about your decisions. Clear communication can prevent misunderstandings and reduce the likelihood of disputes.
  • Conditional Bequests: Instead of outright exclusion, consider leaving a conditional bequest that encourages certain behaviors or achievements.
  • Letter of Explanation: Accompany your will with a letter explaining your reasons. While not legally binding, it can provide closure and reduce the emotional impact on those left out.
  • Seek Professional Guidance: Consulting with a legal professional can help you structure your will in a way that minimizes potential disputes while honoring your wishes.

From the Grave: The Lasting Impact of Disinheritance

Deciding to exclude someone from your will, especially a child, can have far-reaching consequences that extend beyond the grave. It’s essential to weigh the emotional, legal, and familial impact of such a decision and explore alternatives that allow you to maintain your legacy while achieving your goals. By making thoughtful choices, you can ensure that your legacy is one of love, respect, and peace, rather than conflict and division.

A Certified Executor Advisor (CEA) can play a crucial role in this process by offering expert guidance on how to structure your will in a way that reflects your true intentions while minimizing potential disputes. They can help you navigate the complex emotions and legalities involved, ensuring that your legacy is preserved and your loved ones are cared for according to your wishes. Consulting with a CEA can make all the difference in leaving behind a positive and lasting legacy.

Nancy Boisvert is a CEA.  To see our programs or to make an appointment for an initial consultation, be sure to visit our online store for programs and guides. 

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

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Your questions and comments are always welcome! Contact us to learn more.

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