November 5, 2026

Is a Will Enough? Building a More Complete Estate Plan

Written by Cameron Kerr B.A, CPA
An image depicting an accountant helping a client work through the details of their will as part of a larger estate plan.

A properly prepared will is one of the foundations of an effective estate plan. However, it does not address every financial, legal, and personal issue that may arise during your lifetime or following your death.

A will can identify beneficiaries, appoint an executor, establish trusts for beneficiaries, and provide instructions for distributing property after death. For individuals with corporations, investment portfolios, real estate, blended families, minor children, or other complex circumstances, a broader estate plan may be required.

A Will Only Takes Effect After Death

One of the most important limitations of a will is that it generally takes effect only after death. It does not authorize another person to manage your property or make personal-care decisions if you become incapable during your lifetime.

An unexpected illness, injury, or decline in capacity can leave you unable to manage banking, investments, real estate, business interests, taxes, or other financial obligations. A will does not provide anyone, including a spouse or adult child, with automatic authority to make those decisions for you.

A comprehensive estate plan should therefore consider appropriate powers of attorney. These documents can authorize trusted individuals to manage property and make personal-care decisions if you are no longer able to do so yourself.

Incapacity Can Create Business and Financial Risk

Incapacity planning is particularly important for business owners and individuals with significant or complex assets. If no one has clear authority to act, important decisions involving a corporation, rental property, investment portfolio, financing arrangement, or other asset may be delayed.

For a business owner, the estate plan should also be coordinated with:

  • Shareholders’ agreements
  • Corporate signing authorities
  • Buy-sell arrangements
  • Life and disability insurance
  • Business succession plans
  • The individual’s powers of attorney

The objective is not merely to transfer wealth after death. It is also to help ensure that assets and business interests can continue to be managed effectively during an owner’s lifetime.

Some Beneficiaries May Need More Than an Outright Inheritance

A will can name beneficiaries and set out how an estate is to be distributed. However, an immediate and unrestricted inheritance may not be appropriate in every situation.

Additional planning may be warranted where a beneficiary:

  • Is a minor
  • Has a disability or special needs
  • Is not yet financially experienced
  • Faces potential creditor or family-law exposure
  • Would benefit from professional or long-term asset management

A trust may allow property to be managed by trustees for a beneficiary over a period of time and in accordance with defined terms. A trust may be a tool that would allow for the management of income and capital but there are legal considerations, tax considerations, and maintenance costs associated to a trust.

Estate Administration May Delay Access to Assets

Naming a beneficiary in a will does not necessarily mean that the beneficiary will receive the property immediately following death. The executor may first need to locate and value the assets of the estate, obtain authorization to act as executor/estate trustee, and settle any liabilities, including tax liabilities for distribution

The estate should therefore have sufficient liquidity to address immediate obligations, which may include:

  • Funeral and family expenses
  • Income taxes arising at death
  • Estate administration tax and professional fees
  • Mortgage and other debt payments
  • Business operating requirements
  • Support for family members during the administration period

Life insurance, appropriately structured ownership arrangements, beneficiary designations, and other planning tools may help provide liquidity, but each option has different tax and legal consequences.

Privacy Should Be Considered

A will submitted to the court as part of an estate administration proceeding may become part of the public court record. Individuals concerned about confidentiality may wish to discuss whether additional planning structures are appropriate for particular assets or family circumstances.

Privacy should not be considered in isolation. Tax consequences, control over the assets, creditor exposure, family-law issues, administrative costs, and the individual’s overall objectives must also be taken into account.

Property in More Than One Jurisdiction Can Complicate an Estate

Owning real estate, private-company shares, or other property outside one’s home province or outside Canada can create additional estate administration issues. Separate legal processes, local professional advice, additional filings, and foreign tax obligations may be required.

Individuals with property in more than one jurisdiction should obtain coordinated legal and tax advice. In some cases, multiple wills or other specialized planning arrangements may be considered, but these documents must be drafted carefully so that one does not unintentionally revoke or conflict with another.

Tax Planning Is an Essential Part of Estate Planning

Estate planning and tax planning are closely connected. At death, Canadian income-tax rules may result in a deemed disposition of capital property, potentially triggering capital gains. Registered plans, private-company shares, investment properties, shareholder loans, trusts, and property located outside Canada can introduce additional tax considerations.

An effective estate plan should assess:

  • The estimated income-tax liability arising at death
  • The availability of tax-deferred transfers to a spouse or qualifying trust
  • The taxation of registered plans
  • Capital gains associated with investments and real estate
  • The treatment of private-company shares
  • The availability of exemptions, deductions, and tax elections
  • The estate’s liquidity needs
  • The tax and reporting obligations of any trusts created under the will

For business owners, post-mortem tax planning may also be necessary to reduce the risk of multiple levels of tax arising when corporate value is transferred to an estate or beneficiaries.

A Will Remains Essential

The limitations of a will do not make it any less important. A will can appoint an executor, identify beneficiaries, establish testamentary trusts, provide distribution instructions, and nominate guardians for minor children.

The key is to view the will as one component of a coordinated plan rather than as the entire plan.

Depending on your circumstances, your estate plan may also include:

  • Powers of attorney for property and personal care
  • Trust arrangements
  • Beneficiary designations
  • Life insurance
  • Corporate succession documents
  • Shareholders’ agreements
  • Tax and liquidity planning
  • Funeral and personal wishes
  • A secure inventory of assets, liabilities, accounts, and important documents

Review Your Estate Plan Regularly

An estate plan should be reviewed periodically whenever there is a significant change in personal, financial, or business circumstances. Marriage, separation, the birth of a child, the death of a beneficiary or executor, the acquisition or sale of a business, retirement, and the purchase of property in another jurisdiction can all affect an existing plan.

We Can Help You Build a Coordinated Estate Plan

Estate planning involves more than deciding who will receive your property. It requires careful consideration of incapacity, family circumstances, tax exposure, business succession, estate liquidity, and the practical administration of your assets.

At McCay Duff LLP, our accounting and estate-planning professionals can work with you and your legal advisors to identify potential tax and financial issues and help develop a coordinated plan that reflects your objectives.

Contact McCay Duff LLP in Ottawa to Help You With Your Estate Planning Needs

Estate planning sits at the intersection of legal drafting and tax planning, and the tax side is where value is either preserved or lost. Talk to a professional who can model the deemed disposition, structure a trust and take on the executor’s filing obligations when the time comes. To learn more about how McCay Duff LLP can provide you with the best taxation and estate planning expertise, contact us online or by telephone at 613-236-2367 or toll-free at 1-800-267-6551.

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This article is general information, not tax or legal advice. Tax rules change, and the figures cited are current as at the date of writing; confirm your own position with your advisor.