Protecting Your Wealth: Estate Planning Myths That Could Cost Your Family

When it comes to protecting your wealth and your family, few topics feel as overwhelming or as easy to put off as estate planning. But waiting too long, or relying on assumptions, can leave your loved ones facing costly mistakes, unnecessary conflict, and a future that looks very different from what you intended.

We often meet families who thought they were “covered” only to discover gaps that could derail their plans. Let’s clear up some of the most common estate planning myths and highlight why taking a proactive approach makes all the difference.

Protecting Your Partner: What Common-Law Couples Need to Know About Inheritance

In Ontario, common-law partners do not have the same inheritance rights as married spouses. If you die without a will, your partner has no automatic right to a share of the estate. In fact, 100% of the assets go to the blood relatives.

That could leave a surviving partner vulnerable, especially if they assumed they were protected.

The solution is straightforward: establish a valid will that clearly outlines your wishes.

Will vs. Beneficiary Designations: What Really Decides Who Inherits

Your will is only part of the picture. Certain assets, such as RRSPs, TFSAs, and insurance policies, are transferred directly to the beneficiary named on the plan. If those designations don’t match your will, the beneficiary designation wins.

We’ve seen cases where a client left their RRSP to their children in the will, but the account still named their second spouse as the beneficiary.

Because the plan’s designation overrides the will, this caused confusion and conflict among family members.

This is why reviewing your beneficiary designations is just as important as keeping your will up to date. Both must work together to reflect your true intentions.

Probate Explained: When It Applies and When It Doesn’t

Many people picture every estate going through probate, with a formal “will reading.” In reality, not all assets require a probate process. For example:

RRSPs and TFSAs with named beneficiaries can pass outside probate. A non-registered stock portfolio, may need to go through the probate process based on the value at time of death.

Knowing the difference and structuring your assets properly can save your family time, money, and stress in the long run.

Estate Planning Matters for Every Canadian

It’s easy to assume estate planning is only necessary for millionaires with multiple properties or business empires. But the truth is, if you own a home, have savings, or want to protect your partner or children, you need a plan.

One client once came to us convinced they needed a complex family trust after reading about it online. In reality, they only had a house and modest savings. A trust made no sense in their situation and would have added unnecessary costs. Trusts can be valuable tools, but they’re most often needed in specific cases, like when providing long-term protection for a disabled child.

This is where good advice matters: your estate plan should be tailored to your life and advice should come from professionals not online.

Why Estate Plans Need Regular Updates (and When to Review Yours)

Life changes, and your estate plan should evolve with it. A new marriage, a divorce, the birth of a grandchild, or even a health diagnosis can completely change your wishes, and the way your assets flow.

At a minimum, you should review your will, powers of attorney, and beneficiary designations every five years. That way, your documents are always aligned with your life today, not your life ten years ago.

Estate planning is more than documents. We take the time to understand your complete financial picture, so your plan isn’t just technically correct, it truly reflects your values, your family dynamics, and your long-term goals. That clarity gives you peace of mind today and spares your loved ones from unnecessary stress tomorrow.

Don’t let myths or assumptions put your family’s future at risk. The right estate plan protects your wealth and ensures your wishes are honoured.

Ready to review your estate plan? Get in touch with us to start the conversation.