When Should You Revisit Your Estate Planning Documents?

• Published date: 24 April 2023
• Subject Matter: Wealth Management, Real Estate and Construction, Family and Matrimonial, Wealth & Asset Management, Construction & Planning, Divorce, Wills/ Intestacy/ Estate Planning
• Law Firm: McLennan Ross LLP
• Author: Elisa Rabello

When we think about estate planning, a Will is the first document that comes to mind. However, when planning your estate, it is essential to include two other documents, an Enduring Power of Attorney and a Personal Directive.

An Enduring Power of Attorney ("EPA") and a Personal Directive ("PD") are the documents that empower someone else to make decisions for you once you have lost the capacity to do so for yourself. The EPA names an "Attorney" to make decisions related to your assets and financial matters. The PD designates an "Agent" to make decisions related to your personal and health matters. Both documents give a lot of power to your decision-maker, so it should be someone you trust. Further, you should also speak to your Attorney and Agent prior to finalizing your EPA and PD to ensure they agree to take on the role.

Once you die, your EPA and PD lose effect, and your Will comes into effect. A Will is a legal document that states the testator's intentions for the distribution of assets and wealth after death. Furthermore, a testator may also appoint guardians for minor children, establish trusts for their benefit, and designate beneficiaries for certain investment accounts such as RRSPs, TFSAs, RRIFs, or life insurance benefits.

A Will may be amended or redrafted at any time, as long as you have testamentary capacity. This means that the testator understands in a general way:

(1) the nature and extent of their property,

(2) the persons who are the natural objects of their bounty,

(3) the testamentary provisions they are making,

(4) be capable of appreciating these factors in relation to each other, and

(5) forming an orderly desire as to the disposition of their property.¹

The person(s) you name as your Executor(s) will be responsible for your assets and remains. Your Executor will also be responsible for gathering, administering, and distributing your estate. Being an Executor is time-consuming and comes with legal responsibilities (and liability), so it is essential to ensure the person(s) you name as Executor(s) understand(s) and agree(s) to take on the role.

We have previously discussed that dying without a Will leads to inconvenience2; however, it must be noted that keeping your estate planning documents accurate and up to date is as important as having those documents in place. Therefore, you should revisit your estate planning documents any time there is a material change in your circumstances, such as:

• Marriage
• Adult Interdependent...