A recent Angus Reid study of 1,300+ Canadians found that most couples aren’t taking the next step to finalize their legal documents or speaking to their significant others about their wishes.
In this article, we’ll discuss why estate planning is so important, how wills for newlyweds work, and how to avoid common mistakes when you do.
Why estate planning matters for newlyweds
Estate planning is essential for newlyweds because it provides security, clarity, and peace of mind as you begin your new life together.
By creating an estate plan, you can make sure your assets, finances, and personal wishes are protected and your loved ones are cared for if something unexpected happens.
Here’s why you should prioritize estate planning as newlyweds:
1. Protection of assets and inheritance
It’s common for newlyweds to combine finances and acquire joint assets like a home, savings, or investments. Joint assets are transferred entirely to the surviving owner if the other owner passes away, but what about the assets you don’t share together?
Without a will, provincial estate laws determine who inherits those assets. This means some people will get priority over your estate over others, even if they’re relatives you’re estranged from or don’t want to give anything to.
But with an estate plan, you can name primary beneficiaries or split your assets in multiple ways. This ensures that your estate is transferred according to your personal wishes.
2. Care for dependents and future children
If you plan to or already have children, your will is where you can appoint one or more guardians to care for your children and make provisions for their care and education with a testamentary trust.
Without one, the government decides who takes care of your children, and that person may not be the person you would have chosen.
3. Health and medical decisions
A power of attorney document appoints a substitute decision-maker to act on your behalf when you are unable to. In a medical emergency, your appointed attorney for personal care would be aware of your wishes and able to make health care decisions on your behalf, ensuring you get the care you need as quickly as possible.
Newlyweds often choose each other, but it’s important to consider factors like availability and proximity when selecting your attorney.
4. Managing debts and liabilities
When you pass away, your spouse will not inherit your debts unless they were a co-signer for them. Your estate is responsible for settling your remaining debts and liabilities, and your estate is managed and distributed by your executor.
Should a married couple have the same executor?
Your executor and your spouse’s executor don’t have to be the same person.
But if your spouse is willing to take on the role of your executor, it may help with settling your estate since they’re probably more familiar with your assets than anyone else.
Once you’ve chosen someone, you can officially appoint them to the role by adding them to your will. Note that your executor can also be a beneficiary of your estate.
Risks of not having an estate plan
- Without a will, the courts decide how your assets are distributed and who will care for your children, which can cause delays, stress, and unintended outcomes
- Lack of clear instructions may lead to family disputes over your estate or healthcare decisions, creating conflicts and strained relationships
- Without medical directives, your loved ones may have no say in important health choices, potentially resulting in undesired treatments or delays
Essential elements of an estate plan
Here's a rundown of the key components of a good estate plan, though remember that some provinces refer to different documents in different ways.
Your will
Your last will and testament is one of the most important parts of your estate plan. It outlines how your assets will be distributed after your death as well as who should take on key roles in your estate settlement. This includes:
- Naming an executor to manage and settle your estate
- Appointing guardians for minor children or pets
- Designating beneficiaries for your assets, such as money, property, or personal belongings
- Setting up testamentary trusts for minor beneficiaries
A will can be drafted with a lawyer, with an online will platform like Willful, with a will kit, or by hand.
Learn more about the different types of legal wills and their costs →
Your power of attorney (POA) documents
Power of attorney documents allow you to appoint people to act on your behalf for medical, financial or legal matters if you become incapacitated. There are two main types:
- A power of attorney for personal care appoints someone to act on your behalf about your personal care and medical decisions if you ever become incapacitated
- A power of attorney for property appoints someone to act on your behalf with respect to your assets and finances, either during a specific time or if you become incapacitated
Note: POAs expire once you pass away.
Your healthcare directives
Healthcare directives, also called living wills or personal directives, are documents that outline your medical preferences and personal care wishes.
Your attorney for personal care, spouse, or other substitute decision-maker should base their decisions on this document if you are ever incapacitated.
Beneficiary designations for other assets
Adding beneficiaries allows certain assets to bypass your estate and transfer directly to the beneficiary, speeding up the process and potentially reducing probate fees. You can designate beneficiaries for assets like life insurance, RRSPs, and TFSAs. It's important to keep these designations up to date after life changes like marriage, divorce, or having children.
Your asset list
An asset list is a master list of all your assets and the important information associated with them. It can be extremely helpful for your loved ones and your executor, especially in relation to your digital assets.
Your digital footprint, including social media accounts, online banking, or digital investments (such as cryptocurrency), should be accounted for in your estate plan, but information about them (such as passwords or usernames) should not be included in your will.
What about trusts? Learn how they fit into an estate plan →
Your funeral or burial wishes
While funeral and burial wishes aren’t legally binding, it’s important to include them in your will or a separate document so your loved ones are aware of your preferences.
With Willful, you can easily specify whether you want to be buried, cremated, or have a green burial, along with any service preferences.
Is my personal will still valid after marriage?
It depends. In Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, and Prince Edward Island, marriage revokes your will unless you stated in your will that you were making it while also planning to get married.
In British Columbia, Ontario, Saskatchewan, Yukon, and Quebec, your will remains valid after marriage.
Learn more about why marriage can revoke your will →
Should married couples have their own will?
Yes, each spouse must have their own will to ensure their individual wishes are legally respected. While you can create mirror or mutual wills, having separate wills offers more flexibility for each spouse’s unique estate.
Steps to create a new estate plan as newlyweds
Here’s a step-by-step process following best practices for estate planning in Canada:
1. Assess your assets and liabilities
Take inventory of your joint- versus solely-owned assets, including bank accounts, property, and more, as well as liabilities like debts or loans. This helps you understand what your estate plan needs to cover.
2. Discuss your goals with your partner
Have an honest discussion with your spouse about your wishes for asset distribution, guardianship of current or future children, and healthcare decisions. You may feel uncomfortable talking about death and your wishes, but it’s important to communicate your wishes.
3. Choose executors, beneficiaries, and guardians
Select the trusted people you want to appoint to manage your estate, receive assets, and care for your children if necessary. It’s best to agree on someone as a guardian. It can be hard, and it might require multiple discussions to arrive at an agreement, but it’s important to consider each other’s perspectives and agree on an acceptable choice.
Need help choosing a guardian? Check out this article →
4. Create or update your will
Draft or update your will. Remember that if you had a previous will, it may have been revoked after you got married!
If you create your will with Willful, you can also update it anytime, anywhere, for free. This saves you thousands of dollars compared to using a lawyer. Plus, both you and your spouse can save when you choose a Premium x 2 plan, which is perfect for couples!
Start your will for free today →
5. Set up powers of attorney and healthcare directives
Appoint someone you trust to manage your finances and healthcare if you become incapacitated. You can choose a different person or the same person for each role. It’s up to you.
6. Designate beneficiaries on accounts and policies
Ensure that your registered accounts and life insurance policies have up-to-date beneficiary designations to help them transfer over your estate and avoid probate delays.
7. Execute your documents and keep them somewhere safe
Once you’ve signed and witnessed your documents based on your provincial requirements, make sure to keep them in a safe place and tell your spouse and executor where they are. You can also register your will with the Canada Will Registry for free if you make your will with Willful!
This ensures that when the time comes, your will can be found without delay.
9. Review and update your plan regularly
Life changes, and your wishes may change with it. As newlyweds, you may start to welcome new members to your family or new assets into your home. Remember to check over your estate plan every 6-12 months, updating your wills to ensure it always reflects your current wishes.
📝 Download your FREE guide on how to make your estate plan →
Common estate planning mistakes for newlyweds
- Delaying your will: Many newlyweds put off making a will, but without one, provincial intestacy laws will determine how your assets are distributed, which may not align with your wishes.
- Not updating beneficiaries: Be sure to update beneficiary designations for RRSPs, TFSAs, and life insurance policies to ensure they bypass your estate and go directly to your chosen people.
- Failing to appoint a guardian: Appointing a guardian (and backup) for your children in your will ensures that you, not the government, make the decision about who takes care of your children.
- Overlooking powers of attorney: Many people ignore powers of attorney until it’s too late. Setting them up now ensures your wishes will be followed if anything ever happens.
- Forgetting digital assets: Failing to plan for digital assets can create challenges. Make sure they’re included in your estate plan and that you’ve set up backup account holders.
When and how to update your estate plan
Life changes. You may buy a home, get a car, have children, or move provinces. Your estate can change, and so can your wishes. It’s important to review your estate plan every 6-12 months.
Since Willful gives you free unlimited updates on all your documents, you can come back anytime to make changes to your estate plan. Just log back in, and click into your documents to make edits. When you’re done, download and execute them again to make them legal.
Make your estate plan today
Congratulations on your marriage, and congratulations on this first step to exploring what it means to create estate plans together!
Creating your estate plan is an important step to secure your future with your spouse as newlyweds, and the sooner you make one, the better!
