Estate planning in BC involves more than just a will. Here is what you need to know about wills, trusts, powers of attorney, and directives - the complete toolkit to protect your family and your legacy.
Estate planning is not just for the wealthy. Every adult should have a basic estate plan that ensures their wishes are known, their family is protected, and their affairs are in order if something unexpected happens. Here is what BC's WESA says about the core documents you need.
The four pillars of estate planning
1. Will
A will directs how your assets are distributed after you die. It also names an executor to manage your estate and guardians for your minor children.
2. Power of Attorney
A power of attorney (POA) names someone to make financial and legal decisions on your behalf if you become incapacitated. There are two types:
• Immediate POA - takes effect when you sign it
• Springing POA - takes effect only if you become incapacitated (requires a doctor's certificate)
3. Representation Agreement (Healthcare Directive)
A representation agreement names someone to make healthcare and medical decisions on your behalf if you cannot. It can include:
• Decisions about life support and end-of-life care
• Authorization for your named representative to access medical records
• Your wishes regarding organ donation
4. Directive Regarding Personal Care
A directive allows you to:
• Specify your wishes about living arrangements
• Name someone to oversee your personal care (hygiene, meals, medications)
• Provide guidance if you develop dementia or cognitive decline
Why all four documents matter
Consider this scenario: You have a stroke at age 55 and are hospitalized. Your spouse wants to pay your bills and access your bank accounts, but cannot without a power of attorney. Your hospital team needs to know your wishes about life support, but they cannot ask you and your family is uncertain. Without a representation agreement, the hospital must go to court to get authority to make medical decisions.
A comprehensive estate plan prevents this crisis:
• Your power of attorney allows your spouse to manage finances immediately
• Your representation agreement authorizes your spouse to make medical decisions
• Your directive clarifies your wishes about personal care
• Your will ensures your estate is distributed as you wish if you die
Wills under the WESA
BC's Wills, Estates and Succession Act sets out strict requirements for a valid will:
• Must be in writing
• You must be at least 16 years old
• You must sign it (or have someone sign on your behalf)
• Two independent witnesses must sign it
• You must have testamentary capacity (understanding of the will and its implications)
A will can be challenged if:
• It was forged or improperly executed
• You lacked capacity
• Someone exerted undue influence
• The will conflicts with statutory requirements
Trusts under the WESA
A trust is an arrangement where one person (trustee) holds assets for the benefit of another (beneficiary). Trusts are useful for:
• Managing assets for minor children
• Protecting assets if a beneficiary has financial irresponsibility or addiction issues
• Tax planning and asset protection
• Providing for a spouse and children if you remarry
• Controlling how and when beneficiaries access money
Types of trusts
Testamentary trust (created in your will)
A trust that begins after you die. For example: "I leave $500,000 in trust for my daughter until she reaches age 25, at which point the trustee distributes the balance to her."
Living trust (created during your lifetime)
A trust that you create and fund while alive. You can:
• Name yourself as trustee initially
• Specify who takes over if you become incapacitated
• Control exactly how assets are managed and distributed
• Potentially avoid probate (assets held in trust do not go through probate)
Spousal trust
A trust created for your spouse's benefit, allowing you to defer tax on appreciated assets while ensuring your children eventually inherit.
Powers of Attorney under BC law
A power of attorney is a document naming someone (attorney) to act on your behalf. In BC:
• You must be mentally capable when you sign it
• Your attorney is required to act in your best interests
• You can revoke it at any time while you are capable
• The attorney's authority ends when you die (at that point, your will and executor take over)
Choosing your attorney
Your attorney should be:
• Someone you trust completely
• ORGANISizED and capable of managing finances
• Willing and able to handle the responsibility
• Available and local (though not always required)
• Someone without conflicts of interest
You can name alternates in case your first choice cannot serve.
Common mistakes in estate planning
Not communicating your wishes
Your family should know:
• Where your will is stored
• Who your executor is
• Your wishes about end-of-life care
• Who your attorney is
• Passwords for online accounts (stored securely)
Holding assets only in your name
Assets held jointly (JTWROS - joint tenancy with right of survivorship) pass automatically to the surviving owner and do not go through probate. Similarly, assets with named beneficiaries (RRSPs, life insurance) bypass probate. Coordinate these with your will.
Naming minor children as beneficiaries without a guardian
If you have young children, name both a guardian and a trustee to manage their inheritance until they are old enough.
Failing to update your plan
Your estate plan should be reviewed and updated every 5-7 years or after major life events (marriage, divorce, significant wealth changes).
Not addressing tax implications
A comprehensive estate plan minimizes taxes through:
• Spousal trusts
• Charitable donations
• Life insurance proceeds (taxed differently than investments)
• Timing of asset sales and distributions
At Sea to Sky Law™
We help BC residents create comprehensive estate plans that protect their families and reflect their values. We draft wills, powers of attorney, representation agreements, and trusts tailored to your situation.
Contact us for a free consultation to discuss your estate plan.
This article is for general information only and does not constitute legal advice.
A comprehensive BC estate plan includes: a Last Will & Testament (distribution of your estate after death); an Enduring Power of Attorney (financial and legal decisions if you become incapacitated); a Representation Agreement (health care and personal decisions); and sometimes a trust — either testamentary (created in your Will) or inter vivos (created during your lifetime). Beneficiary designations on RRSPs, TFSAs, and life insurance are also part of a complete plan.
A Will takes effect only after your death and governs distribution of your estate. A trust can operate during your lifetime (a living trust) or be created by your Will to take effect at death (a testamentary trust). Trusts are often used in BC to protect assets for children until they reach a specified age, to manage assets for a beneficiary with special needs, or to control distribution across blended families.
No. BC does not have an estate tax or inheritance tax. However, death triggers a deemed disposition of capital property at fair market value — meaning capital gains tax may be owing on investments, real estate (other than a principal residence), and business interests. The deceased's final income tax return must be filed, and CRA must issue a Clearance Certificate before the estate can be fully distributed.
An Enduring Power of Attorney (EPA) is a lifetime planning document — it has no effect after death. It authorizes a trusted person to manage your financial and legal affairs if you become incapacitated. Without an EPA, your family may need a costly BC Supreme Court application for a Committee Order to manage your finances. It is a key part of any complete BC estate plan.