Does Your Will Align with Your Intent? (Reviewing your Will)

Hello everyone, and welcome to the Retiring Canada Podcast.

In today’s episode, we’re diving into a topic that many people put off: reviewing your will to make sure it aligns with your actual intentions.

We’ll cover:

Common estate planning pitfalls
Three real-life scenarios I’ve seen in the last 12 months
Key conversations you should be having with your legal counsel
Who should be reviewing their will
And a few action items to take away today

Before we get into it, here’s the standard disclaimer: I’m not a lawyer. I’m a Certified Financial Planner who has reviewed hundreds of wills as part of the work I do with clients.

And I can tell you—there are often gaps between what people intend and what their will would actually execute. That’s where a good team—including legal counsel—comes in to help clarify and correct any issues.

Now, not all lawyers have a strong understanding of personal finance. So just because a will was drafted by a lawyer doesn’t mean it’s airtight from a financial or tax planning perspective.

Unfortunately, this can lead to issues like:

Unequal or unintended distributions
Excess taxes on the estate
Tax liabilities for the executor
Even conflict between beneficiaries

That said, many estate-focused lawyers I work with are excellent and very in tune with financial planning considerations. But it’s always worth reviewing and double-checking.

Over the past year, I’ve reviewed 12 wills for new and prospective clients. In several of those, we uncovered potential problems—things like:

Executors unintentionally being left on the hook for large tax bills
Unequal distributions that weren’t intended
Disabled dependents at risk of losing benefits
And large lump-sum inheritances going to minors at a very young age

Let’s walk through three real-world examples to highlight what can go wrong—and how to fix it.

Scenario #1: Executor stuck with a surprise tax bill

In this case, the will stated the estate was to be split evenly between three adult children. One of them was named as the executor.

Here’s a quick summary of the estate:

A $400,000 condo (primary residence)
A RRIF worth ~$1.2 million
A TFSA with $300,000

The RRIF and TFSA named the three adult children as direct beneficiaries. So upon death, those funds would bypass the estate and go straight to the kids. The condo would go through the estate, likely be sold, and then the proceeds divided.

Sounds fine, right?

But here's the problem: the estate owed taxes—about $550,000. While the TFSA is tax-free, the RRIF is fully taxable upon death, even if it passes directly to the beneficiaries.

This left the executor in a tough spot. Even after selling the condo, there was still a $200,000 shortfall in the estate to cover the taxes. The executor would need to go back to the other two beneficiaries and ask for money back. That can create stress—or even conflict—in the family.

One solution: Name the estate as the beneficiary of the RRIF. That way, both the RRIF and the condo go through the estate. Taxes can be paid first, and then the remaining assets distributed. Yes, this triggers probate fees, but it simplifies tax management and protects the executor.

For example:

In Alberta, probate fees are capped at $525.
In Ontario, the same estate would incur about $24,000 in probate.

But here’s the question: is it worth paying the probate fee to protect the executor from liability and avoid family conflict? For many, the answer is yes.

Scenario #2: An unintentional unequal distribution

In this case, the client believed their estate would be split evenly among three adult children. But the will said one child would receive a fixed amount—$100,000—while the remaining two would split the rest 50/50.

Once I ran the numbers, the actual result was stark:

One child would get $100,000
The others would get $500,000 each after taxes and fees

It was a genuine oversight. The client was shocked—but thankful we caught it in time to correct with legal counsel. Without a second look, this could’ve caused major family tension.

Scenario #3: Minors inheriting millions

Another case involved naming minor children as beneficiaries, with the estate held in trust until they turned 18. This is a common setup—but not always the best one.

In this case, the minors would have inherited $2 million each at age 18.

That’s a huge responsibility at a very young age.

A better option? Add more detailed instructions to the will:

Stagger distributions over time
Tie funds to specific milestones (like education, age 25, etc.)

Yes, this adds complexity and may involve additional administrative costs—but it gives more control and safeguards to protect young beneficiaries from poor financial decisions.

When should you review your will?

If it’s been more than 5 years
After major life events (marriage, divorce, business sale, etc.)

This is where working with a team—a lawyer, accountant, and Certified Financial Planner—can make a real difference.

Together, we can ensure your will, investments, and estate plans truly align with your wishes.

Today’s Action Items

Review your registered account beneficiaries.
If you're married or in a common-law relationship, your spouse is likely listed. But if you're widowed or single, your adult children or others might be named directly. Just remember:
- The money goes straight to them
- But taxes may still be payable by the estate
Review your will.
Pull it out, read it, or better yet—bring it to your lawyer or trusted advisor. A simple review could save your family from confusion, tax issues, or conflict later on.

That’s it for today’s episode!

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For links and resources discussed today, check the show notes or visit retiringcanada.ca.

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All comments are of a general nature and should not be relied upon as individual advice. The views and opinions expressed in this commentary may not necessarily reflect those of Harbourfront Wealth Management. While every attempt is made to ensure accuracy, facts and figures are not guaranteed, the content is not intended to be a substitute for professional investing or tax advice. Please seek advice from your accountant regarding anything raised in the content of the podcast regarding your Individual tax situation. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.