Webinar Recap: Beyond the Money — Planning Your Legacy with an Estate Plan
Estate planning has a reputation problem. In a recent Wealthsimple webinar, host Alicia Vogan and estate specialist Angela Carter reframe it as an act of care and shows how much of the tax and probate pain at death is foreseeable, and therefore plannable.
July 21, 2026
TLDR
- When you pass away, the Canada Revenue Agency (CRA) treats you as though you sold almost everything the day before, a "deemed disposition" that can trigger a tax bill on your estate.
- The costliest mistakes come from probate avoidance, and trusts rarely deliver the tax savings people expect.
- Probate is partly geography: Ontario charges roughly 1.5% of estate value and British Columbia's sliding scale tops out at roughly 1.4% on larger estates, while Alberta caps fees at $525.
An estate specialist on planning as an act of care
Most of us treat estate planning as something for later, until a life event decides otherwise. Host Alicia Vogan, Senior Manager, Advice Innovation at Wealthsimple, sits down with estate specialist Angela Carter to unpack what happens to a large estate at death, and how much of the pain you can see coming.
Angela Carter is a Certified Financial Planner (CFP) with 11 years in wealth management and a specialization in estate planning, and she's completing her Trust and Estate Practitioner (TEP) designation. Her argument is a gentle one.
"I think estate planning is one of those things people assume they’ll deal with later... But the strange thing is later tends to become someone else’s problem.
It’s about what happens to your money, your family, and your intentions."
— Angela Carter, CFP, Wealthsimple
Best practices and key learnings
Decide how each asset is treated before you plan
Before choosing any strategy, understand how the CRA will treat each account after passing. The mix matters more than the total: a portfolio heavy in registered accounts carries a different tax profile than one built around a home and a Tax-free Savings Account (TFSA).
- Separate the tax-heavy from the tax-light: know which accounts are taxed as income (RRSP, Registered Retirement Income Fund (RRIF)), which are taxed on 50% of the gain (non-registered, cottage), and which pass over as tax-free (TFSA, principal residence).
- Stress-test for liquidity: confirm the estate can cover the tax bill without a rushed sale of assets your family wants to keep.
- Revisit after life events: a business sale, an inheritance, or a move can change the picture, so treat the plan as living.
Get professional advice before any probate workaround
The shortcuts that sound clever at a dinner party are the ones Angela sees backfire. A qualified financial advisor, tax specialist, or lawyer can price the trade-offs first.
- Pause before adding a child to title: it can expose the asset to their creditors and trigger unintended tax. You are responsible for paying the taxes on your capital gains based on fair market value at the time of transfer, so make sure you have the cash available to cover that tax bill before you sell or gift the property.
- Think twice about discounted family sales: Selling a cottage to your children for less than it's worth usually doesn't save tax. The CRA will still treat the sale as if it occurred at fair market value, meaning you'll pay capital gains tax based on the property's full value. However, your children's tax cost is generally only what they actually paid, which could result in them paying tax again on the same growth when they eventually sell.
- Instead, consider gifting the cottage or selling it at fair market value so they receive the higher tax cost base, just make sure you have enough cash set aside to cover the tax bill.
- Weigh the province you live in: probate rules vary widely, so build your approach around your own jurisdiction. You should compare the tax costs of a transaction against the potential probate savings before making a decision.
Use trusts for the right reasons
Trusts have a reputation as a tax-saving superpower, and Angela is candid that it's overblown.
"Trusts don't have the tax-saving superpowers that many people expect."
— Angela Carter, CFP, Wealthsimple
- Know the tax realities: Tax is triggered on any unrealized gains when you transfer assets into a trust, the income generated inside the trust is taxed at the top marginal rate unless paid out to beneficiaries, and every 21 years there is a deemed disposition triggering tax on any unrealized gains.
- Use them where they shine: trusts earn their cost for blended families, incapacity planning, and providing for disabled or minor beneficiaries.
- Consider the business-sale case: a family trust with a spouse and 2 children can multiply the Lifetime Capital Gains Exemption (LCGE) of about $1.25M each to shelter roughly $5M on a business sale.
Plan early enough to have options
Angela notes that a straightforward estate plan takes about 10 hours of work, while a complex one runs closer to 40. Starting early, while you're clear-headed, keeps your options open.
- Start before a crisis forces it: planning ahead of a life event gives you time to weigh strategies calmly.
- Consider gradual transfers thoughtfully: gifting to adult children while you're alive can be a lovely idea, but it’s a decision you can’t reverse. It’s best to have a financial planner review your numbers first to make sure that the gift doesn’t put your own retirement goals at risk, and they can also talk you through any tax considerations you may need to plan for.
- Account for special circumstances: a Registered Disability Savings Plan (RDSP) transfer of up to $200K, a Henson trust, or charitable giving can each address a specific need, and US beneficiaries carry their own rules, including a US$100,000 gift declaration threshold.
Putting the insights into practice
The thread tying this together is a shift in mindset.
"People assume estate planning is about maximizing wealth. But honestly, it’s more like minimizing chaos."
— Alicia Vogan, Senior Manager, Advice Innovation, Wealthsimple
The specifics differ for every household, which is why it helps to walk through your own numbers with someone who does this daily.
How Wealthsimple Wealth Management could help
If your situation is complex, you shouldn't have to untangle it alone. Wealthsimple Wealth Management pairs high-net-worth Canadians with a dedicated fiduciary advisor who builds a plan around your goals: retirement, tax optimization, and the estate questions Angela walks through here.
Ready to walk through your own picture? Get in touch with a Wealthsimple Wealth Management advisor.
For information purposes only. This is not individual financial, tax, or legal advice. Estate and probate rules vary by province (examples here use Ontario), so speak with a qualified financial advisor, tax specialist, or lawyer about your own situation. Related reading from Wealthsimple Learn: Does inheritance tax exist in Canada?, Estate planning in Canada, and Capital gains tax in Canada.