WealthEstate Planning Basics for Canadian Investors
Your Will: The Foundation of Every Estate Plan
A valid will is the cornerstone of estate planning. Rules vary significantly by province. Quebec follows the civil law tradition, and a notarial will drafted and signed before a Quebec notary is the most recommended form. It is automatically registered in the Register of Testamentary Dispositions and does not require court probate, saving time and expense. Holograph wills and wills before witnesses are also valid in Quebec but must be verified by a court upon death.
In other provinces, a will generally requires two witnesses. Without a valid will, provincial intestacy laws determine how your assets are divided. Consult a notary in Quebec, or an estate lawyer in other provinces.
Your Executor (or Liquidator): Who Manages Your Estate?
In Quebec, this person is called a liquidator; in other provinces, an executor. Their job is to inventory assets, pay debts and taxes, and distribute the estate. Choose someone trustworthy, organized, and available.
Name an alternate executor/liquidator in case your first choice cannot act. Discuss the role with the person before naming them.
Successor Holder (Spouse Only)
- Available only to a spouse or common-law partner
- TFSA is transferred directly to them, maintaining its registered status
- Defers any tax; no immediate tax impact
Regular Beneficiary Designation
- The account loses its TFSA status
- Different from the successor holder designation
Verified against the article's beneficiary designations section and FAQ.
Beneficiary Designations: Outside the Will, Outside Probate
The beneficiary designation on your registered accounts and life insurance policies is one of the most powerful estate planning tools available.
- RRSP, RRIF, TFSA, life insurance: when a valid beneficiary is named, these assets pass directly to the beneficiary, bypassing your estate and avoiding probate entirely.
- This speeds up the transfer of funds and reduces estate administration costs.
- In Quebec, direct designations on RRSP/RRIF/TFSA accounts are less common than in other provinces. Check with your financial institution and a notary.
Keep designations current after every major life event: marriage, divorce, birth of a child, or death of a named beneficiary.
For everything about how a TFSA is handled at death, see our article on TFSA at death: successor holder vs. beneficiary.
| Account / Asset Type | Tax Treatment at Death |
|---|---|
| Non-registered accounts | Accrued capital gains on stocks, ETFs, and other investments become taxable |
| RRSP and RRIF | Full value included in income for the year of death, taxed as ordinary income, unless a spousal rollover applies |
| TFSA | No capital gains or income tax on growth accumulated up to death; spouse as successor holder inherits with no immediate tax impact |
| Principal residence | Generally exempt from capital gains tax |
Verified against the article's "Deemed Disposition at Death" section, listing tax treatment by account type.
Deemed Disposition at Death: Capital Gains and Your Final Tax Return
When you die, the Canada Revenue Agency (CRA) treats you as having sold all your capital property at fair market value. This is the deemed disposition, and it can trigger significant capital gains tax on your final return.
- Non-registered accounts: accrued capital gains on stocks, ETFs, and other investments become taxable. See our guide on how investment income is taxed in Canada.
- RRSP and RRIF: the full value is included in income for the year of death and taxed as ordinary income, unless a spousal rollover applies.
- TFSA: no capital gains or income tax applies to growth accumulated up to death. If your spouse is named as successor holder, they inherit the TFSA with no immediate tax impact. See our TFSA at death article.
- Principal residence: generally exempt from capital gains tax. See our article on the principal residence exemption in Canada.
The spousal rollover allows most capital property to transfer to a surviving spouse at the original adjusted cost base, deferring tax until the surviving spouse's death. A spousal RRSP is another useful tool in integrated estate and retirement planning.
Quebec (Notarial Will)
- Avoids court verification (probate) entirely
- A meaningful advantage of Quebec's civil law system
Other Provinces
- Ontario: estate administration tax runs approximately 1.5% of the estate value above $50,000
- Other provinces: fees vary; Alberta caps probate fees at a modest amount
Verified against the article's "Probate Fees and Estate Administration Costs" section.
Probate Fees and Estate Administration Costs
Probate (called verification in Quebec) fees vary widely across Canada:
- Quebec: a notarial will avoids court verification entirely — a meaningful advantage of Quebec's civil law system.
- Ontario: estate administration tax runs approximately 1.5% of the estate value above $50,000.
- Other provinces: fees vary; some provinces like Alberta cap probate fees at a modest amount.
Assets passing via beneficiary designation or joint ownership with right of survivorship generally avoid probate. Joint ownership carries its own legal and tax risks — consult a specialist before using it.
Estate Planning Checklist for Canadian Investors
| Item | What to Check |
|---|---|
| Valid will | Drafted, signed, updated after major life events |
| Executor / liquidator | Named and informed of their role |
| Beneficiary designations | Current on RRSP, RRIF, TFSA, life insurance |
| TFSA successor holder | Spouse designated if applicable |
| Deemed disposition | Tax estimate done with a tax professional |
| Spousal rollover | Planned with a tax advisor |
| Power of attorney / mandate | In place for incapacity (mandate in Quebec) |
Important: estate rules differ by province, and Quebec operates under its own civil law system. Always consult a notary (in Quebec) or an estate lawyer, as well as a Chartered Professional Accountant, for advice tailored to your personal situation.
Frequently asked questions
Do my registered accounts (RRSP, TFSA) go through my will?
Not necessarily. If you have named a valid beneficiary on your RRSP, RRIF, or life insurance policy, those assets pass directly to the beneficiary outside your estate. For your TFSA, if your spouse is named as successor holder, the account transfers to them without going through your estate at all. Rules in Quebec differ - check with your financial institution and a notary.
What is the deemed disposition at death?
At death, the CRA treats you as having sold all your capital property at fair market value. This can trigger capital gains tax on your final tax return. RRSP and RRIF balances are included in full as ordinary income in the year of death, unless a spousal rollover applies.
Is a TFSA taxed when I die?
Growth accumulated inside your TFSA up to the date of death is not taxed. If your spouse is named as successor holder, they inherit the account without any immediate tax impact. However, any growth after the date of death and before the account is distributed may be taxable.
Do I need a notary in Quebec to write a will?
It is not strictly required - a holograph will (entirely handwritten and signed by you) is valid in Quebec. However, a notarial will is strongly recommended: it is registered with the Register of Testamentary Dispositions, does not require court verification at death, and is much harder to contest.
What is a TFSA successor holder?
A successor holder designation - available only to a spouse or common-law partner - allows the TFSA to be transferred directly to them, maintaining its registered status and deferring any tax. This is different from a regular beneficiary designation, where the account loses its TFSA status.
Are probate fees different in Quebec?
Yes. A notarial will in Quebec does not go through court probate, which avoids the associated fees entirely. In other provinces like Ontario, estate administration tax can be approximately 1.5% of the estate value, which on a large investment portfolio can add up to a significant sum.
Sources & references
Educational content; verify figures with official sources before acting.