Wills and Legacy Giving: A Practical Introduction

This article is a companion article to our video presentation on wills and legacy giving.

WATCH THE VIDEO SESSION HERE

This session was designed as an introduction to wills and legacy giving, with the goal of making estate planning feel less intimidating and more practical. It was not intended as a sales pitch, but as a first step toward understanding why planning matters and how people can approach it at their own pace. The focus was on clarity, peace of mind, and reducing stress for family and loved ones.

Dying Without a Will

Estate planning matters because, in Canada, if someone dies without a will, the government becomes responsible for decisions about the estate. This applies in every province, although the rules vary. Without a will, the province determines how assets are distributed, who is considered next of kin, and how decisions are made. This can lead to outcomes that do not reflect a person’s wishes.

In Ontario, dying without a will is referred to as "dying intestate." In that situation, a common-law spouse may not inherit, bank accounts can be frozen, additional taxes may apply, and in some cases, assets can revert to the province if there is no legally recognized next of kin. Even if someone personally considers certain people to be family, those relationships may not be recognized under the law without a will in place.

Anyone with a bank account, insurance, retirement or workplace benefits, property, personal belongings, or relatives should have a will. For AEBC members in particular, we emphasize that family should always come first. While charitable giving is an important topic, no gift to a charity should ever come at the expense of family or friends. Estate planning comes before charitable decisions.

A will reduces stress for loved ones by limiting the number of decisions they must make during an already difficult time. It can address practical matters such as funeral arrangements, payment of bills, care of pets, and distribution of personal belongings. Without a will, family members are left to guess what someone wanted, which can lead to conflict—especially if different people remember different conversations from different points in time.

Getting started on a will begins with taking an inventory of assets. This includes bank accounts, insurance, financial assets, real property, and items of sentimental value. It also includes identifying anyone or anything that depends on the individual, such as a spouse, roommate, or pet. Having this information organized is an important foundation for planning.

Choosing an Executor

Choosing an executor is one of the most important and challenging decisions. The executor is responsible for carrying out the instructions in the will, managing finances, paying bills and taxes, and distributing assets. Many people choose a spouse, adult child, or lawyer. It is essential that the executor is informed, agrees to take on the role, and is someone who can be trusted to make decisions when needed.

Executors handle ongoing responsibilities after death, including paying utilities and property taxes until assets are transferred or sold. If an executor declines to act, the estate may default to government administration.

A will must be written and signed. Verbal instructions are not sufficient. Wills can be created using online tools or with professional help, depending on the complexity of the estate. Once completed, the will should be stored securely, and someone trustworthy should know where it is located. Executors cannot act if they cannot find the will.

For simple estates, online will-making tools may be sufficient. More complex situations—such as blended families, multiple properties, international assets, or the potential for disputes—generally require professional advice from a lawyer, accountant, or financial advisor.

Legacy Giving

Legacy giving, also known as planned giving, refers to making a future gift to a charity, most often through a will or estate plan. These gifts can sometimes be larger than lifetime donations. People of modest means may be able to make a significant impact through their estate, even if that was not possible during their lifetime.

AEBC’s legacy giving program is called the John Rae Society, named in recognition of past AEBC member John Rae’s generosity and advocacy. Letting a charity know about a planned gift is optional, but it can be helpful. Organizations change over time, and early communication can help ensure that donor intentions are understood and respected if circumstances evolve.

Most legacy gifts are not entire estates. More often, they are a portion of what remains after family needs are addressed. Gifts can be structured in various ways, including specific amounts, percentages of an estate, or residual gifts. Other options include naming a charity as a beneficiary of registered accounts, insurance policies, or investment assets.

There can also be tax advantages to charitable giving through an estate, particularly when appreciated assets are involved. Planning with a professional can sometimes reduce the overall tax burden on an estate, which may benefit both charitable causes and heirs. These decisions are highly individual and depend on the types of assets involved.

Free and low-cost tools are available in Canada to help people create wills. Some online platforms provide accessible options and can be a useful starting point for straightforward situations. More complex estates should still involve professional advice.

Estate planning does not need to happen all at once. It is a process that can begin with organizing information and having conversations and then be refined over time. The goal is to reduce confusion, conflict, and delays, and to ensure that wishes are carried out in a way that is fair, clear, and respectful to those left behind.

Questions & Answers

This appendix reflects questions asked by participants and the responses provided, edited only to remove conversational framing and repetition. The wording remains close to the original discussion, with no interpretation or added meaning.

What happens if AEBC no longer exists when a gift in a will is realized? Can provisions be made for that?

If AEBC were to dissolve or merge, there are rules governing how charitable assets are distributed, and those rules would also apply to future gifts. If AEBC merges with another charity, the charitable registration number is transferred, and CRA tracks that change. If assets are distributed among other charities, it becomes the responsibility of the executor to deal with the gift. This is one reason it can be helpful to let a charity know about a planned gift, so donors can be notified if circumstances change and update their wills if needed. A will can also include provisions stating that if AEBC no longer exists in its present form, the gift should go to another named charity.

Should someone name an alternate charity in case AEBC no longer exists many years from now?

This is where the executor’s role becomes important. Most people write a will several years before it is needed, and circumstances change. Executors generally have discretion to interpret a donor’s intentions if a named charity no longer exists and to redirect the gift appropriately, particularly if the will allows for flexibility. Choosing an executor you trust and reviewing your will periodically are key.

If a TFSA or investment account is left to a charity, is the full value donated or just the original amount invested?

The full value can be donated, depending on how the account is structured. Percentages of registered accounts can be assigned to different beneficiaries, including charities. This does not need to be an all-or-nothing decision and should be reviewed with a financial advisor.

Are there special considerations for guide dog users when planning a will?

In many cases, guide dogs do not legally belong to the handler but to the guide dog school. Because of that, a guide dog generally cannot be willed to someone else. However, it is still important to leave instructions for the executor about the dog’s care and the relevant organization.

What does joining the John Rae Society involve? Is it only for people who leave a legacy gift?

Letting AEBC know that there is a gift in a will or another planned gift qualifies someone as a member of the John Rae Society. The purpose is respectful communication, understanding donor intentions, and appropriate recognition where desired. Any recognition would only happen with permission. Over time, the program may include advance notice of events or educational opportunities, but the focus is communication and stewardship rather than benefits.

How can charitable giving benefit children or other heirs from a tax planning perspective?

It depends entirely on the types of assets in an estate. There is no single answer. In some cases, charitable giving can reduce the overall tax burden on an estate, which can result in more assets going to heirs. This requires planning, and a financial advisor or accountant can run scenarios to show how different approaches affect taxes and distributions.

Are there differences in estate planning rules for people who live in Quebec?

Yes. Quebec operates under a civil law system rather than common law. Notaries play a much larger role, and wills are often notarized with stricter formal requirements. Estate planning in Quebec is more structured and less flexible in some respects, so it is important to work with a professional who understands Quebec law. The same applies to anyone with assets in multiple provinces or countries.