Estate Planning Essentials for Alberta Families

Estate Planning Essentials for Alberta Families

Estate planning isn’t just for the ultra-wealthy—it’s for anyone who wants to protect their loved ones, reduce taxes, and ensure their legacy is passed on smoothly. In Alberta, estate planning has its own set of legal and tax considerations, making it essential for families, professionals, and business owners to start planning early with their financial advisor in Calgary and revisit it often.

This guide outlines the essential components of wealth management estate planning for Alberta residents and how you can create a financial plan that reflects your values and financial goals.

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1. Start with a Will That Reflects Your Current Situation

Your will is the foundation of your estate plan. It outlines who will receive your assets, how they’ll be distributed, and who will administer your estate (the executor).

In Alberta:

• If you die without a will (intestate), provincial law decides who inherits—regardless of your wishes.
• A valid will reduces delays, minimizes family disputes, and simplifies the probate process.

Tip: Revisit your will after major life changes—marriage, divorce, birth of a child, business sale, or acquiring new assets.

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2. Choose a Trusted Executor (and Backup)

An executor is responsible for carrying out your wishes and managing your estate’s legal, tax, and financial duties.

Qualities of a good executor:

• Organized and trustworthy
• Capable of handling paperwork and financial matters
• Willing and available to serve

You can appoint a family member, friend, or a professional (e.g., a trust company or lawyer).

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3. Use Powers of Attorney and Personal Directives

Estate planning isn’t just about what happens after death—it also protects you during your lifetime if you become incapacitated.

In Alberta, you need:

• Enduring Power of Attorney (EPA): Appoints someone to manage your financial affairs if you lose capacity.
• Personal Directive: Appoints someone to make healthcare decisions on your behalf.

These documents help avoid court-appointed guardianship and ensure decisions reflect your wishes.

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4. Minimize Probate and Estate Taxes

Alberta has one of the lowest probate fees in Canada (max ~$525), but you should still plan ahead to avoid tax leakage and delays.

Estate Strategies include:

• Naming designated beneficiaries on RRSPs, TFSAs, and insurance policies
• Using joint ownership with right of survivorship (for spouses, where appropriate)
• Setting up trusts to manage complex family dynamics or large inheritances
• Planning around capital gains tax on secondary properties or corporate shares

Proper financial planning can save your estate tens of thousands of dollars in taxes and fees.

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5. Review and Update Beneficiary Designations

Many people forget to update beneficiaries after major life changes—divorce, remarriage, children, or changes in financial goals.

Check and update designations on:

• RRSP and RRIF investment accounts
• TFSA investment accounts
• Pension plans
• Life insurance policies
• Group benefits through work

Outdated designations can result in unintended outcomes and family conflict.

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6. Plan for Business Succession (If Applicable)

If you own a business or hold shares in a private corporation, your estate plan should include a succession plan to transition ownership or facilitate a sale.

Consider:

• Whether you’ll pass the business to children or sell to a third party
• Using freeze strategies or family trusts to minimize taxes and transfer future growth
• Coordinating shareholder agreements and buy/sell clauses

Failing to plan for succession is one of the most common—and most expensive—mistakes entrepreneurs make.

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7. Communicate Your Estate Plan with Loved Ones

Even the best estate plan can create confusion or conflict if your family isn’t informed. While you don’t have to share every detail, it helps to:

• Explain your intentions
• Let key individuals know where documents are stored
• Introduce them to your Calgary financial advisor or estate lawyer

This proactive wealth management step builds trust and clarity for your family during a difficult time.

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Build a Legacy That Lasts

At MRG Wealth Management, we help Calgary families create integrated estate plans within their overall wealth management plan to protect wealth, reduce taxes, and support future generations. As your Personal CFO and financial advisor in Calgary, we can collaborate with your lawyer and accountant to ensure every piece of your financial life works in sync.

Book a complimentary estate planning review and gain peace of mind for you and your family.