During your estate planning process, it is important to understand which assets will pass through your estate and which will pass outside of it.  When we draft your will, we are only dealing with the assets that will pass through your estate.  A number of assets will generally pass outside of your estate and thus outside of your will.  It is therefore crucial to understand which assets we are dealing with in your will to ensure that your wishes are met. 

Real Property

Any interest in real estate that you own either individually, or, as a “tenant in common” with another person or people will form part of your estate. 

Interests in real property held as “joint tenants” with one or more other parties will generally pass to the survivor(s) when you die by virtue of the right of survivorship principal.  This means that your interest will flow to the survivor(s) automatically, outside of your will and without the need for probate.  There are some exceptions to the right of survivorship, but that is for another day! 

Bank Accounts and Investments

Individually held bank accounts and investments will form part of your estate. 

However, any registered investment accounts or plans with a designated beneficiary, such as an RRSP, RRIF, or a TFSA will pass directly to the designated beneficiary, outside of your estate.

Similar to real estate, interests in bank accounts that are held jointly with another person will generally pass to the survivor when you die, again by virtue of the right of survivorship.

Life Insurance Policies & Pensions

Life insurance policies and certain pension plans will also pass directly to the beneficiary, outside of your estate, provided that you have appointed a beneficiary. 

Personal Articles

Your personal items such as household items, jewellery, artwork, collectibles, and any vehicles, etc., will all form part of your estate and pass according to your will unless they are specified to be held jointly with a right of survivorship.  If you have specific items that you wish to leave to specific people, we typically recommend that you prepare a memorandum covering those specific items rather than list them all in your will. 

Author: Jane Otterstrom 

This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your legal needs, please contact our office at (250)448-2637 or any of our lawyers practicing in the area wills and estates at the following:

Jane Otterstrom: jane@touchstone.law