Dealing with your belongings

Three Basic Ways Your Assets Are Passed Down When You Die

Deb Patterson, owner of Grief Plan Inc., explains that there are three primary ways your assets are distributed after you pass away:
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1. Joint Tenancy
If you own assets jointly with someone else, those assets will automatically transfer to the surviving owner(s) without any immediate tax implications or disputes over ownership. Common examples include jointly owned homes and bank accounts. While less common, some investments, valuable items like art, or vehicles may also be jointly owned. Increasingly, single individuals are setting up joint bank accounts, and elderly parents are adding their children as co-owners of their homes. However, it's important to note that in the case of real estate, there may be tax consequences if one of the joint owners already owns another primary residence.
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2. Beneficiary Designations
Certain assets, like life insurance policies, Registered Retirement Savings Plans (RRSPs), and Tax-Free Savings Accounts (TFSAs), allow you to designate a beneficiary. When you set up these accounts, you specify who will receive the funds upon your death. While there may be tax consequences for the deceased's estate—particularly with RRSPs if the beneficiary is not a spouse—the funds typically transfer directly to the beneficiary without withholding taxes at the time of transfer. However, the final tax return of the deceased will include any taxes due on the deemed withdrawal of the RRSPs, which the estate must pay. If an RRSP or a Registered Income Fund (RIF) is transferred to a surviving spouse, there is no immediate tax impact, as the funds become part of the spouse’s RRSP and are taxed when withdrawn.
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3. Your Will
After the distribution of jointly owned assets and those with designated beneficiaries, the remaining assets are distributed according to your will.
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SIMPLIFY THE WORK BY Dealing with your belongings BEFORE YOU DIE

We all accumulate a lot of belongings throughout our lives, from personal items like jewelry and furniture to intangible assets such as financial accounts and even debts. Some of these items may be valuable or meaningful to your family and friends. By planning ahead and deciding what happens to your belongings before you pass away, you can ensure a smoother transition and that your final wishes are honored. On this page, we share tips and advice from experts who have helped people manage and distribute their possessions, whether in preparation for death or for other reasons.
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Comprehensive Asset & Information Organizer:
​A Checklist for Valuables, Memberships, Subscriptions, and Debts

​This checklist compiled by one of our volunteers can help you organize information related to your valuables, memberships and subscriptions, non-physical assets, and debts:
1. Itemize your valuables
Go through the inside and outside of your home, and make a list of all valuable items. Examples include the home itself, jewelry, collectibles, vehicles, art and antiques, computers, etc.. The list will probably be longer than you may have expected. As you go, you may want to add notes if someone comes to mind that you'd like to have the item after your death.
2. Add your non-physical assets
Next, start adding your non-tangible assets to your list, such as things you own on paper or other entitlements that are predicated on your death. Items listed here would include investment accounts, Retirement Savings Plans (RSPs), bank accounts, life insurance policies, and other policies such as long-term care, homeowners, auto, disability, and health insurance. Include all account numbers and list the location of any physical documents you have in your possession. You may also want to list contact information for the firms holding these non-physical possessions.
3. Assemble your list of debts
Make a separate list for open credit cards and other obligations you may have. This should include items such as auto loans, mortgages, home equity lines of credit (HELOCs), and any other debts you might owe. Again, add account numbers, the location of signed agreements, and the contact information of the companies holding the debt. Include all your credit cards, noting which ones you use regularly and which ones tend to sit in a drawer unused. (It's generally a good practice to run a free credit report at least once a year. This will also identify any credit cards you may have forgotten you have.)
4. Make a List of Memberships and Subscriptions
If you belong to any organizations such as CARP, The Royal Canadian Legion, a professional accreditation association, or a university alumni group, make a list of them. In some cases, these organizations may have accidental life insurance benefits (at no cost) on their members, and your beneficiaries may be eligible to collect. Include any other charitable organizations that you support. It's also a good idea to let your beneficiaries know which charitable organizations or causes are close to your heart and to which you might like donations to go in your memory.
5. Make copies of your lists
When your lists are completed, you should date and sign them and make at least three copies. The original should be given to your personal representative/ executor. The second copy should be given to your spouse or partner (if you have one) and placed in a safe deposit box (if you have one). Keep the last copy for yourself in a safe place.
6. Review your retirement accounts
Accounts and policies that have designated beneficiaries will pass directly to those people or entities upon your death. It does not matter how you direct that these accounts or policies be distributed in your will or trust. The beneficiary designations associated with the retirement account will take precedence.
Review each account to make sure the beneficiaries are current and listed exactly as you like. This is especially important if you have divorced and remarried.
7. Update your life insurance
As with retirement accounts, life insurance and annuities will pass directly to your beneficiaries. It is important to contact all life insurance companies where you maintain policies to ensure that your beneficiaries are up-to-date and listed correctly.
8. Select a responsible personal representative / executor
Your personal representative or executor will be in charge of administering your will when you die. It is important that you select an individual who is responsible and in a good mental state to make decisions. Don't immediately assume that your spouse or children are the best choice. Think about how emotions related to your death will affect this person's decision-making ability. If you foresee an issue, consider other qualified individuals. More on selecting an executor.
9. Draft your will (if you don't have one)
Everyone over age 18 should have a will. It is the rulebook for the distribution of your assets, and it could prevent havoc among your heirs. A will can also name a guardian for your minor children, and designate who should care for your pets. You can leave assets to charitable organizations through your will, too.
Wills are relatively inexpensive estate-planning documents to compose; many attorneys can help you craft a will for less than $1,000, depending on the complexity of your assets and your geographic location. You can also write your own will with the assistance of online services or other software packages.
Make sure that you sign and date your will, in front of two non-related witnesses who should also sign the document, and have it notarized. Finally, make sure other people know the location of the document so they may access it when needed.
10. Regularly review your documents
Review your will for updates at least once every two years and after any major life-changing events (marriage, divorce, the birth of a child, and so on). Life is constantly changing, and your assets and wishes are likely to change from year to year, too.
11. Copy your personal representative / executor
Once your will is finalized, signed, witnessed, and notarized, you will want to make sure that your estate administrator gets a copy. If the original is not being kept in your home (for example, it's at your attorney's office), you should also keep a copy in a safe place at home.
12. Visit with an estate attorney or financial planner
While you may think that you've covered all your bases, it may be a good idea to consult with a professional on a full investment and insurance plan. And if it's been a while, you may want to revisit your plan. As you get older, your needs may change, such as figuring out what to do if you need long-term care and protecting your estate from a large tax bill or lengthy court processes. Professionals will also be up on changes in legislation and income or estate tax laws, which could impact your bequests.
13. Simplify your finances
Over time you may have created a number of different retirement savings plans and investments. You may want to consider consolidating these accounts to simplify the process as you age. This can allow for better investment choices, lower costs, a larger selection of investments, less paperwork, and easier management.
14. Complete other important documents
At a minimum, you should create a will, enduring power of attorney, and personal directive. Your will should also assign guardianship for your minor children as well as any pets. 
You can also complete the information in our registry and/or write a letter of instruction to leave step-by-step instructions to spell out your personal wishes for things like your funeral or what to do with your digital assets like social media accounts. If you're married, each spouse should create a separate will, with plans for the surviving spouse. Finally, make sure that all the concerned individuals have copies of these documents.

Consider Decluttering as you downsize

The best time to declutter is before a move, particularly if you're downsizing. Getting rid of items you no longer want or need will save you time, money and effort. Less stuff means less to move, not to mention a clear, clutter-free start to life in your new, smaller home. Finding the right decluttering tips to downsize can be difficult. Here are some links to useful guidance:

Need Help? Hire a Professional Home Organizer

When we asked around, the average hourly rate for a professional organizer in Alberta is around $55 per hour, although that price can range from $30 to $130 per hour depending on the project and their level of expertise. To find one near you search the internet for "Professional Home Organizer Alberta" or "Professional Home Organizer near me." Be sure to discuss your expectations and get a quote in writing before hire.
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Dealing with someone's stuff after they pass away

Our best advice is to approach the experience of sorting through a loved one's belongings after a death with patience and flexibility. If doing it with others, surround yourself with people who love and support you. Though this can be an overwhelming task, it can also be healing. In an ideal world, everyone would have decluttered their belongings before they passed. ​But in many cases, that is not the reality of what happens. Some people don’t declutter because they were in poor health. Others simply really enjoyed their things and didn’t want to part with them. And other times, we just assume we have more time than we do.
Here are some helpful articles to help you through the process:​