Retirement is one of the best times to take a fresh look at your financial and estate plan — not because things are necessarily wrong, but because the stakes of leaving them unreviewed get higher as you age. Health can change suddenly in later years, and decisions that are straightforward now can become very difficult if one spouse loses the capacity to engage with them.
This guide is written specifically for Canadian couples and covers the key financial and estate planning issues most relevant in retirement — including some that have changed significantly in recent years.
The Financial Knowledge Gap
In many older households, one spouse has historically managed the finances — investments, tax returns, account passwords, insurance policies. This arrangement works fine until it doesn’t. If the financially involved spouse becomes ill, incapacitated, or dies suddenly, the other spouse may find themselves with no clear picture of what they own, where it is, or how to access it.
The first step — before any of the specific issues below — is to sit down together and build a shared understanding of your financial picture. This means:
- A written list of all significant assets, their location, and how they’re held
- Account numbers, institution names, and contact information for each
- Login credentials for any accounts managed online (stored securely — not in your will, which becomes public record)
- The name and contact information of your financial advisor, accountant, and lawyer
- The location of your wills, powers of attorney, and any insurance policies
This document doesn’t need to be elaborate. It needs to exist and be findable by both spouses.
Joint Ownership and Right of Survivorship
If you hold non-registered investment or bank accounts in one spouse’s name alone, consider whether converting them to joint ownership with right of survivorship makes sense for your situation.
Joint ownership with right of survivorship means that when one spouse dies, the asset passes directly to the surviving spouse without going through the estate — avoiding probate fees and giving the survivor quicker access to funds at an already difficult time. It also defers the tax consequences of the deemed disposition on death (more on that below).
This isn’t the right structure for every asset or every couple, but for non-registered accounts it’s worth reviewing with your financial advisor.
RRSP, RRIF, TFSA, and Beneficiary Designations
Registered accounts — RRSPs, RRIFs, TFSAs, and RESPs — allow you to name a beneficiary directly on the account. When you do, the account passes directly to that person on your death, outside your estate and without going through probate.
The critical issue for older couples: these beneficiary designations are often set up years or decades ago and never reviewed. Common problems include:
- A deceased spouse still listed as beneficiary — the account then falls into your estate, triggering taxes and probate
- Your estate listed as beneficiary instead of your spouse — same result: taxes owed on the full value, probate fees, and a delay in your surviving spouse accessing the funds
- An ex-spouse still named — in most provinces, a former spouse doesn’t automatically lose beneficiary status after divorce; it must be explicitly changed
- Children named instead of spouse — may trigger immediate tax consequences rather than the spousal rollover that defers taxation
The fix is straightforward: review every registered account and confirm the beneficiary designation is current and intentional. Your financial institution can update these at any time.
RRSP to RRIF Conversion
At age 71, Canadian law requires you to convert your RRSP to a Registered Retirement Income Fund (RRIF) or purchase an annuity. This has estate planning implications:
- The full value of a RRIF is included in your income in the year of death (with important exceptions for spousal rollovers)
- If your spouse is named as successor annuitant, they can take over the RRIF directly — continuing to receive payments without the account triggering immediate taxation
- If your estate is the beneficiary instead, the full value is taxable on your final return
This is one of the most important beneficiary designation reviews for couples approaching or past 71.
Capital Gains and Estate Planning
When you die, the CRA treats most capital property as if it were sold immediately before death at fair market value — a “deemed disposition.” Any resulting capital gains are reported on your final tax return.
Current capital gains inclusion rate: 50%. The federal government proposed increasing this to 66.67% in 2024, but that increase was cancelled in March 2025. Capital gains planning for 2025 and beyond proceeds at the traditional 50% inclusion rate.
Key considerations for older couples:
- Spousal rollover: Assets can generally be transferred to a surviving spouse at their original cost base (deferring the capital gain until the surviving spouse eventually sells or dies), provided the asset is left to the spouse directly — either by will or by beneficiary designation
- Cottage and secondary property: If you own a cottage or secondary property, the deemed disposition on death will trigger a capital gain on any increase in value since purchase. The principal residence exemption only applies to one property. Planning ahead — including considering whether to transfer the property during your lifetime — can meaningfully reduce the tax impact
- Lifetime Capital Gains Exemption: Currently $1.25 million for qualifying small business shares and farming/fishing property. If you own a qualifying business or farm, this exemption is a significant estate planning tool worth reviewing with your accountant
Reviewing Your Wills
For older couples, an annual will review isn’t just good practice — it’s genuinely important. Assets acquired years ago may have changed significantly in value, making an even distribution among heirs uneven in practice. A bequest of a specific dollar amount that seemed generous when written may be worth far less in real terms decades later.
Key questions to ask during your annual review:
- Does this will still reflect our actual wishes?
- Are our executors still the right people and still willing to act?
- Have any beneficiaries died, and have we named alternates?
- Do our specific bequests still make sense given how asset values have changed?
- Have we accounted for any new assets (property, investments, digital assets)?
For a complete guide to when and how to update your will, read our guide on when to update or replace your will in Canada.
Powers of Attorney
A power of attorney is arguably more urgent for older couples than a will — it governs what happens while you’re alive but unable to make decisions, not after your death. There are two types every Canadian should have:
- Property power of attorney: Authorizes someone to manage your financial affairs if you become incapacitated
- Personal care / healthcare power of attorney: Authorizes someone to make medical and personal care decisions on your behalf
Without these documents, a spouse may not have the legal authority to manage their partner’s finances or make healthcare decisions — even in a long marriage. The court process to obtain that authority without a power of attorney is slow, expensive, and stressful at exactly the wrong moment.
Digital Assets and Accounts
Older couples often have decades of accumulated digital accounts — online banking, investment platforms, email, photo storage, subscription services. Without a plan for these, your executor and surviving spouse may face significant difficulty accessing or managing them.
For a complete guide to planning your digital legacy, read our guide on digital estate planning in Canada.
The Bottom Line
Financial and estate planning for older couples isn’t a one-time task — it’s an ongoing process that deserves a dedicated annual review. The issues above are a starting point, not an exhaustive list, and the right answers depend on your specific situation.
What applies to everyone: having a current, valid will; up-to-date beneficiary designations on all registered accounts; powers of attorney in place for both spouses; and a shared understanding of your financial picture.
WillKit makes it straightforward to create or update a legally valid Canadian will from home — written by a Canadian lawyer, valid in all provinces except Quebec, for $59.
For the financial and tax specifics of your situation, work with a qualified Canadian financial advisor or accountant. The estate planning piece — making sure your wishes are legally documented and your executor is set up to carry them out — is where WillKit can help.
Start at will-kit.ca.
