The Five D’s of Estate Planning

Estate planning is often viewed as a complex or daunting task, but it doesn't have to be. To simplify the process, we use Tim Cestnick’s adaptation of Sandra Foster’s Estate Planning Workbook, known as The Five D’s of Estate Planning.

1. Define

Defining what’s most important to you is an imperative starting place for your estate plan as it helps identify your core values. These values should be your guiding star in determining the legacy you want to leave behind.

• *Example:* If generosity is a core value, perhaps you can include charitable donations.
• Once values are defined, determine who receives assets, how much, and when.

2. Design

The second step is to design strategies to aid in your estate transfer. This starts with outlining objectives consistent with your values.

• *Example:* A core value might be maintaining inter-generational wealth; the objective would be minimizing estate tax.
• You may need to prioritize objectives as they can sometimes conflict.

3. Document

This step gives complete clarity around what happens to your estate. Proper documentation leaves nothing to interpretation and avoids the government dictating what happens to your assets.

• Key Documents: Last Will & Testament, Powers of Attorney, and a Personal Directory (digital logins, contacts, etc.).
• Our Estate Directory is the ideal centralized document to capture this information.

4. Discuss

Many parents finish their estate planning with the creation of a Will but shy away from discussing it with their heirs.

• Speaking to heirs avoids confusion, hard feelings, or legal battles later.
• Guidelines: Find the right time, be on the same page as your spouse, and explain the *principles* that influenced your decisions.

5. Distribute

When distributing assets, you can gift during your lifetime, upon death, or both.

• Lifetime Gifting: Ensure you set aside enough for your own comfort.
• Post-Mortem Distribution: Can happen via intestacy (default), named beneficiaries, joint ownership, trusts, or your Will.

In conclusion, these “Five D’s” offer a great step-by-step process for achieving your desired estate planning outcomes.

About Shea Sanche

Shea Sanche, CFP®, is the founder of Insight Planning Wealth Management and has worked as a financial advisor since 1999. He specializes in financial planning, retirement strategy, and decision frameworks for Canadian families and business owners, with a focus on simplifying complex financial decisions and long-term wealth planning.

He is the creator of Insight 360 OS, a decision and life-design system built to help clients navigate financial complexity, uncertainty, and major life transitions.

Common Questions About This Topic

Do I still need a will in Canada if assets are joint?

Yes. Joint ownership can simplify transfers, but it can also create fairness, control, and tax issues. A will plus clean ownership and beneficiary structure protects intent.

What is probate in Canada?

Probate is the legal process that validates a will and allows an executor to distribute assets. Avoiding probate should not create worse tax or family outcomes.

What does an executor do?

An executor administers the estate: collects assets, pays debts and taxes, files returns, and distributes the remainder according to the will. Preparation reduces delays.