Study guide
16.5 Estate Planning Basics
Canadian Securities Course CSC
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1 Introduction & Exam Overview
About the CSC Exams
2 Chapter 1: The Canadian Investment Marketplace
1.1 The Canadian Securities Industry & the Investment Dealer's Role 1.2 Financial Intermediaries: Banks, Trusts, Credit Unions, Insurers & Pension Funds 1.3 Financial Market Trends 1.4 Investment Capital, Financial Instruments & Financial Markets 1.5 Canadian Exchanges, ATSs, Dark Pools & the Order Protection Rule 1.6 Canadian Securities Regulators, the CSA & CIRO 1.7 Investor Protection: OSFI, CIPF and CDIC 1.8 Ethics, Standards of Conduct & the Client Focused Reforms 1.9 Conflicts of Interest, Complaint Handling & Remediation
3 Chapter 2: The Economy
2.1 Economics Foundations & Measuring Economic Growth 2.2 The Business Cycle & Economic Indicators 2.3 Inflation & Interest Rates 2.4 The Labour Market & Unemployment 2.5 The Bank of Canada & the Inflation-Control Target 2.6 Implementing Monetary Policy: The Operating Band, Market Operations & Transmission 2.7 Fiscal Policy, Deficits & the Challenges of Government Policy 2.8 International Finance & Trade: The Balance of Payments and the Canadian Dollar
4 Chapter 3: Features and Types of Fixed-Income Securities
3.1 The Fixed-Income Marketplace, Bond Terminology & Security 3.2 Protective Covenants, Retirement Provisions & Extendible/Retractable Features 3.3 Government of Canada Securities: T-Bills, Marketable Bonds & RRBs 3.4 Provincial & Municipal Debt and Strip Bonds 3.5 Corporate Bonds, Credit Spreads & Bond Ratings 3.6 Money Market Instruments, Floating-Rate Notes & International Bonds 3.7 Other Fixed-Income Securities & Reading Bond Quotes
5 Chapter 4: Pricing and Trading of Fixed-Income Securities
4.1 Bond Pricing, Price–Yield Relationships & Accrued Interest 4.2 Yield Calculations & Return Measures 4.3 The Term Structure of Interest Rates & Yield Curve Theories 4.4 Fundamental Bond Pricing Properties: Volatility Rules, Duration & Convexity 4.5 Bond Market Trading & Bond Indexes
6 Chapter 5: Common and Preferred Shares
5.1 Common Shares: Ownership Rights, Voting & Restricted Shares 5.2 Dividends, DRIPs, Stock Splits & Consolidations 5.3 Preferred Shares: Features, Cumulative Dividends & Taxation 5.4 Preferred Share Variations: Convertible, Callable, Retractable, Floating & Rate-Reset 5.5 Fundamental Equity Metrics & Ratios 5.6 Stock Indexes & Averages
7 Chapter 6: Equity Transactions
6.1 Order Types, Execution & Market Mechanics 6.2 Margin Trading: Long Accounts & Borrowing 6.3 Short Selling & Short-Margin Requirements 6.4 Trading & Settlement Procedures: T+1, CDS & Confirmations
8 Chapter 7: Derivatives
7.1 Derivatives: Role, Underlying Assets & Users 7.2 Options Fundamentals: Calls, Puts & Moneyness 7.3 Option Strategies & Risk Management 7.4 Forward & Futures Contracts 7.5 Rights & Warrants
9 Chapter 8: Corporations and their Financial Statements
8.1 Corporate Structures & Corporate Governance 8.2 The Annual Report, Accounting Standards & the Auditor's Report 8.3 The Balance Sheet & Income Statement 8.4 The Cash Flow Statement & Earnings Quality 8.5 Public Company Disclosure, Investor Rights, Take-Over Bids & Insider Trading
10 Chapter 9: Financing and Listing Securities
9.1 Government & Corporate Financing: Underwriting and Syndicates 9.2 The Prospectus Process, Stabilization & Purchaser Rights 9.3 The Exempt Market & Private Placements 9.4 The Listing Process: TSX, TSXV & Capital Pool Companies 9.5 Continuous Disclosure, Material Changes & Insider Reporting
11 Chapter 10: Investment Analysis
10.1 Methods of Equity Analysis & Macroeconomic Analysis 10.2 Fundamental Industry Analysis 10.3 Company Analysis: Competitive Advantages, Governance & the Dividend Discount Model 10.4 Discounted Cash Flow & Relative Valuation Multiples 10.5 Financial Statement Ratio Analysis 10.6 Assessing Preferred Share Investment Quality 10.7 Technical Analysis: Charts, Trends & Patterns 10.8 Technical Indicators, Volume, Breadth & Sentiment
12 Chapter 11: Portfolio Analysis
11.1 Measuring Investment Return 11.2 Measuring Risk: Types of Risk, Standard Deviation & Downside Measures 11.3 Portfolio Risk & Return: Correlation and Diversification 11.4 Beta, the Capital Asset Pricing Model & the Security Market Line 11.5 Portfolio Manager Styles: Equity & Fixed Income 11.6 The Portfolio Management Process: Objectives, Constraints & the IPS 11.7 Asset Mix, Monitoring, Performance Evaluation & Rebalancing
13 Chapter 12: Alternative Investments, Other Managed, and Structured Products
12.1 Alternative Investments: Structures, Fees & Liquid Alternatives 12.2 Alternative Strategies, Performance Measurement & Due Diligence 12.3 Segregated Funds, Labour-Sponsored Funds & Listed Private Equity 12.4 Income Trusts, REITs & Closed-End Funds 12.5 Structured Products: PPNs & Market-Linked GICs 12.6 Split Shares & Asset-Backed Securities
14 Chapter 13: Mutual Funds
13.1 Managed Products & Mutual Fund Structure 13.2 Pricing Mutual Fund Units: NAVPS & Forward Pricing 13.3 Mutual Fund Fees, Sales Charges & Unit Series 13.4 Mutual Fund Regulation, Fund Facts & Account Opening 13.5 Types of Mutual Funds & Fund Management Styles 13.6 Redemptions, Withdrawal Plans & Measuring Fund Performance
15 Chapter 14: Exchange-Traded Funds (ETFs)
14.1 ETF Origins, Structure, Tax Efficiency & ETF Facts 14.2 ETF Creation, Redemption & Arbitrage 14.3 Types of ETFs & Advanced Strategies 14.4 Comparing ETFs, Mutual Funds & Individual Securities
16 Chapter 15: Working with the Institutional Client
15.1 The Institutional Marketplace & Institutional Clients 15.2 Institutional Investment Guidelines, Styles & Restrictions 15.3 Buy Side & Sell Side: Trading Desks, Revenue, Clearing & Best Execution 15.4 Block Trading, Dark Pools & Algorithmic Trading
17 Chapter 16: Fee-Based Accounts and Working with the Retail Client
16.1 Fee-Based Accounts: Managed & Non-Managed Models 16.2 Fee Transparency, CRM2 & Total Cost Reporting, and MWRR vs. TWRR 16.3 The Financial Planning Approach & the Life Cycle 16.4 Behavioral Finance, Sequence-of-Returns Risk & Client Coaching 16.5 Estate Planning Basics
18 Chapter 17: Canadian Taxation
17.1 The Canadian Taxation System 17.2 Taxation of Investment Income 17.3 Capital Gains, Losses & The Superficial Loss Rule 17.4 Registered vs Non-Registered Tax-Advantaged Accounts 17.5 Tax Planning Strategies, Pension Plans & the RDSP
16.5 Estate Planning Basics
Key Takeaways Explain This Topic AI
A will names an executor and directs how assets pass; without one, provincial intestacy rules decide.
Probate validates a will; fees vary by province (Ontario charges 1.5% of estate value above $50,000, while Alberta caps fees at $525).
Assets with a named beneficiary (RRSPs, RRIFs, TFSAs, insurance, seg funds) or held in joint tenancy with right of survivorship usually pass outside the estate.
At death, capital property is deemed sold at fair market value and RRSP/RRIF balances are taxable, unless they roll over to a spouse or common-law partner.
Powers of attorney let someone manage a client's property or personal care if the client becomes incapable.
Last updated: October 2026
Estate planning arranges a person's affairs so that, at death or incapacity, assets go where the person wants, at the lowest reasonable cost in taxes and fees, with the least delay and conflict. Advisors do not draft wills (that is a lawyer's or notary's job), but they must understand the basics, because estate issues affect account registration, beneficiary choices and investment decisions.
Wills and Intestacy
A will is a legal document that:
- names an executor (called a liquidator in Quebec) to administer the estate;
- directs who receives the assets (the beneficiaries );
can create trusts and name guardians for minor children.
A person who dies without a valid will dies intestate . Provincial law then sets who inherits (typically a spouse and children in fixed shares), and a court appoints an administrator. Intestacy can produce results the person would not have wanted, such as leaving nothing to a common-law partner in some provinces, and it causes delay. Wills should be reviewed after marriage, separation, divorce, births and deaths, because some of these events can revoke or change the effect of a will.
Probate
Probate is the court process that confirms a will is valid and the executor's authority to deal with the assets. Financial institutions often require probate before releasing large accounts. Provinces charge fees or taxes based on the estate's value:
- Province Probate cost (examples)
- Ontario Estate administration tax of 1.5% of the estate's value above $50,000 (none on the first $50,000)
- Alberta Fees on a scale capped at $525
- Quebec Notarial wills do not need probate; other wills require verification
Probate also makes the will a public document and can take months.
Passing Assets Outside the Estate
Several common arrangements pass assets directly to survivors, avoiding probate fees on those assets:
Beneficiary designations on RRSPs, RRIFs, TFSAs (where provincial law allows), life insurance and segregated funds.
TFSA successor holder: a spouse or common-law partner named as successor holder simply takes over the TFSA, keeping it tax-free.
Joint tenancy with right of survivorship (JTWROS): the surviving joint owner takes the asset automatically. Adding an adult child as joint owner can avoid probate but may give the child's creditors or spouse a claim, can trigger a disposition for tax, and can cause family disputes about whether the child was meant to keep the asset.
Trusts created during life (inter vivos trusts).
Powers of Attorney
A power of attorney (POA) appoints someone to act if the client cannot:
A continuing or enduring POA for property lets the attorney manage financial affairs, including investment accounts, and remains valid if the client becomes mentally incapable.
A POA for personal care (or a health care directive or mandate in Quebec) covers health and living decisions.
Without a POA, family members may need a court order to manage the client's affairs. Advisors should know who holds a client's POA and watch for signs of financial abuse; the trusted contact person and temporary hold rules support this.
Trusts in Estate Planning
- Trust Key features
- Testamentary trust Created by a will; holds assets for beneficiaries such as minor children or a spouse
- Graduated rate estate (GRE) An estate can be taxed at graduated rates for up to 36 months after death
Alter ego trust Created by a person aged 65 or older for their own benefit; assets pass at death without probate
- Joint partner trust Similar, for a person aged 65 or older and their spouse or common-law partner
- Taxes at Death
Canada has no estate tax as such, but death triggers income tax on the final return:
Deemed disposition: capital property is deemed sold at fair market value immediately before death, so accrued capital gains are taxed, unless the property passes to a spouse, common-law partner or spousal trust, which defers the gain.
RRSPs and RRIFs: the full value is included in the deceased's income, unless it rolls over to a spouse or common-law partner (or, in some cases, a financially dependent child or grandchild).
TFSAs: growth up to the date of death is tax-free; growth after death is taxable to the beneficiaries unless a spouse takes over as successor holder.
Final return deadline: April 30 of the following year, or six months after death if death occurs in November or December.
Charitable gifts made through the will can produce donation credits that offset tax on the final return.
Worked Example: Taxes on the Final Return
Daniel, a widower, dies in March 2026 owning:
- an RRIF worth $300,000, with his adult daughter named as beneficiary;
- non-registered shares worth $200,000 with an adjusted cost base of $80,000;
a TFSA worth $60,000, also with his daughter as beneficiary.
On his final return:
The full $300,000 RRIF is included in income, because there is no spouse to roll it to and his daughter is not financially dependent on him.
The shares are deemed sold for $200,000, producing a $120,000 capital gain, of which 50% ($60,000) is taxable.
The TFSA adds nothing to income; its value at death is tax-free.
The RRIF and TFSA pass directly to the daughter outside the estate, but the estate is primarily responsible for the tax they generate. Advisors should check that the assets left in the estate can cover the tax bill; otherwise the executor faces hard choices and the beneficiaries of the will may receive less than intended. Life insurance is often used to fund taxes at death. Because Daniel died before November, his final return is due April 30, 2027.