The arrangement of your personal and financial affairs prior to your death is commonly referred to as estate planning. While at one time estate planning meant the preparation of a Last Will and Testament, estate planning now also refers to the preparation of an Enduring Power of Attorney and Personal Directive.

In a Last Will and Testament (Will) you specify how your property is to be distributed after your death. A Will allows you to name a personal representative (executor) who is appointed by you to oversee the distribution of your property in accordance with your wishes. You specify the beneficiaries in your Will and what property your beneficiaries will receive. If you have children, a guardian of your children and trust arrangements are normally specified in your Will.

In an Enduring Power of Attorney you appoint a person to act as your agent to make decisions on your behalf relating to financial matters while you are alive. It can be prepared in such a way that it takes effect immediately and continues to have effect after you become mentally incapable to manage your own affairs (e.g. dementia, coma, etc.), or only take effect when you are mentally incapable to do so. An Enduring Power of Attorney avoids the need for a dependent adult trusteeship court order and the delay and expense associated therewith.

In a Personal Directive you appoint a person to act as your agent, to make decisions on your behalf relating to your personal matters, while you are alive. A Personal Directive takes effect when you lack capacity to make decision regarding personal matters. Personal matters includes decisions relating to health care, and where you live (e.g. home, care facility, etc.). A Personal Directives typically outline in advance your views and wishes regarding medical treatment in the event of a life threatening medical condition. A Personal Directive is often referred to as a living will. Personal Directive avoids the need for a dependent adult guardianship court order and the delay and expense associated therewith.

Estate Administration refers to the legal process of administering and distributing your property and estate when you die. If you have a Will, your estate is to be administered in accordance with your Will. If you do not have a Will, your estate will be distributed in accordance with the provisions of legislation entitled the Intestate Succession Act (Alberta).
The personal representative (e.g. executor) makes an application to the Surrogate Court (Alberta) for probate (where there is a Will) or for administration (where there is no Will). There are circumstances where with proper planning (e.g. joint ownership of property) the expense and delay of probate or administration may be avoided.

Do I need a will?