Estate planning isn’t just for the ultra-rich. And it’s not something you want to get wrong.

For DIY investors, be mindful of these common will-related mistakes.

I’ve had a few client conversations lately that reminded me of something I see often: many DIY investors who are confident managing their portfolios still leave major gaps in their estate planning.

It’s understandable. Estate planning feels like a one-and-done task, and it doesn’t generate returns the way investing does. But the truth is, even a solid will can create confusion, conflict, or unintended costs if it’s not thoughtfully designed and regularly reviewed.

Here are five common mistakes that come up more often than you might think.

1. Choosing the Wrong Executor

Your executor will be responsible for handling your estate – paying debts, filing taxes, distributing assets, and managing the paperwork. It’s a big job, and not everyone is equipped for it.

The mistake I see is defaulting to someone close like a spouse, sibling, or adult child without thinking about whether they have the time, temperament, or financial knowledge to manage the role. And if that person is aging, has health issues, or lives far away, the task becomes even harder.

The right executor is someone you trust and someone capable of carrying out the responsibilities efficiently.

 2. Not Updating the Will After Major Life Changes

A will that was perfect five years ago might be out of date today.

Major life events such as marriage, separation, divorce, births, deaths, business exits, or the sale of key assets, can all change your intentions. But the legal system won’t assume your wishes just because your circumstances have changed.

In most Atlantic provinces (Nova Scotia, New Brunswick, and Newfoundland & Labrador), a legal divorce can revoke gifts to your ex-spouse in your will and remove them as executor, but a legal separation does not. If you’re separated but not divorced, your ex may still inherit and manage your estate.

Even more importantly, divorce or separation does not automatically revoke Powers of Attorney. That means your ex-spouse could still be legally authorized to make financial or medical decisions on your behalf unless you change the documents.

A simple review every few years or after any major life event goes a long way in keeping your estate plan relevant.

 3. Overlooking the Tax Consequences

Many investors are surprised by the tax bill their estate might face. For example:

• RRSPs and RRIFs are fully taxable at death unless rolled over to a spouse by beneficiary designation.
• Capital gains on non-registered investments may be triggered.
• Certain trusts or corporate structures may have tax implications if not managed properly.

The result? Your estate could owe more to CRA than you expect, leaving less for your heirs.

A good estate plan doesn’t just say who gets what.  It considers how to pass things on in the most tax-efficient way possible.

 4. Unclear or Missing Beneficiary Designations

Not all assets are governed by your will. In fact, many common accounts like RRSPs, TFSAs, and life insurance policies pass outside your estate entirely, if a beneficiary is named.

But that only works if:

• The designation is up to date
• The person named is still who you want to benefit
• There’s clarity in how it fits with your overall estate plan

If you forget to update a designation after a divorce or death, or if you leave it blank, the asset could end up going through probate or worse, to the wrong person.

 5. Not Sharing the Location (or Existence) of the Will

Even the best will is useless if no one can find it.

I’ve seen situations where a will was stored safely (but silently) in a drawer or on a hard drive, and the executor had no idea it existed. In those cases, the estate may be settled as if no will was ever made.

Make sure your executor knows:

• That the will exists
• Where the signed copy is stored
• Whether older versions have been destroyed

A short conversation now can save your family months of stress later.

A Final Word

Your investment plan might be a DIY success, but estate planning is a team sport.

You don’t need to make things overly complex. But you do need to ensure your will, POAs, and beneficiary designations reflect your current life and goals.  And that they work together to carry out your intentions.

If you’re not sure where your documents stand, or you’re due for a review, I’d be happy to walk through it with you.

P.S. If this post helped simplify your thinking, or reminded you of someone navigating a similar decision, feel free to share it.

David Martin is an Advice-Only Financial Planner in Halifax NS, serving Atlantic Canada DIY investors and business owners.

I help DIY investors in Atlantic Canada gain financial confidence.  Contact me today to schedule a free consultation and start your journey towards financial independence.

Connect with David on LinkedIn.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment and tax-related decisions. You should seek independent financial advice from a financial advisor near you.