>
Estate Planning for Parents With Minor Children in Alberta
Wills & Estates
Estate Planning for Parents With Minor Children in Alberta
19 min read
min
Estate Planning for Parents With Minor Children in Alberta
Introduction
Few life events change your priorities as dramatically as becoming a parent.
From the moment your child is born, your focus shifts from planning for yourself to protecting someone else. You make decisions every day about their health, education, and future. Yet many parents overlook one of the most important decisions they may ever make—what would happen if they were no longer here to care for them.
It is not an easy subject to think about. No parent wants to imagine a future where their children grow up without them. However, taking the time to prepare a comprehensive estate plan is one of the greatest gifts you can leave your family. Rather than creating uncertainty during an already heartbreaking time, a well-prepared plan provides guidance, financial security, and peace of mind for the people you love most.
Many people believe estate planning simply determines who receives their assets after they die. For parents of minor children, it is much more than that. It is about choosing who will raise your children, determining how their inheritance should be managed, protecting their financial future, and ensuring your wishes are clearly documented.
A properly prepared estate plan cannot eliminate the emotional impact of losing a parent, but it can reduce uncertainty and provide stability when your children need it most.
What Does Estate Planning for Parents Mean?
Estate planning is the process of preparing legal documents and making important decisions that protect your family if you become incapacitated or die.
For parents with young children, estate planning goes well beyond deciding who inherits your home, investments, or personal belongings.
It also involves making thoughtful decisions about the people who will care for your children and the financial resources they will need while growing up.
Some of the most important questions include:
Who would you want to raise your children if both parents were to die?
Who should manage your children's inheritance?
At what age should your children receive their inheritance?
Should someone different manage the money than the person raising the children?
How will your children's education, housing, and daily living expenses be paid?
What happens if your first choice of guardian is unable or unwilling to act?
Have you provided enough financial resources to support the people caring for your children?
These are deeply personal decisions. There is no single solution that works for every family.
A carefully prepared estate plan allows you to make these decisions yourself, rather than leaving difficult questions for your loved ones—or, in some cases, the Court—to resolve after your death.
What Does Alberta Law Say?
In Alberta, wills are governed primarily by the Wills and Succession Act, while the administration of an estate is governed by the Estate Administration Act.
Parents commonly include a statement in their will expressing who they would like to care for their minor children if both parents die. While this expression of wishes carries significant weight and is an important factor for the Court to consider, it is important to understand that a parent cannot permanently appoint a guardian through a will alone.
If there is no surviving parent or legal guardian, the ultimate authority to appoint a guardian rests with the Court under Alberta's Family Law Act. In making that decision, the Court's primary consideration is always the best interests of the child.
Fortunately, where parents have thoughtfully named appropriate guardians in their will, their wishes are often given considerable respect, provided the proposed guardians are willing and able to assume the responsibility.
A properly drafted will also allows parents to appoint trustees to manage assets left for their children, establish trusts, provide guidance on how funds should be used, and appoint alternate individuals if their first choices cannot act.
By taking these steps in advance, parents provide valuable direction that can help reduce uncertainty and make an already difficult time a little easier for their loved ones.
Choosing the Right Guardian for Your Children
For most parents, this is the most emotional part of estate planning.
Choosing who should raise your children if you are no longer able to do so is not simply a legal decision—it is a deeply personal one. Many parents struggle with the idea because they worry about hurting the feelings of family members or because they simply cannot imagine anyone else raising their children.
The reality is that naming a preferred guardian is one of the most important decisions you can make. While no one can replace a parent, thoughtfully choosing the person—or people—you trust most provides valuable guidance if the unthinkable were to happen.
Rather than leaving your family to debate who should assume responsibility for your children, your will allows you to clearly express your wishes.
What Does a Guardian Do?
A guardian is responsible for making the day-to-day decisions involved in raising a child.
These responsibilities generally include:
providing a safe and stable home;
ensuring the child's daily needs are met;
making decisions about education;
arranging medical care;
supporting the child's emotional and social development;
participating in extracurricular activities; and
helping the child maintain important family relationships where appropriate.
In many cases, the guardian assumes the role that the parents previously fulfilled, providing stability and consistency during an incredibly difficult time.
Because this responsibility is so significant, choosing a guardian deserves careful thought and discussion.
What Qualities Should You Look For?
Every family is different, and there is rarely a "perfect" choice.
Instead, consider who would provide the environment that most closely reflects the values and upbringing you hope for your children.
Questions you may wish to consider include:
Does this person genuinely want to raise children?
Are they emotionally capable of taking on this responsibility?
Do they have a stable home environment?
Are they financially responsible?
Do they share similar values regarding education, discipline, religion, or lifestyle?
What kind of relationship do they already have with your children?
Are they healthy enough to care for young children over the long term?
Are they likely to remain in Alberta or Canada?
Would they encourage your children to maintain relationships with extended family?
There are no right or wrong answers. The goal is to identify the person you believe would provide the greatest stability and care for your children.
Should You Choose Family or Friends?
Many parents immediately think of grandparents, siblings, or close relatives.
Often, these individuals are excellent choices because they already have established relationships with the children and understand the family's values and traditions.
However, family members are not always the best option.
In some situations, a close family friend may be younger, healthier, live closer to the children's school and social supports, or simply be better suited to raising young children.
The most important consideration is not whether someone is related by blood—it is whether they are the right person for your children.
Practical Example
Emma and David have two children, ages six and eight.
Emma's parents are retired and deeply devoted to their grandchildren. However, they are in their late seventies and have several health concerns.
David's younger sister is in her thirties, has children of a similar age, lives only a few blocks away, and has a close relationship with both children.
Although Emma's parents love the children dearly, Emma and David decide that David's sister is better positioned to provide long-term stability while naming Emma's parents as alternate caregivers for short-term support if needed.
Their decision is based not on who loves the children more, but on who is most able to meet the children's needs over many years.
Should You Name More Than One Guardian?
Parents often wonder whether they should appoint more than one guardian.
For couples, it is common to name another couple—for example, a brother and sister-in-law—or to appoint one individual as the primary guardian with another person named as an alternate.
Naming alternate guardians is particularly important.
Life circumstances change. The people you choose today may move overseas, experience health issues, or simply become unable to accept the responsibility years later.
By naming alternate guardians, you provide additional guidance and reduce uncertainty if your first choice is unable to act.
As with the rest of your estate plan, you should review these appointments periodically to ensure they continue to reflect your wishes.
Should You Speak With the Guardian First?
In most cases, yes.
Although there is no legal requirement to obtain someone's permission before naming them in your will, it is generally a good idea to have an open and honest conversation beforehand.
Raising children is an enormous commitment.
The people you choose should understand:
why you selected them;
what responsibilities they may assume;
whether financial resources will be available for the children;
who will manage your children's inheritance; and
where important legal documents can be found.
These conversations are often emotional, but they can also provide reassurance to everyone involved.
Your chosen guardian may raise practical questions you had not considered, allowing you to refine your estate plan before it is needed.
Should the Guardian Also Manage the Money?
Not necessarily.
Many parents assume that the person raising their children should also manage the children's inheritance.
Sometimes this is entirely appropriate.
In other families, however, parents prefer to separate these responsibilities by appointing:
a guardian to raise the children; and
a trustee to manage the children's inheritance.
This arrangement creates an additional layer of oversight and may be particularly appropriate where substantial assets or life insurance proceeds are involved.
For example, the guardian may request funds from the trustee for expenses such as education, clothing, extracurricular activities, or medical needs, while the trustee ensures that the money is managed prudently and used for the children's benefit.
Whether the same person should act as both guardian and trustee depends entirely on your family's circumstances, the complexity of your estate, and the individuals involved.
Protecting Your Children's Inheritance
Naming a guardian is only part of protecting your children.
You also need to decide how and when your children will receive their inheritance.
Many parents are surprised to learn that simply leaving everything equally to their children may not produce the outcome they intended. If a child inherits a significant amount of money while still a minor, someone must manage those funds until the child is legally entitled to receive them.
A thoughtfully prepared will allows you to determine who will manage your children's inheritance, how it may be used while they are growing up, and when your children will receive control of their assets.
For many families, this is every bit as important as deciding who will raise the children.
What Is a Testamentary Trust?
A testamentary trust is a trust that is created through your will and comes into effect after your death.
Rather than distributing an inheritance directly to a child, the inheritance is held and managed by a trustee according to the instructions set out in your will.
The trustee has a legal duty to manage the money responsibly and use it only for the purposes permitted by the trust.
This allows your children's inheritance to be used for their benefit while protecting it until they are mature enough to manage it themselves.
Why Use a Testamentary Trust?
A testamentary trust provides flexibility that a simple outright gift cannot.
For example, the trust may authorize the trustee to use funds for:
housing and living expenses;
food and clothing;
medical and dental expenses;
private school tuition;
university, college, or trade school costs;
extracurricular activities;
counselling or therapy;
transportation; and
other expenses that support the child's health, education, maintenance, and overall well-being.
This allows the trustee to respond to the child's changing needs over time rather than providing one lump-sum payment.
Practical Example
Jennifer and Chris have two young daughters.
If both parents were to die unexpectedly, they want the girls to continue participating in competitive gymnastics, attend university, and remain in the same community whenever possible.
Rather than leaving each daughter a lump sum, their will establishes a testamentary trust. The trustee is authorized to pay for housing, education, sports, medical care, and other reasonable expenses while the girls are growing up.
When each daughter reaches the ages selected by Jennifer and Chris, the remaining trust funds are distributed according to the terms of the will.
Their estate plan provides both financial security and flexibility while the children are still developing into independent adults.
At What Age Should Children Receive Their Inheritance?
One of the most important decisions parents make is determining when their children should receive their inheritance.
Many people assume children automatically receive their inheritance at age 18. While that can occur in some circumstances, your will can often provide for a later distribution through a properly drafted trust.
Many parents feel that receiving a substantial inheritance immediately upon reaching adulthood may not always be in a young person's best interests.
Instead, they may choose to delay full distribution until an age they believe reflects greater financial maturity.
Some parents choose a single distribution age, while others prefer a staged approach.
For example, a will may provide for:
a portion of the inheritance at age 25;
another portion at age 30; and
the balance at age 35.
A staged distribution can provide financial assistance during important stages of adulthood while encouraging long-term financial responsibility.
The appropriate age depends entirely on your family's circumstances, the size of the estate, and your personal wishes.
Choosing the Right Trustee
A trustee manages the trust assets for the benefit of your children.
This person should be:
trustworthy;
financially responsible;
organized;
capable of making objective decisions;
willing to act over many years; and
able to keep accurate financial records.
Managing a trust often involves investing assets, paying expenses, maintaining records, preparing tax information, and communicating with beneficiaries.
Because these responsibilities can continue for many years, choosing the right trustee is just as important as choosing the right guardian.
Should the Guardian and Trustee Be the Same Person?
There is no single answer.
In some families, appointing the same individual as both guardian and trustee works very well.
The person raising the children already understands their daily needs and can make practical financial decisions without consulting someone else.
In other families, parents prefer to separate these responsibilities.
For example, a sibling may raise the children while another trusted family member, accountant, or professional trustee manages the inheritance.
Separating these roles can provide additional oversight, particularly where the estate is substantial or where significant life insurance proceeds will be held for many years.
Your estate planning lawyer can help you determine which approach best suits your family's circumstances.
Providing Guidance to Your Trustee
One of the greatest advantages of a professionally drafted will is the opportunity to provide meaningful guidance.
While you cannot anticipate every circumstance, you can include instructions that help your trustee understand your priorities.
For example, you may wish to express your hopes regarding:
educational opportunities;
extracurricular activities;
support for post-secondary education;
purchasing a first home;
assistance during medical emergencies;
financial support for special opportunities; or
preserving funds for future milestones.
These instructions are not intended to control every decision. Rather, they provide helpful guidance so the trustee understands how you hoped your children's inheritance would be used.
Thoughtful instructions can reduce uncertainty and help ensure your values continue to influence important decisions long after you are gone.
Choosing the Right Executor
Your executor (known in Alberta legislation as a personal representative) is responsible for administering your estate.
While the guardian focuses on caring for your children and the trustee manages their inheritance, the executor has the important responsibility of collecting your assets, paying debts and taxes, obtaining probate if required, and distributing your estate according to your will.
Ideally, your executor should be someone who is:
trustworthy;
organized;
financially responsible;
capable of handling legal and financial matters;
willing to accept the responsibility; and
able to communicate effectively with your beneficiaries.
For many families, the executor, guardian, and trustee may all be the same person. In other situations, appointing different individuals for each role may better suit your family's circumstances.
The most important consideration is choosing people you trust to work together in your children's best interests.
Making Sure There Are Enough Financial Resources
Many parents focus on deciding who will care for their children but give less thought to how those children will be financially supported.
Your estate plan should consider whether your estate contains sufficient assets to provide for your children's needs.
Many young families rely on life insurance to create financial security if one or both parents die unexpectedly.
Life insurance proceeds can help provide funds for:
daily living expenses;
mortgage payments;
childcare;
education;
extracurricular activities;
post-secondary education; and
other costs associated with raising children.
Reviewing your life insurance coverage whenever your family grows or your financial circumstances change is an important part of estate planning.
It is also important to ensure that your beneficiary designations work together with your overall estate plan. In some circumstances, naming an individual beneficiary rather than your estate may affect how those funds are managed after your death. Before making beneficiary designations, you should obtain legal advice to ensure they align with your broader estate planning objectives.
What Happens if Both Parents Die Together?
Although no one wants to contemplate this possibility, it is one of the most important situations to plan for.
If both parents die in the same accident or within a short period of one another, your estate plan should clearly identify:
who you wish to care for your children;
alternate guardians if your first choice cannot act;
who will administer your estate;
who will manage your children's inheritance; and
how your assets should be used to support your children's upbringing.
Without clear instructions, family members may have differing views about what should happen, potentially creating additional stress during an already emotional time.
A comprehensive estate plan helps provide direction when your loved ones need it most.
Blended Families
Estate planning can become more complex when one or both parents have children from previous relationships.
Parents often want to ensure that:
their current spouse is financially secure;
children from previous relationships are treated fairly;
children born during the current relationship are also protected; and
future disputes are minimized.
Achieving these objectives may require more detailed planning than a simple will can provide.
If you have a blended family, it is especially important to obtain legal advice to ensure your estate plan reflects your wishes and balances the needs of everyone involved.
Children With Disabilities or Additional Support Needs
Parents of children with disabilities or ongoing support needs often have additional planning considerations.
A child may require financial assistance well beyond the age at which most young adults become independent.
Your estate plan may need to address:
long-term financial support;
ongoing medical and personal care;
housing arrangements;
the management of assets over an extended period; and
protecting eligibility for government benefits where appropriate.
These situations often require customized planning. An estate planning lawyer can help structure your will in a way that supports your child while taking into account their unique needs and long-term circumstances.
Keep Your Estate Plan Up to Date
Preparing a will is not something you do once and forget about.
As your children grow, your estate plan should grow with them.
You should review your estate plan whenever there is a significant change in your life, including:
the birth or adoption of another child;
marriage or separation;
purchasing or selling a home;
significant changes in your finances;
moving to another province;
the death or incapacity of your chosen guardian, trustee, or executor; or
any other major change affecting your family.
Even if nothing significant has changed, reviewing your estate plan every three to five years is a good practice. It provides an opportunity to ensure your documents continue to reflect your wishes and remain appropriate for your family's current circumstances.
Practical Example
Ryan and Melissa prepared their wills shortly after the birth of their first child. They appointed Ryan's brother as guardian and established a trust until their daughter reached age 25.
Ten years later, they have three children, have purchased a larger home, accumulated substantial investments, and Ryan's brother has relocated to Australia.
By reviewing their estate plan, they appoint new guardians who live nearby, update the trust provisions to include all three children, increase their life insurance coverage, and revise their executor appointments.
Although their original wills were still legally valid, updating them ensured that their estate plan continued to meet their family's changing needs.
Common Mistakes Parents Make
Even parents who have taken the important step of preparing a will sometimes overlook key aspects of estate planning. The following are some of the most common mistakes—and how they can be avoided.
Waiting Too Long to Prepare a Will
Many young parents believe estate planning is something they can address later in life.
Unfortunately, accidents and unexpected illnesses can occur at any age. Delaying your estate plan means that important decisions about your children may be left to others if the unexpected happens before your wishes are documented.
Preparing a will shortly after the birth or adoption of a child provides peace of mind and ensures your family is better protected.
Focusing Only on Guardians
Parents often believe that choosing a guardian is the entire purpose of estate planning.
While selecting the right guardian is extremely important, it is only one part of a comprehensive plan.
You should also consider:
who will administer your estate;
who will manage your children's inheritance;
how the inheritance will be invested and distributed;
whether trusts should be established; and
whether your family has sufficient financial resources to support your children's future.
A comprehensive estate plan addresses both your children's care and their long-term financial security.
Choosing the Wrong People
Parents sometimes appoint relatives simply because they feel obligated to do so.
The best choice is not necessarily the oldest sibling or the closest relative. Instead, consider who is most capable of providing a loving, stable home and who has the ability and willingness to take on the responsibility.
Similarly, your executor and trustee should be selected based on their skills, judgment, and reliability rather than family expectations.
Forgetting to Name Alternate Guardians, Trustees, and Executors
Life changes.
The individuals you choose today may later experience health problems, move away, or simply become unable to act.
Naming alternates provides flexibility and helps ensure your estate plan can still be carried out if your first choice is unavailable.
Without alternates, additional court applications or delays may become necessary.
Not Reviewing Your Estate Plan
Children grow, families change, and financial circumstances evolve.
A will prepared when your first child was born may no longer reflect your family's needs ten or fifteen years later.
Regular reviews help ensure that:
your guardians remain appropriate;
your executor and trustee appointments are current;
your trust provisions continue to reflect your wishes; and
your overall estate plan remains consistent with your family's circumstances.
When Should You Speak With an Estate Lawyer?
Although every parent should have a properly prepared will, some family situations require additional planning.
You should consider speaking with an estate planning lawyer if:
you have minor children;
you have children from a previous relationship or a blended family;
your child has a disability or ongoing support needs;
you own a business or professional corporation;
you own property outside Alberta;
you expect your children to receive a significant inheritance;
you wish to establish trusts;
you have substantial life insurance proceeds;
you are unsure who should serve as guardian, trustee, or executor; or
it has been several years since your estate plan was last reviewed.
An experienced estate planning lawyer can help ensure your documents reflect your wishes, comply with Alberta law, and provide the greatest possible protection for your family.
How Bridgestone Law Can Help
At Bridgestone Law, we understand that estate planning for parents is about much more than preparing legal documents. It is about protecting your children, preserving your family's financial security, and providing clarity during what would otherwise be an incredibly difficult time.
Our lawyers work with parents throughout Calgary and Alberta to prepare wills, establish testamentary trusts, appoint executors and trustees, and develop comprehensive estate plans tailored to each family's unique circumstances. We also assist clients with Enduring Powers of Attorney and Personal Directives so that every aspect of their estate plan works together.
Whether you are welcoming your first child, updating an existing will, or planning for a growing family, we can help you create an estate plan that reflects your wishes and provides peace of mind for the future.
Related Articles...
Receive practical legal updates and new resources from Bridgestone Law.
QUICK LINKS
PRACTICE AREAS
Wills & Estates
Probate Services
Family Law
Mediation (ADR)
Domestic Contracts
Litigation
Notary Services
CONTACT