Letter of Wishes (Canada)

A Letter of Wishes in Canada gives the trustee or executor non-binding guidance on how to exercise their discretion, governed primarily by the Succession Law Reform Act (R.S.O. 1990, c. S.26).

In Canadian estate planning, a letter of wishes serves several important functions. It allows the testator to explain the reasoning behind their will — for example, why certain beneficiaries received specific assets or why unequal distributions were made, which can help prevent family conflicts and contested estate proceedings.

Because a letter of wishes is not legally binding, it offers flexibility that a formal will cannot. It can be easily updated without the formalities required to amend a will (two adult witnesses, legal capacity). This makes it ideal for instructions that may change over time, such as funeral preferences, distribution of personal items, or guidance on running a family business.

For trustee-administered trusts in Canada, a letter of wishes addressed to the trustee can guide the exercise of the trustee's discretionary powers — for example, how trust distributions should be weighted among beneficiaries, or the testator's philosophy on financial support. While not binding, Canadian courts have recognized that trustees should consider letters of wishes when exercising discretion.

In common law provinces, the Trustee Act of each province governs the duties of executors and trustees. Ontario's Trustee Act (R.S.O. 1990, c. T.23) and the Estates Administration Act (R.S.O. 1990, c. E.22) provide the framework within which an estate trustee operates. The Office of the Public Guardian and Trustee in Ontario and equivalent bodies in other provinces supervise the administration of estates where disputes arise. In British Columbia, Section 96 of the Wills, Estates and Succession Act empowers the Supreme Court of British Columbia to give directions to a personal representative about carrying out the will. The Canada Revenue Agency requires executors to file a final T1 return and clearance certificate under Section 159 of the Income Tax Act before distributing estate assets. A letter of wishes can assist the executor in making discretionary decisions — such as whether to sell or transfer a family business — that affect the tax position of the estate.

Digital estate planning has made letters of wishes increasingly important in Canada. The Personal Information Protection and Electronic Documents Act (PIPEDA) Section 4.3 and provincial privacy legislation in Alberta (PIPA) and British Columbia (PIPA) govern access to digital personal information after death. Social media platforms, cryptocurrency wallets, and cloud storage services each have their own access policies. A letter of wishes can identify the location of password managers, instructions for digital account executors, and preferences for the memorialization or deletion of social media profiles — guidance that falls outside the formal scope of a will governed by Section 4 of Ontario's Succession Law Reform Act or Section 37 of BC's WESA. Quebec's Act respecting the protection of personal information in the private sector (R.S.Q. c. P-39.1) Section 25 also addresses the rights of heirs to access the personal information of a deceased person, reinforcing the value of a letter of wishes that explicitly addresses digital assets and online account management.

When you want to explain the reasoning behind your will to prevent family disputes — particularly useful if you have made unequal distributions among children or excluded certain individuals.

When you want to provide funeral and burial instructions that may change over time without having to update your formal will.

When you want to leave personal messages to specific family members, friends, or loved ones that are too personal for a formal legal document.

When you want to guide your executor on the distribution of personal items (jewelry, artwork, family heirlooms) not specifically listed in your will.

When you want to give your trustees guidance on how to exercise discretionary powers in trust administration, such as priorities for educational support or business succession. Ontario's Trustee Act (R.S.O. 1990, c. T.23) Section 27 and British Columbia's Trustee Act (R.S.B.C. 1996, c. 464) Section 15.2 govern the investment and administrative duties of trustees; a letter of wishes can supplement these statutory obligations by expressing your values and priorities for trust distributions.

When you hold digital assets — cryptocurrency, online investment accounts, or intellectual property — that may not be addressed in your formal will. A letter of wishes can provide executors with access credentials and preferences for these assets, complementing the deemed disposition rules under Section 70 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Supp.)) that treat digital property like any other capital property on death. The Canada Revenue Agency requires the executor to report all capital gains triggered by deemed disposition on the terminal T1 return, making clear identification of all assets critical to the estate administration process.

When you are a business owner and want to provide guidance on succession without amending your formal shareholders' agreement. The Canada Business Corporations Act (R.S.C. 1985, c. C-44) Section 146 governs unanimous shareholder agreements, and provincial corporate statutes contain comparable provisions. A letter of wishes can communicate your intentions about whether a family business should be sold or continued, which family members should be involved in management, and how the executor should work with the remaining shareholders during the estate administration period — guidance that supplements but does not legally bind the executor's duties under the Trustee Act and provincial corporate legislation.

Personal Introduction — A statement of who you are and that this document accompanies your will, with the date it was written. Reference the will by date and the name of the estate trustee appointed under it.

Funeral and Burial Wishes — Your preferences for burial or cremation, funeral arrangements, religious observance, and disposition of remains. These are not legally binding but guide your executor. In Ontario, Section 2 of the Funeral, Burial and Cremation Services Act (S.O. 2002, c. 33) governs funeral and burial services, and funeral homes are licensed by the Bereavement Authority of Ontario.

Personal Messages — Private messages to family members, friends, or loved ones that you wish to leave behind. These messages fall outside the formal requirements of the Succession Law Reform Act and can be freely worded without legal formality.

Guidance on Personal Items — Instructions for the distribution of sentimental items not specifically bequeathed in your will. Describe each item clearly so the estate trustee can identify it without ambiguity. The Canada Revenue Agency treats the deemed fair market value of personal property transferred at death as proceeds of disposition under Section 70 of the Income Tax Act.

Explanation of Will Decisions — Context for any unusual, unequal, or potentially contested distribution decisions. In Ontario, dependants may apply under Part V of the Succession Law Reform Act (R.S.O. 1990, c. S.26) for support from the estate. A letter of wishes explaining the testator's reasoning can assist the Superior Court of Justice in understanding the intended distribution if an application is made.

Trustee Guidance — Instructions for trustees on how to exercise discretionary powers in any trusts established by your will. Reference the trust by name and the applicable provisions of the provincial Trustee Act. In British Columbia, Section 15.2 of the Trustee Act (R.S.B.C. 1996, c. 464) governs investment duties.

Digital Assets — Guidance on social media accounts, digital files, and online assets not covered by your formal will. Reference the location of password managers and digital account credentials. The Personal Information Protection and Electronic Documents Act (PIPEDA) and provincial privacy legislation govern how digital personal information is handled after death.

Date and Signature — Sign and date the letter, though witnessing is not legally required. Store with your will but not inside the sealed will document. Inform your estate trustee of the letter's location. Forms-legal.com provides this template as a starting point for Canada estate planning.

Contestation risk management is one of the most valuable functions of a letter of wishes. In Ontario, Section 63 of the Succession Law Reform Act allows dependants to apply to the Superior Court of Justice for support from the estate if the will fails to make adequate provision. In British Columbia, Section 60 of WESA grants spouses and children the right to apply for variation of the will. Alberta's Wills and Succession Act Section 72 and the Adult Interdependent Relationships Act provide comparable rights for adult interdependent partners. A letter of wishes that clearly explains unequal distributions, the testator's reasons for excluding certain individuals, or the testator's understanding of each beneficiary's independent financial circumstances can materially influence the court's assessment of whether the will represents a fair and valid exercise of testamentary autonomy. The letter should be dated, signed, and ideally prepared contemporaneously with the will to establish that it reflects the testator's genuine and considered intentions.