Good intentions don’t always translate into good outcomes.

Learning from Experience: What Bernard’s Story Teaches Us Smart Planning

Crystal Mirkazemi | WBN News – Vancouver | January 12, 2026  

Estate planning and distribution of investments. What could go wrong? Here’s a story of a father who aimed to divide his estate equally between his sons.

Bernard, a widower, sold his home and settled into a comfortable rental townhome at a new retirement village. Once he’d invested the equity from his primary residence, his non-registered investment portfolio was about equal to his RRIF balance. Because a RRIF with a named beneficiary doesn’t pass through probate, Bernard opted to name a beneficiary to save on probate fees. He named his eldest son, Stephen as beneficiary, and to offset that bequest, named his other son, Jeremy, as the heir to his estate, which consisted solely of the non-registered investment portfolio. Even Steven! Or so he thought.

When Bernard passed away, it was time to settle up with the CRA. Jeremy was pleased to learn that there’d be very little income tax associated with the non-registered investment portfolio because there’d been almost no investment growth. But Bernard’s RRIF was fully taxable! Jeremy had to tell his brother, “Our inheritances aren’t so even, Stephen”. Since Stephen was named beneficiary of the RRIF, it was payable to him, in full, by the bank. But its tax liability was the responsibility of Bernard’s estate and had to be paid from the non-registered portfolio willed to Jeremy. The match wasn’t even close.

Fortunately for these two brothers, their relationship was rock solid, and they were keen to see their dad’s estate divided equally between them. They knew this was their father’s wish, because they’d had a family huddle to discuss it and their dad had also documented his intentions. Stephen and Jeremy split the tax bill equally from the proceeds of their inheritances. Even Steven!

Consider this…

• While naming a beneficiary (other than the estate) on certain financial instruments means they won’t be subject to probate fees, any tax payable on death is the responsibility of the estate unless the spouse is the beneficiary, then there is no tax liability.
• When planning, consider the after-tax value of your assets, or account for taxation in your planning.
• If the heirs of the estate are receiving equal portions, naming them equally as beneficiaries on the financial instrument keeps things even-steven.

Here are a few lessons anyone can apply from Bernard’s experience:

🔸 Consider the after-tax value of your assets. Not all dollars are created equal — some accounts carry tax burdens that can dramatically change what heirs actually receive.

🔸 Align beneficiary designations with your intentions. Naming heirs directly on accounts is powerful, but doing so without understanding tax rules can create unintended inequality.

🔸 Communicate clearly with family. Open discussions about your plans help avoid confusion, conflict, and regret later. Knowing your wishes ahead of time allows loved ones to act with confidence and unity.

Bernard’s story reminds us that experience is a teacher. By planning with foresight, understanding tax implications, and communicating clearly, you can help ensure your legacy reflects your true intentions — without surprise burdens for those you care about most.

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Crystal Mirkazemi | WBN News – Vancouver

My mission is to empower you to think big and build solutions for your family and business. Every milestone of life's journey is a chance to appreciate a financial plan. As I always say: Your most significant asset to be independent lies in your attitude towards money.

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#Wealth Transfer #Protect Your Legacy