Planning for Continuity: Why Succession Isn’t Just for Your Estate
Why Continuity Deserves a Place in Your Plan
Financial strategies often focus on investments, taxes, and estate structures. But as life progresses, it becomes just as important to prepare for the continuity of people—the ones you rely on, and the ones who rely on you.
Transitions are a normal part of life. Whether through retirement, illness, or cognitive decline, roles and responsibilities inevitably shift. A contingency plan ensures that when they do, your affairs remain steady and your intentions clear. It’s not about anticipating catastrophe—it’s about exercising care, foresight, and leadership.
When Advisors Retire or Step Away
Many Canadians depend on a network of professionals—legal, tax, and financial—to support their long-term goals. But not every professional relationship is designed with transition in mind.
As of January 1, 2025, the Law Society of Ontario now requires lawyers and paralegals in private practice to have formal contingency plans in place. These plans are meant to protect clients in the event the professional can no longer operate their practice. It’s a sign of how important succession planning has become—not just for clients, but within the professional community itself.
If you work with a lawyer, accountant, or financial advisor, it’s worth asking: If they were no longer able to continue, what happens to my file? Who would step in? Reputable professionals should have a clear, documented answer.
For Self-Directed Investors: Future-Proof Your Portfolio
A growing number of Canadians—especially Baby Boomers—have taken a self-directed approach to managing their portfolios. With the growth of low-cost trading platforms and ETFs, many have done this successfully for decades. But few consider what happens if they are no longer in a position to manage things directly.
Often, one spouse handles investment decisions. If that person loses capacity or passes away first, the surviving spouse may be left without the knowledge or tools to step in. In some cases, adult children may be expected to take over, only to find themselves overwhelmed or uninterested.
The result? Families scrambling to hire help under pressure, often during already difficult times.
Even for the most seasoned investors, documenting the investment strategy and account information—and naming a backup or outlining a transition path—is a prudent step. It's not about handing over control prematurely. It’s about ensuring clarity when it's needed most.
Review Your Estate Documents—People Age, Too
Many Canadians create wills, powers of attorney, or representation agreements and assume the job is done. But these documents are only as strong as the people named in them—and those individuals are aging, too.
It’s common to name parents, siblings, or a spouse in your 40s or 50s. But by your 60s or 70s, they may no longer be the most suitable choice. Reviewing your appointments every few years—especially for powers of attorney or health directives—ensures your plan still works in practice, not just on paper.
If a reliable family member or friend is not available, consider a trust company or professional executor. These options provide long-term consistency and remove potential burdens from your loved ones.
Trusted Contact Person: A Simple, Effective Layer of Protection
In 2021, Canadian regulators introduced the concept of a Trusted Contact Person (TCP) as part of the “know your client” process. A TCP is someone your advisor can contact if they are concerned about your well-being, financial exploitation, or cognitive health. This person doesn’t make financial decisions and isn’t a substitute for a power of attorney—but they can help prevent harm and ensure intervention when it’s needed.
Financial planners regulated under FP Canada were also required, as of 2024, to collect TCP information. It’s a small administrative task with potentially significant benefit—particularly as vulnerabilities increase with age.
Planning Ahead Is a Responsibility—Not Just a Preference
Contingency planning is not about assuming the worst—it’s about ensuring readiness. Whether you manage your own investments or work with professionals, preparing for change strengthens your plan and eases the path for those who may need to step in.
As roles evolve and circumstances shift, having a documented, up-to-date plan for who will continue the work—and how—offers peace of mind for you and those you care about.
If it’s been a while since you revisited your estate documents or discussed succession with your advisors, now is a good time to do so.
Disclaimer: The information in this article is for informational and educational purposes only and is not meant to be construed as financial advise. Please consult with a qualified financial advisor before making any financial decisions.
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