I want my $2.5M estate to pass only to my son — not his wife. How can I legally ensure the inheritance stays solely with him?

When preparing a will, it’s not uncommon for awkward family dynamics to complicate the process.

Imagine Joan, a 73-year-old widow who lives in a $1.5-million house and has roughly $1 million saved. Joan recently started working on her will, and wants to leave her entire estate to her son, Roger. But there’s a catch: Joan wants to exclude her daughter-in-law’s entitlement to anything she leaves to Roger.

In fact, Joan would like to ensure that Roger’s wife never gets her hands on this money — even if she ends up outliving Roger. Joan never got along with her daughter-in-law and would feel a lot better if she knew Roger’s wife would never get a cut of the cash.

According to a 2022 study, situations like Joan’s are fairly common: As many as 15% of men and 60% of women reported having more conflict with their mothers-in-law than with their own mothers (1). These uncomfortable situations can make estate planning much more difficult — but that doesn’t mean Joan can’t have her final wishes met.

The drawbacks of a will

For most people, having a will is the best way to determine how their money and property will be distributed among their heirs. But research shows that many people over the age of 55 still don't have a will. A 2024 survey from Narrative Research found that only 43% of Canadians have a last will and testament (2).

Having a will is a solid way to leave money and property to your children, but in Canada, it's not the only way to protect who inherits your assets. For example, if Roger inherits his mother’s estate and holds the assets solely in his name — separate from marital property — those assets are generally protected under provincial family-property laws, even if Roger and his wife divorce (3). However, if Roger were to mix his inheritance with his marital assets — depositing funds into a joint bank account he shares with his wife, or using inherited money to make improvements to a shared home — those funds may be considered marital property and be subject to division between Roger and his wife if they were to split up (4).

Additionally, Roger has the freedom to leave any assets he inherits from his mother, Joan, to whomever he chooses — including his wife. So, if he were to die first, his wife could potentially inherit everything, depending on how Roger structures his own estate plan.

While Joan likely won’t be pleased with these potential outcomes, there’s an option available to her or anyone else looking to leave a sizable estate behind after death: Allocate the estate assets in a trust.

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Why it’s beneficial to put your estate in a trust

One of the most effective ways to protect your legacy is to leave your estate in a trust. A trust can legally protect your money and property while ensuring assets are distributed according to your wishes. With a trust, you appoint a trustee — someone who manages the assets on behalf of the beneficiaries.

Here are several types of trusts that can help you protect your estate:

• Living trust (inter vivos trust): A living trust (inter vivos trust) takes effect while you’re alive. In Canada, many living trusts are revocable, meaning they can be amended or cancelled, but this flexibility generally limits any asset-protection benefits. Living trusts involve ongoing administrative responsibilities, including annual trust tax filings. Depending on how the trust is structured, income earned in the trust may be taxed at the trust level or attributed back to you under Canada Revenue Agency (CRA) rules, which can increase complexity and costs (5).
• Irrevocable trust (irrevocable inter vivos trust): This type of trust may be used in Canada for long-term estate or asset-planning purposes, including probate planning and, in some cases, asset protection. Because the assets are no longer legally owned by you once transferred to the trust, they may be insulated from certain creditor or family-law claims if the trust is properly structured and established well in advance of any dispute. However, irrevocable inter vivos trusts are subject to complex tax and reporting rules, are generally taxed at the highest marginal rate on retained income, and can involve significant setup and ongoing administration costs (6).
• Henson Trust: A Henson Trust is a type of discretionary trust commonly used in Canada when a beneficiary has a disability. It is designed to provide financial support after your death while preserving the beneficiary’s eligibility for means-tested government benefits, such as the Ontario Disability Support Program (ODSP) (7). With a Henson Trust, the trustee has absolute discretion over whether, when and how much income or capital is distributed to the beneficiary, which is key to maintaining benefit eligibility (8).
• Discretionary trust: This option is commonly used in Canada when leaving an inheritance to a beneficiary who may have difficulty managing money. The trustee has discretion over whether, when and how much income or capital is distributed to the beneficiary, in accordance with the terms of the trust. A discretionary trust may be appropriate for beneficiaries with substance-use issues, gambling problems or compulsive spending habits, as it allows assets to be protected while still providing financial support (9).
• Testamentary trust: A testamentary trust is created through your will and takes effect only after your death. You maintain control over your assets during your lifetime and can change the will terms at any time before you die (it is generally created within a will). This type of trust allows you to define detailed rules for how your estate should be used — whether you want to provide an allowance, set age-based distributions or specify approved uses such as education or buying a home (10).

If your situation is similar to Joan’s, a trust can give you precise control over when and how your estate is used. Because beneficiaries don’t have a guaranteed right to the assets, the trust also helps protect the inheritance from misuse, creditors or other risks.

Bottom line

If you’re like Joan, and want your estate to stay with your children and not their spouses, a simple will might not give you the control you seek. Using the right kind of trust lets you set clear rules over how the money can be used — and helps protect the inheritance from relationship breakdown, poor money management or unexpected life events. To ensure your wishes are legally enforceable, it’s worth working with an estate lawyer to draw up a trust that best protects your legacy.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

BBC (1); Narrative Research (2); Alves Law (3); Onyx Law Group (4); RBC Wealth Management (5); Strategic Wealth Protection (6); Planning Network (7); Cox & Palmer (8); Cidel (9); National Bank (10)