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Green Estates: How Eco-Conscious Canadians Are Rewriting Their Wills

Green Estates How Eco-Conscious Canadians Are Rewriting Their Wills

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In the age of climate awareness, Canadians are embracing a new kind of legacy. No longer content with leaving behind heirlooms and bank accounts, an increasing number are pursuing green estates: wills and trusts designed to protect the planet long after they’re gone. At Forum Estates LLP, we’ve seen this trend grow from a niche interest to a fundamental part of modern estate planning.

This post explores how eco-conscious Canadians are blending values and assets in estate strategies. We’ll look at the motivations behind green estates, practical ways to build them, relevant laws and tax implications, and what’s next on the legislative horizon.

1. From Forests to Fingerprints: The Emotional Foundation

We human beings are wired to want to matter. Conservation psychology shows that leaving a green legacy taps into deep emotional drives: to protect, to endure, to contribute to something larger. A study reveals that:
  • Nearly one-third expressed interest in legacy giving, though haven’t acted yet (hilborn-charityenews.ca)

2. What Is a Green Estate?

A green estate formalizes environmental values through legal mechanisms. This can include:
  • Residual bequests to ecocharities (e.g., Parks Canada Foundation or local conservation groups).
  • Specific asset gifts, like donating a conservation easement or forested land to a land trust.
  • Testamentary trusts dedicated to environmental goals, with trustees charged with ongoing oversight.
  • Green funeral clauses, such as natural burials, biodegradable caskets, and treeplanted memorials.
  • Charitable remainder trusts, which provide income during life and then transfer principal to green causes.

3. Legal & Tax Framework in Canada

Creating a green estate isn’t just poetic…it can be strategic.
  • A. Charitable Bequests
The Income Tax Act allows charities to issue tax receipts for gifts made through wills. This reduces estate taxes and benefits beneficiaries. With the federal government canceling the planned increase to the capital gains inclusion rate in March 2025, the existing 50% inclusion rate remains intact. This stability preserves the tax advantages of donating publicly traded securities directly through an estate.
  • B. Conservation Easements & Covenants
In provinces such as BC and Ontario, conservation covenants are legally binding tools that preserve land for conservation indefinitely. These easements can be donated during lifetime or directed through a Will.
  • C. Trust Structures

Trusts offer control and continuity. A testamentary trust can earmark funds for managing natural areas, renewable energy, or educational programs. Under the 21-year deemed disposition rule, capital gains hinge on planning…but the preserved 50% rate adds simplicity.

4. Recent Trends: Eco-Conscious Estate Planning in Canada

  • Younger Canadians, especially Millennials and Gen Z, are more likely to plan eco-gifts in their wills .
  • Organizations like Ecojustice Canada have launched “legacy giving” campaigns aimed at those who want their final act to be environmental protection (newswire.ca)
This reflects a global trend: estate planning is no longer just about people…it’s also about planet.

5. Stories from the Field

Meet Sarah and James, a couple in their early 40s. They own a forested property near Vancouver. Through a conservation covenant, they can place development restrictions on the land and direct posthumous management to a local land trust. Their Will sets up a trust to cover annual maintenance, educational signage, and community access.
Here’s what Sarah said:
I want to ensure that my grandchildren can wander those trails, see the old-growth, and learn why we fought to save it. That’s what legacy means for me.

6. Crafting a Green Estate: Step-by-Step

  • Step 1: Reflect on Values and Assets
Decide what matters most: wildlife corridors, water protection, climate education.
  • Step 2: Choose Structure: Will, Trust, Covenant, or All?
The Lifetime Capital Gains Exemption (LCGE) also saw a boost, rising from $1,016,836 to $1.25 million effective June 25, 2024, for qualified small business shares, farming, or fishing properties. (canada.ca)
  • Step 3: Choose Beneficiary or Trustees
Choose organizations that relate to your vision such as the local conservancies, national parks or academic organizations.
  • Step 4: Tax-smart Gifts

The gift of stocks or securities save capital and diminish the tax cost of the estate. 

  • Step 5: Make arrangements to Include Funeral Directions
My dead body I want to lay in the ground under a birch tree planted in my honour and I want a natural decomposition.

7. Relevant Legislation and Authority

  • Income Tax Act, Section 118.1 grants tax credits for charitable bequests.
  • Environmental Trusts Act (Ontario) and Section 70 of Income Tax Act allow trusts for environmental purposes.
  • Provincial laws on burial and green cemeteries vary; only some provinces regulate natural burials.

8. What’s New in 2025?

  • The cancelled capital gains inclusion hike ensures long-run stability for gifting securities .
  • The Canada Green Building Strategy, updated in July 2024, may encourage eco-gifts related to retrofits or community infrastructure.
  • BC’s electronic wills legislation (effective December 2021) allows digital estate documents--making it easier to update green estate provisions virtually .

9. Examples of Bequest Language

  • Residual Gift
“I give xx% of the residue of my estate to the Parks Canada Foundation (Charitable Reg. #…) to support habitat restoration.”
  • Testamentary Conservation Trust
“I direct my executors to establish the ‘Green Trails Trust’, to maintain the forested section of my property and fund school tours, with annual accounting to the (Designated Charity).”

10. Caveats and Best Practices

  • Consult legal counsel--especially when dealing with covenants or trusts.
  • Define roles clearly: trustees must understand their obligations.
  • Revisit regularly: laws (and landscapes) change.
  • Inform heirs and trustees: transparency avoids conflict.
  • Consider family and ecological impact equally.

11. Why Now?

On the radar of many people are climate change, biodiversity loss and environmental injustice. A green estate enables people to do more than just live their lives; it also allows them to create enduring legacies.

At Forum Estates LLP, our clients have planted forests, invested in research on renewable energy, saved farmland and rescued wildlife, and all those achievements have been made with clever planning and integration of assets and ethics. 

12. Final Thoughts

Green estates are no mere legal device, but a declaration of principles. They make sure that the generosity we display in this life goes on forever.

If protecting habitat, healing the planet, or educating the next generation aligns with your soul, consider making it part of your estate plan. We at Forum Estates LLP will help you build a legacy rooted in respect…for both people and the earth.

Visit forumestates.ca to begin crafting your green legacy roadmap. 

Disclaimer: This article is for informational purposes only. Consult a qualified legal and tax professional before implementing any estate plan.