You’ve worked hard for everything you have, but without careful planning your estate might be subject to excess tax, be held up in litigation, or even worse how your assets are distributed might be decided for you instead of by you. While these are not pleasant things to think about, not unlike your plan for retirement you also need an estate plan. Estate planning takes all of the following into consideration:
- The assets and investments you own;
- The people you want to receive your assets;
- The person you want to administer your estate (the executor);
- The needs of your surviving family;
- The expenses your estate will incur; and
- The impact of taxation on your estate
Most people spend more time planning a two-week holiday than the rest of their financial lives. A lack of proper financial planning could result in your paying more income tax and passing on less to your heirs. It doesn’t have to be this way. By working with us, we will help you to develop a plan that is unique to your situation. We can help you to manage your wealth now, have enough money to retire and provide for others when you are gone.
There are six steps in our Estate Planning process:
- Evaluate your current financial situation: What sources of cash and income will your family have when you die? Does your family depend upon your income? What assets and investments do you own?
- Determine your estate goals:
- Who do you want to be the beneficiaries of your estate?
- Who do you want as an executor?
- What assets do you want to pass to your beneficiaries?
- What expenses will your estate have to pay?
- What debts will your estate have to pay?
- What income do you want to leave for your family?
- What taxes will your estate owe?
- Identify any financial barriers to your estate goals: You know what your goals are. Do your assets and investments provide enough money to accomplish them? Do you have a will in place to ensure the smooth distribution of your estate?
- Recommendations and Plan: We will provide you with a written recommendation that will help you align your estate funding with your estate needs. This will include specific recommendations around will planning, investment planning, retirement planning, and life insurance needs.
- Implementation: The best time to set your plan into action is right now. It’s never too early, and certainly never too late to begin. A plan that sits on the shelf won’t accomplish anything
- Ongoing Review: It’s vital that we meet with you to regularly review your estate plans. As things change, we can work together to make the necessary adjustments.
Some additional key questions include:
- Do I really need a will? Yes. Everyone who has assets or earns an income should have a will. If you die without a will, provincial law decides how your estate should be distributed – and that may be very different from what you want. We can help you plan your will so that you will be prepared when you meet with your lawyer. If you do not have a lawyer, Scott Reeves can recommend a number of qualified professionals.
- What else should I consider? Some legislation impacts the distribution of estates when there is a surviving spouse or when you have a partner of the same sex. We will help you understand the legislation impacting your personal situation and use this in the design of your personal estate plans.
- Do I need life insurance? Life insurance is a common component of many estate plans. We have designed a process which helps you determine the amount of life insurance you need, if any, based on your specific goals. You can then explore the various types of life insurance and design a program that suits your needs – and your pocketbook.
Estate planning is not a one size fits all exercise. Our advisors will take the time to conduct comprehensive estate planning discussions to understand how much, if any estate you will be leaving. From there, we can work with you, and other strategic partners such as an accountant or solicitor to minimize the effect of taxes and maximize the size of your Estate.
