Estate planning

Believe it or not, you have an estate. In fact, nearly everyone does. Your estate is comprised of everything you own— your car, home, other real estate, cheque and savings accounts, investments, life insurance, furniture and personal possessions. No matter how large or how modest, everyone has an estate and something in common—you can’t take it with you when you die.

Estate planning is not just for “the wealthy,” although people who have built some wealth do often think more about how to preserve it.
Good estate planning often means more to families with modest assets, because they can't afford to lose anything.
Estate planning includes:
  • Instructions for passing your valuables and assets.
  • Instructions for your care if you become disabled.
  • Name a guardian and an inheritance manager for minor children.
  • Provision for family members with special needs.
  • Provision for loved ones who might be irresponsible with money or who may need future protection from creditors or divorce.
  • Life insurance to provide for your family at your death, lump sum disability insurance, income protectors and lifestyle protection to replace your income if you cannot work due to illness or injury.
  • Provision for the transfer of your business or assets at your retirement, disability, or death.
  • Minimisation of taxes, court costs, and unnecessary legal fees.
  • An ongoing process, not a one-time event. Your plan should be reviewed and updated as your family and financial situations (and laws) change over your lifetime.

What will it cost?
If you don’t think you can afford an estate plan now, start with what you can afford. For a young family or single adult, that may mean a will, life insurance, and powers of attorney for your assets and health care decisions. Then, let your planning develop and expand as your needs change and your financial situation improves. Don’t try to do this yourself to save money, because an experienced financial adviser will be able to provide critical guidance and peace of mind that your documents are prepared properly.

Biggest Mistakes
  • "Do-it-yourself" will or trust - some lawyer will get paid lots of money to deal with the problems after death of the person involved.
  • Failing to write a will - the government will decide who receives your assets.
  • Failure to coordinate beneficiary designations with your will.
  • Outright bequests to immature children or minors.
  • Trusting heirs or beneficiaries to do "the right thing" with an inheritance.