Advisors Report

I’ve been told there are two things in life that one cannot avoid: taxes and death.  Although not everyone’s two favourite topics, there are steps one can take to make a difficult time a little less strenuous, and one of those steps is a properly administered estate plan.

Estate Planning is a comprehensive process put in place to ensure your loved ones are well cared for after your death.  This includes creation of a will, the transfer of assets to your intended beneficiaries and minimizing taxes.

The actions you take now can ensure a smooth transition.  The concept of estate planning is not just for the wealthy, as everyone can benefit from a well thought out plan.  Some important things to consider are the structuring of asset ownership and the decreasing of probate fees, as well as legacy and charitable donation wishes.

A will is a legal document completed to communicate the deceased wishes relative to the distribution of the estate.  Legal guardians for children are also appointed as well as instructions for your own personal care should you become unable to care for yourself.  When creating a will, be sure you understand the three types of Power of Attorney.  There is the basic Power of Attorney, Power of Attorney for property and Power of Attorney for personal care.  All are very important and cover different aspects of life.   An executor should be named as well to ensure a person you trust is responsible for the distribution of the estate.

Some people may not realize that creditors and taxes must be paid before any beneficiaries can receive distributions.  This can be an issue if there is a lot of debt or probate fees to pay.  A good way to avoid problems is threw a life insurance policy with named beneficiaries.  Creditors have no right to the assets and they pass to your loved ones tax and probate free.  Also careful planning should be in place to ensure any money that can roll over to a spouse does, as it avoids the fees and can save you considerable amounts of tax money.

As you can see, estate planning is a complicated matter but leaving these issues unattended can make life far more complicated.  The best defence is a good offence, and I believe this holds true with estate planning. A little thinking now can go along way in the future for both you and your loved ones.

Adam Myers

Independent Planning Group

202-223 Colonnade Road South

Ottawa Ontario, K2E 7K3

Phone: (613) 224-5511 x 108

Email: adam@pfip.ca