Making sure that your assets are handled how you wish and that your loved ones are taken care of after your passing will give you peace of mind. Less than 50% of Canadians have wills, and even fewer have created estate plans. A will is only one part of estate planning strategies that help you reduce the financial burden and stress that comes during the challenging time of a loved one passing. An experienced Wills & Estates lawyer will help you prepare your estate plan, including creating your will and other estate planning strategies. Each estate plan is different depending on your goals; however, as wills and estate lawyers, we have compiled the steps involved in estate planning strategies to help you prepare.
1. Take Inventory of Your Possessions
Before you can begin defining estate planning strategies, you need to consider your current situation and goals. There are a few common estate planning goals that clients bring, such as avoiding probate taxes where they can and leaving assets to family. These are great goals, but we encourage you to consider your current situation to develop your personalized goals for your estate planning strategies. Taking inventory of your current situation allows you to make comprehensive decisions about the management of your estate and distribution of your assets.
Things to consider when taking inventory of your possessions:
- Real Estate
- Primary residence
- Vacation properties
- Land
- Rental Properties
- Financial Accounts
- Investments & Retirement Accounts
- Life Insurance Policies
- Personal Property
- Jewellery
- Vehicles
- Collectibles
- High-value items
- Debts & Liabilities
- Businesses or business interests
Taking inventory of your possessions and assets not only allows you to make decisions about management and distribution, but it also creates a clear roadmap for your executor and beneficiaries. This makes the estate administration process smoother and helps ensure your wishes are accurately followed.
2. Consult A Wills & Estate Lawyer
Once you have a thorough understanding of your current situation, it is important to consult with an experienced Wills & Estate Lawyer, who can help you with your estate planning strategies by navigating the complex laws, taxes and helping to create relevant goals for your estate plan. We can help you understand how the Succession Law Reform Act 1990 impacts your estate, draft binding legal documents and grant Powers of Attorney.
Contact Epstein & Associates for a Free Consultation.
3. Define Your Estate Planning Goals
There is no right or wrong way to set goals for your estate; however, understanding some common estate planning goals of others can be helpful during your estate planning process. These are some of the common goals we see in estate planning strategies:
- Avoid Probate
- Probate is the legal process through which a deceased person’s will is validated, and their estate is administered and distributed under court supervision. While probate ensures the orderly distribution of assets according to the deceased’s wishes, it can be a long, expensive and complex process. Having a proper estate plan will help your loved ones avoid probate, or at least reduce the costs in dealing with the process.
- Asset Distribution
- Most estate planning strategies include ensuring assets are distributed to beneficiaries based on the individual’s wishes after death. This involves identifying who will inherit specific assets, from real estate to personal belongings, and making provisions for their distribution.
- Provide For Loved Ones
- Estate planning also allows individuals to consider how they can provide for their loved ones after they are gone. This can include setting aside funds to support a surviving spouse, cover children’s education costs, or ensure that any dependents with special needs are cared for, maybe with a Henson Trust.
4. Decide On Representatives
The types of representatives that may be involved in your estate depend on your needs; however, they can include an executor, beneficiaries, guardians and power of attorney. Each representative has an important role in your estate plan.
Executor
Your executor is responsible for administering your estate according to your will, managing assets, paying off debts, and distributing what remains to your beneficiaries. You can ask a family member, friend or even hire a professional to be an executor of your estate.
Beneficiary
Beneficiaries are those who will receive your assets upon your death. This can include family members, friends, or organizations like charities. Your beneficiaries will be a personal choice and may change over time.
Guardian
Guardians are a consideration if you have minor children or dependents. This is also a personal decision that may change over time.
Power of Attorney
A POA allows someone to make decisions on your behalf if you’re unable to do so, covering both healthcare decisions (personal care POA) and financial matters (property POA). A lawyer can help you set up a POA.
Contact Epstein and Associates for help setting up your Power of Attorney.
5. Draft Your Will
A will is a fundamental component of any estate plan. It dictates how your assets should be distributed upon your death. Trusts can be another valuable tool in your estate planning by offering additional control over how and when your assets are passed on. dictating how your assets should be distributed. Before drafting a Will or creating a Trust, it is important to speak to a Wills & Estates lawyer to understand which options are beneficial for your estate goals.
Related article: Who Inherits Assets When There is No Will in Ontario? – Epstein & Associates
6. Plan For Taxes And Debts
Considering your debts and the estate taxes that need to be paid upon your death are important considerations for your loved ones. In Ontario, every estate is subject to the Estate Administration Tax. Planning ahead for these payments and any debts that may remain will allow your loved ones to grieve in peace without financial worries.
7. Update Your Estate Plan Regularly
It is always great to be prepared early and have all of your affairs in order. However, over the years your circumstances and your decisions may change. That is why it is so important to continually revisit your estate plan and update it to reflect your current situation. Having a trusted lawyer that you can work with over the years will make this process easy for you and your loved ones.
Contact us for your Free Consultation with the Wills & Estate experts at Epstein and Associates.