An estate plan outlines how you want your property and assets to be dealt with following your death. It’s a legally binding document that spells out your plan and how you wish for your entire estate to be distributed. In fact, it’s one of the most important documents that everyone should have, but not everyone does. There’s a common misconception that only affluent people should have an estate plan, but this is far from true. The reality is everyone needs an estate plan to ensure that their properties, investments, and assets are distributed exactly as wish when they pass on. If you’re still unsure about whether you need one, here are just a few of the reasons why a detailed plan for your estate is important.
It’s Your Legacy
All the money you’ve earned, the assets you hold, businesses you own, and investments you’ve made are your legacy. It’s what’s valuable to you and your family, and it’s worth protecting. Unfortunately, not everyone knows that if you don’t have a clear plan in place, your estate may not be distributed in the way you’ve planned, and can it also be eaten away by taxation. So do yourself and your beneficiaries a favour and get an estate plan in place to ensure that your legacy lives on.
Protects Your Family’s Future
A well thought out estate plan can provide the proper support and financial stability for your family after you pass. Without a detailed plan in place, your wishes may not be carried out as you intended. Instead, the government may get to decide where your money goes.
Spells Out What Will Happen To Your Own Care
If you become incapacitated and can’t express your wishes, your family will be left to make some hard decisions on your behalf regarding your health. No one wants to put this kind of stress and agony on their kin. And in many cases, long-term care can have a major impact on a family’s financial future. Fortunately, a comprehensive estate plan will give clear directions on how your medical care should be handled when you can no longer make the decision for yourself.
Distributes Your Personal Property As You Intend
There will likely be a number of personal items and assets that you will leave behind. To ensure these are distributed to your beneficiaries as intended, you need an estate plan to clearly outline who will receive what and when. Without this stipulated in a legal document, items may be dispersed to the wrong people, like an ex-spouse or estranged sibling.
Reduces Probate Fees and Taxes
Although there is not an estate tax in Canada, there are other fees that exist after death. Your estate plan can also be set up to help reduce the probate fees and taxes associated with your will after your death. Because each province has different rules and fees, it’s important to consult with an expert who can walk you through the entire process. No matter how old you are, how much money you have, or whether you’re married or single – you and your family can benefit greatly from having an estate plan in place. When you’re ready to get started, contact us at the Beacon Group of Assante Wealth Management. We’ll get you set up with a plan to ensure your legacy and family are protected after you pass.