Preparing an estate plan is the best way to ensure your assets are distributed according to your wishes. An estate plan is an essential part of your financial strategy. More than just a will, it’s a set of instructions designed to tax-efficiently transfer your wealth to your family and other beneficiaries.
Communicating your wishes formally and legally can protect your assets from any future legal challenges. In the here and now, an estate plan provides peace of mind. Here are a few tips to get started:
Review Your Assets
Make an inventory of everything you own, including home and vacation properties, valuables, possessions, vehicles as well as registered and non-registered investments. Include a valuation of any businesses you might own. Then list your debts, such as mortgages, loans, lines of credit and credit card balances. This will provide a balance sheet showing your net worth.
Assemble a Team
To ensure your wealth transfer is managed properly, you'll need the advice of professionals you trust. Your financial advisor, lawyer and accountant or tax planner will form the backbone of your estate planning team. Your financial advisor should be able to help align everyone and bring in any specialists as needed, such as an insurance advisor.
There are many advantages to working with a team of professionals. As opposed to one person handling everything, each participant brings specific knowledge and expertise to the table. The synergy among team members will provide you with a superior estate plan which in turn may save your family money over time, as well as reduce stress.
Name an Executor
Your executor (known as a liquidator in Quebec) has the legal authority to represent your estate while carrying out your wishes and acting on the contents of your will. You can either choose a qualified family member or friend to act as executor or you can appoint a trust company to execute your estate plan. Of course, a trust company will charge a fee but it may be worth it if you can’t find a qualified individual to do this important job.
Our Consultants can help you put together a comprehensive estate plan and assist you in discussions with your family, perhaps through a family meeting which the Consultant can lead. With everything out in the open and on the table, things will be easier for your estate planning team, especially your executor. And you’ll be happy that your legacy will be exactly as you planned.
Dwayne Rettinger, Investors Group Financial Services Inc.
This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Dwayne Rettinger is solely responsible for its content. For more information on this topic or any other financial matter, please contact an IG Wealth Management Consultant.
