Estate Planning

Estate Planning means thinking about the future and developing a program to create, preserve, and transfer assets. Estate Planning is about life now and in the future for your family and loved ones.

No Estate Plan will be exactly like another; your plan should be a reflection of your personal priorities and choices.

What is an Estate?
An estate includes all of the assets and debts that you acquire during your lifetime.
Assets can consist of the following:

    A principal residence
    Non-registered investments, such as stocks and bonds, cash in a bank account, any registered investments (e.g. RRSP’s RRIF’s pension)
    A second residence, such as a family cottage or condominium
    Shares of a private business

Debts can consist of the following:

    Outstanding credit card debt
    Mortgage Debt
    Line of Credit
    Final taxes/expenses of the estate, such as legal fees, probate fees, and funeral expenses

In the absence of proper planning, debts and taxes can have a negative impact on the ultimate value of your estate.

What Is An Estate Plan?
A Proper Estate Plan is a document created with the help of your financial, legal and tax advisors. An estate plan outlines:

    Your personal and financial objectives
    Asset accumulation plan
    Tax minimization strategies
    Cash flow management, both during the asset accumulation and withdrawal stages

Prepared properly, a good Estate Plan allows you to “see” into the future and envision your estate and its ultimate distribution.

A Comprehensive Estate Plan will include:

    An up-to-date will
    A power of attorney for property
    A power of attorney for personal care

Creating Your Estate
The first step in Estate Planning is to determine whether or not you want to leave an estate to your heirs. If the answer is yes, the next step is to determine how much you plan to leave and what the estate will look like. The third step is to factor in taxes and fees to arrive at your Net Estate.

Your Estate Plan needs to be flexible in order to respond to changes that you and your family will inevitably experience as you go through life.

Moreover, you need to determine who your heirs should be and what they should receive. For example, you may want to leave cash to some of your heirs, and investments, property or shares in a private business to others. Some heirs could receive a lump sum of capital, while others receive a regular monthly income. Many Canadians donate to charities through their estate to provide bequests and take advantage of tax planning opportunities.