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Estate planning helps you manage and protect your assets while you’re alive and
ensures that your assets are distributed according to your wishes after you’re
dead. Like your financial plan and your
budget, your estate planning needs will change, depending on your stage of
life.
Here are some tools that will help you achieve your estate planning goals.
Review and update them regularly to ensure that the information is current and
relevant to your personal situation. Organize
your legal and personal documents and keep them in a safe, fireproof place,
like a safety deposit box. Let a family member or trusted friend know where you
store your important documents, so they can be located quickly in an emergency.
Legal
Wills
A will is a legal document that outlines how you would like your money, property
and possessions distributed after your death. Everyone should have a legally
valid and up-to-date will, even if their personal estate is quite small. Yet
many people don’t prepare one and die 'in testate' (a term that means dying
without leaving a valid will).
| • | Having a will is important because it
allows you to distribute your estate the way you want to after your death.
If you have under-age children, it allows you to appoint a legal guardian to
look after them and manage their assets. It also allows you to appoint an
executor to act as your legal representative and settle your estate. A
well-planned will can help you minimize estate taxes and other costs.
| | • | If you die without a will, the
government has established legal guidelines that determine how your estate
will be distributed. However, these guidelines may not distribute your
assets the way you would have wanted and may result in higher taxes on your
estate.
| | • | To find out more about preparing a
will, make an appointment with your lawyer or visit the
Ontario Ministry of the Attorney General's website.
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Power of attorney
A power of attorney is a legal document that permits you to give someone else
the authority to act on your behalf. There are different powers of attorney for
different purposes. A power of attorney can be set up to give your appointed
representative the authority to make decisions about your personal care and/or
to manage your personal and legal affairs, such as paying your bills and
handling your banking and real estate transactions. A power of attorney is a
volunteer document and you cannot be forced to make one.
| • | A power of attorney is very useful
when dealing with family members who are incapacitated by age or illness.
Incapacity can strike anyone, at any time, so it’s important to protect your
estate by appointing someone to make decisions on your behalf.
| | • | You’ll find an electronic version of a
power of attorney kit on the
Ontario Ministry of the Attorney General’s website.
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Insurance
| • | At every stage of life, you need some
form of insurance to protect you, your family and your personal property. As
your personal situation changes, so do your insurance needs.
| | • | It's important to periodically review
your personal and financial goals to ensure that your insurance coverage
matches your needs.
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