Estate planning is the process of making arrangements for the management and distribution of your assets after your death and arranging for someone to make decisions for you and your assets if you are unable to do that yourself. It is a comprehensive approach that takes into account your financial, legal, and personal needs.
Estate planning is important because it can help you to:
- Ensure that your assets are distributed to your loved ones in accordance with your wishes. If you die without a will, your assets will be distributed according to the intestacy laws of your province. This may not be in accordance with your wishes, especially if you have a blended family or complex financial arrangements.
- Minimize estate administration taxes (probate fees) and probate costs. Estate administration taxes (probate fees) are payable on the fair market value of your assets at the time of your death. Different provinces have different ways of calculating how much this will be. Probate is the legal process of approving the parties who will administer your estate, validating your will, and approving the distribution of your assets to your beneficiaries in accordance with your will. Estate planning can help you to reduce taxes and probate costs.
- Protect your assets from creditors and lawsuits. If you have any creditors or lawsuits pending against you, estate planning can help to protect your assets from being seized after your death.
- Provide for the care of your minor children or dependents with disabilities. If you have minor children or dependents with disabilities, estate planning can help to ensure that they are financially secure after your death.
- Plan for your own end-of-life care and funeral arrangements. Estate planning can help you to make decisions and advise others about your own end-of-life care and funeral wishes and arrangements. This can give you peace of mind and help to reduce the burden on your loved ones.
Estate planning is an important process for everyone, regardless of their age, wealth, or marital status. It can help you to ensure that your assets are distributed to your loved ones in accordance with your wishes, minimize estate administration taxes and probate costs, protect your assets from creditors and lawsuits, and provide for the care of your minor children or dependents with disabilities.
If you do not have an estate plan, or if your estate plan is outdated, you should consult with an experienced estate planning lawyer to get started.
This article is for informational purposes only and is not legal advice. Contact us today to discuss your specific situation.