So, it must come as a shock to the families of all the Canadians who die every year without a will when the province takes control of the estate to decide how the assets are to be distributed.
Even for smaller estates, the costs and delays of not being organized and having the proper documents in place can add delay, additional costs and additional grief to family and intended beneficiaries. The goal of estate planning is to arrange your financial affairs in a way so that your assets can be passed to heirs as quickly and as tax efficiently as possible. In the same way that a financial plan helps you map out your financial future, an estate plan will help ensure that your final wishes and objectives are carried out.
Carefully planned estates have assets arranged and titled in such a way as to ensure distributions can be made efficiently as intended and taxes can be minimized.
Estate planning is not just planning for death; it is also essential to ensure that your affairs are handled in accordance with your wishes while you are alive. Should you become mentally or physically incapacitated and unable to manage your own affairs, tools such as a power of attorney become important life planning tools.
Many people avoid estate planning because they think it is complicated and expensive, which, for most estates, is not true.
While it usually requires the guidance and assistance of an estate planning professional or lawyer to execute the legal documents, a lot of time and expense can be saved by organizing your financial information and determining your goals and objectives prior to meeting with one. At the very least, everyone should have a simple will, which for the amount of distress and costs it can prevent, is a good investment! Larger estates may require additional layers of estate planning tools, such as trusts. Still the more preparation done in advance, the easier and less expensive the process will be.
As a CPA, Certified Financial Planner and a Certified Executor Advisor, I offer assistance in creating an estate or legacy plan that includes help in organizing key documents to help reduce delay and additional grief down the road. Being organized with your paperwork and ensuring that you have filled all the gaps in your estate plan could be your last and best gift to your family and beneficiaries. I can also provide referrals (without charge) for more in depth matters and for the execution of legal documentation or executor support.
Finally, as a leading expert on the approximate $8 Billion+ problem of Unclaimed Financial Property that exists in Canada, I have been acutely concerned for several years about the growing balance of financial assets that become lost and unclaimed. I am an active advocate for Unclaimed Property legislation in Canada that is long-overdue. Whereas the United States has had unclaimed property legislation in place for more than 50 years as an important aspect of consumer protection, in Canada, only Quebec, Alberta (and recently) New Brunswick have such legislation in place. Ultimately, the key to safeguarding hard earned financial assets from becoming unclaimed is by ensuring important information is properly organized and accessible to your family and executor.
