Estate planning strategies – protecting your legacy
:hen your time comes ± and may it be many years from now ± you will want your legacy to be passed on e[actly as you wish. <ou will want to ensure your family is protected and the least possible ta[es are levied against your estate. 7hat’s why estate planning is so important and why you should do it now using strategies liNe these.
$ :LOO is the foundation of any estate plan. ,t designates how your estate should be distributed. ,f you die without a will i.e. intestate provincial legislation will determine how your estate is distributed amongst your heirs.
$ /LYLQJ :LOO provides direction for your care in the event of catastrophic illness or disability.
$Q (QGXULQJ 3RZHU RI $WWRUQH\ also called a 0andate in case of ,ncapacity in 4upbec provides direction for how your property will be managed in the event of incapacity.
$Q ([HFXWRU sometimes called a 3ersonal 5epresentative or in 4upbec a liTuidator is the person named in your will to settle your estate according to your documented wishes.
$ *XDUGLDQ should be named in your will to taNe care of your children while they are minors.
/LTXLG $VVHWV are important to pay for ta[es debts the costs of settling your estate and or other obligations. ,f you do not anticipate that your estate will have sufficient liTuid assets consideration should be given to purchasing insurance.
)XQHUDO 6HUYLFHV can be prearranged to save your estate some money avoid e[tra stress on your survivors and ensure the service is according to your wishes.
)LQDQFLDO $VVHWV should be comprehensively listed in your records -- and be sure your ([ecutor and or survivors Nnow where to find them.
3UREDWH is the process by which your will is validated by a court with fees paid to your provincial government usually calculated on the net fair marNet value of the assets in your estate. $lthough reducing probate fees may be desirable avoiding probate through the use of strategies such as beneficiary designations and Moint ownership can lead to problems if some beneficiaries receive more of the estate than others.
7hese comments are based on the probate process outside of 4upbec since the probate process is different in that province.
$ 7UXVW specifies a trustee who will manage the assets so long as the assets are held by the trust. $lthough it is possible to set up a trust during your lifetime most people set up trusts in their will. $ trust set up in your will is Nnown as a testamentary trust and it can serve several purposes including maintaining control over the assets until certain beneficiaries are mature enough to manage them and providing certain ta[ and government support advantages to disabled beneficiaries.
<our personal estate planning strategies depend on your financial situation and the rules in your province. <our professional advisor and lawyer can help ensure your legacy is left as you wish while limiting probate costs and ta[es.
This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant.