WHERE THERE’S A WILL…
…there’s a way. This adage may not be completely successful in British Columbia. Don’t get me wrong — having a will is extremely important and, in all cases, necessary. Estate planning is also critical in ensuring that your wishes are carried out.
There are many ways to distribute your assets after your passing, and good estate planning will include the following:
• Instructions infused with your values, such as philanthropy, religion, education, and work ethic
• Instructions for your care if you become disabled before you pass away
• Naming a guardian and a trustee for minor children
• Providing for family members with special needs without disrupting government benefits
• Providing for loved ones who might be irresponsible with money or who may need future protection from creditors or divorce
• Life insurance to provide for your family at your death, disability income insurance to replace your income if you cannot work due to illness or injury, and long-term care insurance to help pay for your care in case of an extended illness or injury
• Minimization of taxes, court costs, and unnecessary legal fees by taking advantage of beneficiary designations on registered assets or designated funds
• Regular updates as major life events occur or laws change
Your personal financial and family situation will determine the extent of the planning required. And it is imperative that you fully disclose all of your assets and details of your family to your professional advisor. There are many pitfalls in the legal landscape of British Columbia.
For example, in B.C., the Wills Variation Act permits a spouse or a child to make a claim against your estate if they have been excluded from, or not adequately provided for, in your will. Any gifts made to charities in your will can be particularly vulnerable to this variation.
In my work, I see many families and charities being dragged into expensive legal proceedings. In the end, sometimes after years of struggle, the estate is severely diminished and no one is happy. Many of these situations could have been avoided with expert estate planning. An upfront investment in legal and financial planning will pay dividends by preserving your intentions down the road.