Planning Your Estate Now, One Of The Smartest Moves You Can Make
You probably know the old saying: nothing in this life is certain except for death and taxes. And when someone dies, they often leave behind quite a bit: grieving loved ones, fond memories, and a lot of loose ends. An estate executor is usually in charge of dealing with those loose ends: settling any outstanding debt, submitting tax returns, and ensuring that the deceased’s belongings go to the appropriate beneficiaries. If an estate isn’t taken care of before the estate holder passes, the executor and any remaining loved ones may suddenly be left to deal with the harsh realities of settling a disorganized estate in the midst of this loss.
Perhaps you and your loved one have already had an extensive talk about your role as an executor to their estate once they pass. Or perhaps you’re the one currently wondering how best to settle your affairs for the future. Either way, you’re not alone. ClearEstate is a dedicated, professional partner who’ll be by your side at every step of the estate planning and settlement process. Think of us as a one-stop shop for all of your estate settlement needs, questions, and solutions.
What no one tells you about settling an estate
Being named an estate executor can often feel like you’ve been dropped off in the middle of a jungle with no instructions on how to find your way out. But it really doesn’t have to be that way.
Here are some often-overlooked realities of being an executor:
Costs
The average cost of settling an estate is about 5% of the estate’s value. If you start counting in lawyers, accountants, and court fees, it can add up pretty quickly. That’s why we only get expensive professionals involved when absolutely necessary so that beneficiaries don’t see a huge chunk of their inheritance swallowed up in fees.
Time and energy
Imagine finding that one document, filling it out properly, submitting it to the right authorities and realizing there’s a new version of it. Now imagine doing that ten or twenty more times. Having a dedicated partner like ClearEstate who’ll take care of the exhausting paperwork for you can drastically reduce the weight.
Settling an estate also takes anywhere from 6 months to over a year (or even more for complex estates) for beneficiaries to start receiving their inheritance.
Dealing with potentially difficult beneficiaries
One of the big responsibilities of executors is to keep all beneficiaries in the loop and oversee the distribution of assets to the relevant parties. What many executors don’t consider is that grieving and unresolved family issues can create a cauldron of bubbling resentment and frustration which can lead to a lot of trouble: wills can suddenly become contested, the beneficiaries can begin mistrusting you, and costly legal battles can arise. One of the best ways to avoid this? Creating full transparency for all beneficiaries involved. Our beneficiary portal can ensure that all beneficiaries are able to view the progress of the settlement, receive a summary of what assets they’re entitled to, and keep detailed records of all communications.
While settling an estate is a tough process, it’s very necessary. Without an appointed estate executor, your loved one’s estate can get tied up in nebulous, long-winded court proceedings.
The importance of planning ahead
People who want to save their loved ones and their estate executor a lot of time, stress, and energy often take it upon themselves to plan their estate so that by the time they’re gone, the estate settlement process is as quick and painless as possible.
One of the most important parts of estate planning? Making sure there’s a will. A study from 2018 states that over 50% of Canadians don’t have a will. If your loved ones are left trying to settle your estate without your will, they’re going to have quite an unpleasant time. From preparing an inventory of all of your relevant assets, naming beneficiaries on retirement accounts, and creating joint accounts with a spouse, there are many steps you can take right now to make your loved ones’ lives easier once the time comes to settle your estate.
Confused about where to start? ClearEstate also works with you to create a comprehensive estate plan that’ll cut down on costs, minimize the time your estate executor will spend in probate court, and ensure your beneficiaries get the inheritance you’ve planned for them.