2/16/2024 0 Comments Will and estate planning checklist![]() ![]() While a living will establishes specific directions for your care when you’re no longer able to express them, a POA for personal care gives someone else the authority to make healthcare and personal care decisions on your behalf when you’re no longer able to. While it’s easy to confuse a living will with a POA for personal care, there is a key difference. Your loved ones will need to show your will to the probate court in order to be able to execute your wishes and receive the inheritance you’ve determined for them.Ī living will is also known as a personal directive, and this is a legal document that outlines your instructions for your healthcare and personal care in the case that you’re incapacitated and can no longer advocate for yourself. Here are some of the documents that form part of any solid estate plan:Īs mentioned above, a valid will is the cornerstone of any good estate plan. It’s always important to keep informed about the inheritance and estate laws of the country where your property is located, and plan accordingly.Įstate planning requires you to have a lot of important documents that are kept in a safe space, and are accessible to your loved ones when they need them. So if you own a house in the United States, then that property may be subject to U.S. The property you own outside of the country is subject to the jurisdiction of the country where the property is located. If you have assets outside of Canada, an estate plan that covers these assets is particularly important since out-of-country property can complicate probate proceedings. This way, less of your loved ones’ inheritance is lost to fees and taxes. Since the money in the policy goes straight to a named beneficiary, it’s not considered part of the estate and can be used to pay off the taxes your estate would have to pay if it earned capital gains, for example. This means that your loved ones will receive immediate financial assistance after you’re gone, without having to go through probate to access the funds.įurthermore, the funds from a life insurance policy can be used to offset any taxes or debts your estate may have once you’re gone. If you have a life insurance policy in place, not only will the funds in that policy go to your named beneficiaries after you pass, but those funds will also be tax-free. The general rule of thumb is to look for a policy that covers about 80% of your annual income, projected for the next ten to twenty years. Setting up a life insurance policy is another tool in your arsenal toward creating a comprehensive estate plan. ![]() You can read more about creating a valid will in Ontario here. Your will should also include your funeral plans and any other plans you want to be carried out in your name, such as donations to charity or pet care for any pets that may outlive you. Your will should cover all of your assets and, if possible, assign beneficiaries to them. They won’t have to pay for the service at potentially inflated prices, and won’t have the added stress of organizing everything since it’s already been sorted in advance. Furthermore, prepaying for a service with a specific funeral home takes a huge load off of your loved ones’ shoulders once you’re gone. However, savvy planners go one step further and already make pre-arrangements with the funeral home of their choice, ensuring that they’re locking in today’s prices and get exactly the kind of service they envisioned. If you have specific wishes for how you’d like your funeral service to be conducted and how you’d like your body to be put to rest, then it’s important to have those plans in writing in your will. When you’re gone, that money will come out of your estate your beneficiaries will only be entitles to whatever’s left. Mortgages, credit card debt, and student loans are all going to have to be paid off sooner or later. While creating this inventory, it’s also important to keep an eye on any ongoing debt you might be accumulating. Valuables, such as jewelry, antiques, and rare collectibles Retirement accounts, such as pensions, TFSAs, and RRSPs Vehicles, such as cars, motorcycles, or boats įinancial accounts, such as chequing, savings, and non-registered investment accounts Personal property, such as clothes, books, family heirlooms, and furniture This means that your first step will consist of creating an inventory (and an approximate value appraisal) of all of your assets. You can’t create a solid estate plan without knowing how big your estate is. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |