What you should know about Estate Planning.
Prince, a highly successful artist who passed away without a will, left behind an estate worth $156 million.
His six heirs faced challenges in dividing the estate, leading to a legal battle lasting over six years and incurring millions in legal fees.
This case highlights the importance of planning ahead with a will, power of attorney, and financial strategy to protect loved ones and preserve one's legacy amidst the emotional turmoil of loss.
Let's learn from this and prioritize estate planning for a smoother transition and peace of mind.
Estate planning is not just for the extremely talented or wealthy.
A will is a ‘must’ no matter what stage of life you find yourself. For retirees, the need for a well written will only becomes more imperative.
💻 With the arrival of DIY estate planning tools, like Willful, LegalWills Canada, or ClearEstate—getting one has never been cheaper nor easier for simple households.
🏡 If you have a property, business or a trust ; a will from drafted by an estate lawyer (or notary in Quebec) may be more appropriate.
💲 Wills can be written in a way that can incorporate tax planning strategies to minimize taxation at death.
😱 The absence of a will can lead to conflict among surviving family members.
These outcomes could be perceived as unfair by a family member and could lead to legal proceedings where a judge may rule in a way that it is equitable but not fair.
♿ A will can also be a way to protect your disabled heirs, minimize their taxation and maximize their social assistance benefits during the course of their life. Make sure you arrange a Qualified Disability Trust and a Henson Trust. — these can be written into your Will & Testament.
But remember : wills only work when YOU are dead, but NOT when you’re incapacitated.
Powers of Attorney (or a Mandate in Quebec) can help you carry out your wishes while you may be incapacitated but still alive. A POA can give someone the power to act on behalf of an incapacitated client.
A POA can be written a way that limits actions to the sale of a property or banking transactions. They can also be written in a way that grants broad powers.
In the event someone did NOT have a POA during a time of incapacitation, this can lead to even more problems where distraught loved ones may find themselves in a bureaucratic and legal quagmire.
This means that bills and other obligations could go unpaid and key medical decisions could be disputed among family members.
🚜 FUN FACT: A man in Saskatchewan scratched his dying wishes onto a tractor with a pocket knife. This was determined to be a valid holographic will.
Although financial advisors usually are unable to write a will or power of attorney, we can help you navigate the process and also ensure that your existing documents reflect your current financial and familial situation.
