A key aspect of estate planning is the creation of an integrated financial plan that manages the benefits available to you and your heirs, and minimizes the amount of tax payable both during your lifetime and at death.  The goal of an estate plan is to have more money available to yourself and your survivors and less available to the government and outsiders.

The simplest form of estate planning is a Will.  An individual traditionally uses a will to control the distribution of the assets that he or she owned at the time of death.

The individual’s will effectively does two things:

• It appoints a personal representative to oversee the administration of your assets after your death
• The will directs your personal representative as to how your assets are to be handled, including specific requests.

The process of probating a will proves the validity of the will and allows prior versions to be ignored.  A probated will is often required by a third party, (e.g. bank or land titles office) as evidence that the personal representative has the authority to deal with the assets of the deceased.

To avoid probate fees and the disclosure of private information, many individuals seek strategies that allow assets to pass to intended beneficiaries without passing through a will.

• Name a beneficiary, this is done most often in life insurance contracts and RRSP’s or retirement options taken after the maturity of the RRSP or pension.
• Assets registered in joint ownership
• Family trusts allow the assets distributed upon the individual’s death pursuant to the provision of the trust

Life insurance is an important part of many estate plans.  Upon the death of the life insured, it provides cash that can be used for any purpose.

• Income for dependents
• Pay any tax liabilities such as income tax, capital gains tax, tax on your RRIF when it passes to your children
• Outstanding bank loans
• Medical bills
• Last expenses

Life insurance is an effective planning tool because it ensures funds are available when required.  It is an affordable alternative to other methods of funding, and proceeds may be protected against claims of creditors if structured properly.

Many estate plans include the use of joint last-to-die life insurance.  This type of insurance generally insures two people under the same policy.  The death benefit is paid when the second life insured dies.  Such coverage is desirable in situations where the individuals insured share a common liability that will only arise upon the death of the survivor.

With the deferment of tax by tax planners, the complexity of individual situations, a well thought out Estate Plan is needed.  We can assist you with your planning.

I would like an Estate Planning Questionnaire