As you get closer to your retirement, the need for planning financially is imperative. As expenses and bills continue to rise, including life uncertainties, you must keep a tab on your expenses and ensure your loved ones are taken care of when you are no more. Plan your will by getting in touch with the experts at InsLyf today.
What is estate planning?
It is a process where an individual creates a set of instructions that specifies how your assets are evenly distributed in the event of your demise. Your estate plan will include several legal documents so your dear ones won’t have to stress about your final wishes. When you are designing an estate plan, you contemplate the future when it comes to your assets and your finances. Even when you are alive, an estate plan can be helpful in managing affairs, including making sound decisions about your financial affairs.
Leave a lasting legacy
Most people do not think about estate planning because they assume it is only for the wealthy or for those who have retired. To make sure your assets are in order, but also not leave it up to your dear ones by relieving the stress from your loved ones. Creating an estate plan with a will that is valid will ensure your transition from this life to the next much smoother knowing that you have a plan in place for your family to appreciate thinking on their behalf when you are no more.
Why it is vital to make a will?
As the saying goes, “Nothing is certain, but death and taxes.” While we as individuals cannot control either of the two above-mentioned events, you can create a will to ensure your financial affairs are in order, and your loved ones are well taken care of after your death. If you do not have a will or haven’t created one, the province you reside in decides how your assets will be distributed. Based on the current laws, the first $50,000 goes to the surviving spouse, the rest is divided between the children and other beneficiaries. If you do not have a surviving spouse or children, your parents will be next in line to receive your assets, followed by your siblings. Passing away without creating a will also leads to additional expenses and delays. The court will appoint a bonded administrator to serve as the executor of the estate. Additionally, children under the age of 19 must be passed along to the public trustee. However, it can be time consuming and expensive to appoint an administrator.
Why must you have a power of attorney?
A power of attorney is useful when you are out of the country for a long period of time and need someone to handle your banking, take care of your taxes, and manage your affairs when you are not present. Power of attorney is very useful for people who are physically disabled or mentally disabled and require someone to handle these tasks that you struggle to do. If you do not have a will, you are considered to die intestate i.e. without a legal will in place. In this event, the province will decide how the assets should be distributed.
Checklist for estate planning:
Below-mentioned is a list to keep in mind when planning your estate:
Create a legally binding will
Have a power of attorney
Creating a will when you are alive
Have an insurance plan
Create final arrangement details
In the event you pass away, you can offset the cost of income taxes by protecting your estate with a permanent life insurance plan. Otherwise, you can transfer your assets tax-free to your spouse/family or children.
Benefits of estate planning:
Prevents any financial and legal grief to your dear ones
Helps avoid complications or disagreements in the family
Reduced probate fees and estate taxes
Identify who will take care of your financial affairs in the event of your death or incapacitation.
Making sure that all your financial assets and affairs are passed on to your loved ones
For further information on estate planning or if you require expert assistance, please do not hesitate to reach out to our team at InsLyf. Give us a call today at +1 905-901-1717 to schedule an appointment.