Estate Planning & Getting Your Affairs in Order

“It will all be yours someday!” Sometimes, this is what parents say while sorting through endless belongings accumulated over the years. It could be about the little things, the sentimental items we have cherished as the kids were growing up, such as handmade artwork or drawings.

Other times, these items could be more substantial, like family heirlooms or even real estate. The question is always what to do with everything you own when you are no longer here or have become unable to make these vital decisions.

Sorting through emotional belongings is difficult enough. When we add sentiment with tangible financial value, it can turn into a rollercoaster for everyone involved.

This brings us to the importance of estate planning. We all want to make things easier, not harder, for our loved ones after we are gone. Note: If you are in a common-law relationship, estate planning is even more critical as inheritance is not automatic. You need a Will.

Since no one knows what the future holds, it’s never too early to begin putting your affairs in order. Today, we’ll answer some of your most pressing questions about estate planning.

What Is Estate Planning?

In the simplest terms, estate planning is preparing now for your eventual passing or possible incapacitation. It means having a proper Will in place and assigning Power of Attorney to someone you trust to manage your affairs on your behalf. It also means choosing an Executor to close out your estate and distribute your assets after you are gone.

There is no question that it’s an unpleasant topic that many of us would prefer to avoid. However, the time to take care of the task is while you are still physically capable and of sound mind.

To put it in perspective, if you find the subject difficult when you are in good health, how much harder will it be if things change? Early estate planning is the best way to protect your family, your close friends, and yourself.

What happens to the family home or other property after a loved one passes? Read the following posts to learn more:

Why Is Estate Planning Important?

How important is estate planning? Whether expected or unexpected, a loved one’s passing always brings an undeniable wave of grief. The passage of time may be the only real remedy. However, a clear contingency plan on your part can certainly help.

Instead of being bogged down with endless uncertainty over practical and legal matters, your loved ones will clearly understand what to do next. The benefits of estate planning don’t just mean your wishes will be executed accordingly — it can also bring a sense of closure to those you leave behind.

The benefits aren’t just emotional. A clear, uncontested Will streamlines probate and leaves less room for conflict. Assigning beneficiaries to assets such as RRSPs, TFSAs, and life insurance bypasses probate entirely.

The more straightforward you make it to settle your estate, the lower the legal costs will be. More of your hard-earned wealth goes to those who deserve and need it most, rather than to lawyers and the government.

Is Estate Planning the Same as a Will?

People often wonder, “Is estate planning just a Will? What’s the difference?” Although a legal Will is a fundamental part of the process, estate planning encompasses much more.

It begins well in advance, with a serious conversation about what will happen and who will be responsible for which tasks. It doesn’t just outline your wishes after you pass; you’re making a contingency plan for later in life when you are no longer able (or willing) to handle your financial and day-to-day affairs.

How does having a Will help the people you care about most? The posts below will shed more light on the subject:

Who Needs Estate Planning?

Technically, every legal adult should consider estate planning. The older you get, the more important it becomes. If you have a substantial net worth or family heirlooms that could be contested, estate planning is really non-negotiable.

How to Do Estate Planning:

The estate planning checklist begins by gathering your loved ones together and making an appointment with a financial planner or lawyer. Other items on your task list may include:

Choosing an Executor
Choosing a Power of Attorney (often the same as the Executor, but not always)
Keeping an up-to-date list of all assets and gathering account numbers in one location that is known by your Executor and Power of Attorney
Ensuring adequate life and disability insurance
Designating beneficiaries for any insurance policies and bank and investment accounts
Creating a succession plan for the family business, if applicable
Pre-planning your funeral
Keeping your taxes and finances up to date

Do you want more help with the specifics of estate planning? A lawyer or financial planner is an essential resource. However, you’ll also find plenty of insight in the posts below:

Estate Planning Begins With Your Home

Though technically not part of official estate planning, organizing and decluttering your home will ease the burden on your loved ones later. You know from personal experience how difficult it can be to sort through your memories and decide what to keep and what to let go of.

Now imagine your family members trying to do this without your guidance or loving presence. Keeping your home clean and well-maintained will also help if selling is part of the plan. As an added bonus, it will make it more enjoyable to live in now.

Understandably, estate planning involves uncomfortable conversations that are easy to avoid. We all want to believe we will be around for those we care about forever, but life is unpredictable. Instead of viewing estate planning as an uncomfortable conversation, think of it as an act of love.

Would customized guidance and support help you during a sensitive transaction? Our Peterborough real estate agents are committed to helping you through thick and thin. Reach out to team@jeffandkatie.ca or call 705-243-9797 to start the conversation today.