When you pass away, everything you own plus all savings will inevitably become someone else’s. Who your assets and income will go to can either be determined by you or the government. Estate planning makes the difference in who makes this decision. When done properly, estate planning will prevent unnecessary confusion and conflict among your loved ones. These three tips will ensure that this process will go as smoothly as possible.
Tip 1: Name Beneficiaries And What You Want Them To Receive
This step begins with having a will, as well as naming an executor. Without this, the allocation of your properties and accounts will be a guessing game.
You want to make a will with a list of beneficiaries because, without them, the government takes 50% of the value in taxes. Your loved ones will have to apply for a grant of administration, which is a long process and leads to further costs.
Listing beneficiaries specifies who gets what, and how much of each the beneficiary will receive. Proper estate planning leaves no room for mystery or subjective interpretation. Your death will be an emotional time for your loved ones, which can cause some to become uncharacteristically hostile, and potentially cause a strain on relationships that wouldn’t otherwise be there.
Tip 2: Have All Your Investment And Savings Accounts With One Firm
When you get everything in one place, your loved ones will not have to scramble for account information. This step eliminates unnecessary phone calls, and potentially office visits.
Having all your savings and investment accounts in one place isn’t just convenient for your loved ones when the time comes to distribute assets and funds. This is convenient for you, too, as you will only need to reach out to one firm when getting account information.
Tip 3: Consider Adding Life Insurance
If you’re leaving your loved ones with strictly what you’ve accumulated over the course of your lifetime, you may have to sacrifice your own retirement needs in order to give what you want them to have.
Life insurance disburses a large lump sum to your loved ones (which can be over $100,000) as long as you maintain monthly premium payments. Life insurance is an affordable way to put your loved ones in a financially comfortable position.
Doing this also allows you to use your other retirement accounts, such as TFSAs and RRSPs, for your personal needs. Adding life insurance allows you to live the life you want to have in your retirement years, while also supplying your loved ones with funds for the lifestyle you want them to be able to afford.
Begin Planning Today
At Fidusure, we want you to do what is best for you and your loved ones. We will arrange a plan that keeps the power in your hands, so that you can ensure that your beneficiaries will be able to get exactly what they need. Call us today at (647) 567-4702.