One of the most neglected elements of financial planning is proper and in-depth estate planning
Peace of Mind.
In addition to ensuring all beneficiaries are in order*, a good estate plan looks at potential tax liabilities upon death. It examines the possible solutions to those in advance. A typical example is a family cottage. If there are not many assets left other than the cottage, it may be that the tax bill will force a sale of the cabin even though that may not have been the purpose of the parents or grandparents.
Another significant issue is streamlining the estate. Some estates can take years to settle, but if they are set up well, all financial assets should be settled within weeks.
*Free tip* If you make your beneficiary designation on RRSPs and Pensions as ‘the estate of…,’ these assets will not flow through efficiently to family members. It is almost always advisable to name a person rather than an estate.
A Living Will
Ultimately, no one wants to leave loved ones with too little or give too much of their assets away to taxes. A good estate plan will try to account for this as much as possible in advance. Do you have a living will?