Death is an inevitable part of life, and we don’t like to think about it much. However, it is essential to think ahead and plan for the future, especially by preparing an estate plan. It’s a critical document that ensures your last wishes are met and helps to prevent chaos and confusion among your loved ones after your passing. An estate plan will divide your property and assets, designate guardians for your minor children, and even help with tax planning. In this article, we’ll discuss the essential elements that must be included in your estate plan.
A Will:
A will is a legal document that specifies how your assets and property should be distributed after your death. If you don’t have a will, the court will decide who gets what, which may not be in accordance with your wishes. Your will must specify the distribution of your assets, the person responsible for executing your will, and the amount of inheritance for each beneficiary.
Enduring Power of Attorney and Personal Directive:
An enduring power of attorney and personal directive designates a person to manage your finances and healthcare decisions if you become incapacitated and cannot make decisions for yourself. An enduring power of attorney will allow your designated representative to access your accounts, pay bills, and make financial decisions on your behalf. A personal directive will allow your representative to make medical decisions for you if you are not able to.
Guardianship:
Designating a guardian for your minor children is another crucial element of estate planning. If you have minor children and both parents pass away without naming a guardian, the court will appoint someone. This may be a different person altogether, so it’s essential to ensure that your wishes are met. You’ll want to consider factors such as age, location, and values when choosing a guardian.
Beneficiary Designations:
Life insurance policies, registered investments, and other accounts require beneficiaries, and these designations must be updated regularly. Make sure you list primary and alternate beneficiaries, and check with your retirement account custodian to ensure your designations are updated and accurate.
Digital Estate Plan:
As our lives become increasingly digitized, it’s critical to include a digital estate plan that covers things like social media profiles, online banking, and other online accounts. You may want to consider designating a separate executor for your digital assets, leaving instructions for how to access and handle these accounts.
When it comes to estate planning, everyone’s circumstances are unique, so it’s essential to talk to a lawyer or estate planning professional who can help you create an estate plan that meets your specific needs. While drafting an estate plan may seem overwhelming, it’s an essential step to take that can provide peace of mind for you and your loved ones. By following the steps discussed in the article, you can create a comprehensive estate plan that helps to ensure your last wishes are met.
Reach out to us today and let Summit Legal Group guide you in the estate planning process.
AUTHOR
Craig Gorham is a Certified Executor Advisor at Summit Legal Group, guiding clients through the Estate Administration process with compassion, empathy and a wealth of specialized knowledge. Craig can be reached directly at 587-393-2069 or craig@summitlegalgroup.ca.
