The Four Ds of Estate Planning
Most people do not have an up-to-date estate plan. The famous economist, Peter Drucker once said “The best way to predict your future is to create it.” There are at least four Ds in putting together an estate plan:
Decide
This is your opportunity to create your own plan, deciding who gets what, how much they get and when. In your estate plan, you get to express your values and wishes. This involves more than just money.
Design
There are many options in doing your plan. You can take steps to eliminate taxes, do income splitting with trusts, as well as reducing other costs.
Document
The basic estate plan will usually consist of three main documents, a Will, Enduring Power of Attorney, and Personal Directive. You also have to review the beneficiaries of your RRSPs, RRIFs, RESPs, life insurance policies, company pension plans, and TFSAs. Holding as many assets as possible in joint tenancy with your spouse is also helpful.
Discuss
Over the years, I have become a firm believer in the need to share your plans with your family and other people who are involved in your estate plan. If one of the main reasons of doing an estate plan is to avoid disputes among your loved ones after you are gone, then this step will greatly reduce the chances of a conflict.
What Happens If You Die Without A Will?
In Alberta, if a married person with several children passes away without a Will, our laws state that the spouse will get the first $40,000.00, and 1/3 of the rest of the estate. The remaining 2/3 of the estate will be divided among the children. To many people in that situation, this is not an acceptable solution.
An estate plan is an important part of your legacy, and not just for the money. It is the chance to leave behind a message about what values are important to you.
Quick Fact
Stringam Denecky
has earned a very solid reputation for providing quality legal services to the people of Alberta.