Estate Planning

Divorces are obviously messy affairs: they involve hurt feelings, anger, and messy financial and legal complications. When you get divorced, that is a good time to re-evaluate your Will and estate plan. You have to consider not only splitting up your assets, but your insurance policies, Power of Attorney, Living Will, retirement and more. 

The very first thing you can do is to reassess and change your Last Will and Testament (that one is obvious). You’re most likely going to want to change up your Last Will  and change who your beneficiaries are. You may want to remove your ex-spouse as your Executor (if you have that person listed as your Executor). If you have step-parents, step-children and the like, you may also want to make the same changes to your Will. 

Divorce can change your estate plan in its entirety. The following other steps should be taken to change up your estate plan: 

1. Change your Power of Attorney (for the same reasons you would change up your Last Will). 
2. If you have a Trust, you may want to have it changed. You may want to consider a domestic asset trust. 
3. Re-evaluate your insurance policies (who is going to be a beneficiary on your life insurance, for instance?) Are you going to have a new beneficiary? 
4. Splitting up your retirement accounts (this should be obvious). It may be a complicated and tedious process to go through, but one that is necessary, however.

Divorces can be hard to go through, and the legal paperwork to wade through can also be a lot to do deal with: it can be tiring, emotional and wear you down. All of these are necessary tasks to engage in when you are divorced. Your estate plan should be changed, just like how everything else in your life will change after a divorce. You can read more by clicking on the link below: 

Divorcing? Here’s how to update your estate plan.

It sounds tedious and confusing; estate planning can dredge up images of being buried in paperwork. Single adults who feel as though they may not have much in the way of assets *cough* millennials *cough* still have to plan for their estate. If you do not have a spouse or children, you still need to plan, even if you feel if you have little in the way of assets.  

Consider where are you at in life and what assets you DO have. You do not know how life will change and how things will work out later on down the road. When you pass away and you have debt, the debt will be paid off through your assets and your estate (if you live in Alberta).  If you are an adult who is planning to gift your valuables and your income away, you aren’t likely going to know what changes are coming down the road or when you’re going to pass away. Spending everything during your lifetime may not be realistic. Later in life, when people try to ensure something is passed down to their beneficiaries, people try to leave as much as possible. You may not want to spend all of your income and assets for short-term pleasures right away. 

There are also Power of Attorney documents and Living Wills to consider: in the event something happens to you and you wind up in a coma, these documents ensure that your money and health is taken care of. It’s best to get all three documents done. People don’t usually think of getting these documents complete until they reach their their 30’s or 40’s. It is recommended that one should create (or at least think about) starting these documents around their later 20’s. That is around the time when their careers are starting out. Find out more information by clicking on the link below: 

Estate Planning for single adults.

Both Millennials (born roughly in the early 80’s) and Gen Z (born roughly around 96′ and 97′) are struggling in an economy that has seen the price of everything increase. Job prospects are more difficult and saving for retirement is much more difficult than it was for earlier generations. Estate planning is, however, still important for everyone, no matter how few in the way of assets and possessions a person may think they have. Gen Z is no different; they may believe they have fewer assets than their parents, but they still need to engage in estate planning. They also have different values than other generations, and that needs to be respected when it comes to estate planning. 

The first thing to note is that Generation Z is the first generation to practically be born with phones in their hands; they are more adept with  technology than their parents are. This can affect the way they plan for their estate. As previously mentioned, they have different values from their forebearers; they’re more likely to volunteer and put themselves behind political and social causes. This effects what they value in life and where they want their charitable donations to go.

They are also more likely to want to create their own (tech) startups. That may mean that  leaving assets in a discretionary lifetime trust would be beneficial for members of Gen Z. You can read more tips on how estate planning is different for Gen Z here.

Inheritance can be a tricky issue. Leaving behind money for your loved ones can be a great way to ensure that they are taken care of after you are gone. However, there are several important things to consider when planning your inheritance. Here are our top seven tips: 

1. 1. Make a Will: The most important step in leaving behind a set amount of money is to make a Will. This ensures your assets are distributed according to your wishes.
   2. Review your Will regularly: Your Will should be reviewed consistently to make certain that it reflects your current wishes and that it complies with local laws. 
   3. Consider creating a trust: Trusts can be a great way to protect your assets. A Trust is a written document providing that property be held by one (the “trustee”) for the benefit of another (the “beneficiary”). 
   4. Communicate with your loved ones: It is important to communicate with your loved ones about your plans. This will help to avoid confusion and disputes after you are gone.
   5. Consider tax implications: Your inheritance may be subject to taxes. It is important to consider this when making plans.
   6. Review your beneficiaries: Make sure that your current beneficiaries are up-to-date. Also be sure to name backup beneficiaries in case one of your primary beneficiaries predeceases you.
   7. Review your insurance policies: Make sure that your insurance policies are up-to-date and that they provide adequate coverage for your loved ones.

Leaving behind an inheritance for your loved ones is an important step in ensuring that they are taken care of after you are gone. However, there are several important things to consider when planning your inheritance, such as creating a Will, communicating with your loved ones, and consider the tax implications. Follow these tips to  ensure that your money is properly distributed. Do you need more tips? Checkout our Knowledge Centre for more information..