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Life is constantly evolving, as are personal relationships, business partnerships, friendships, pets, business interests, investments, and charitable goals.
Regularly reviewing and adjusting life and estate plans should be considered essential, particularly after each key event such as marriage, divorce, birth, death in the family, investments, change in business ownership, and a new pet. By keeping the list of dependents, beneficiaries and assets up to date, and aligning intentions with current circumstances, a more positive outcome will be provided for those you care about most in the event of death, illness, and incapacity. |
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Life is full of uncertainties, but three things are certain when considering estate planning: death, taxes, and change.
Over time, circumstances will evolve—whether through marriage, divorce, the birth of children, the arrival of grandchildren, illness, incapacity, or other life events. Does an up-to-date will exist? Without a will in place, your wife, children, business partners, and even pets may not be treated well, or benefit according to your wishes. If there are dependents, or successes in life, consultation with a tax accountant and an estate lawyer will bring guidance on dealing with the estate and succession complexities, If life is fairly simple, an online will-making service my suffice. Taking this first step in estate planning starts building the path of a smooth financial and succession future for all loved ones. . |
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Business owners and real estate investors should plan proactively for the succession of company ownership, asset, and investments, both in the event of your inevitable passing or an unexpected event. Preparing in this way helps avoid confusion, conflict, and even the forced sale of assets to settle financial obligations of the estate.
For owners over 50 years of age, an estate freeze can play a financial cornerstone of a succession strategy. By locking in the asset valuation at current market prices, the estate freeze stops any further growth of the primary owner's shares. Yes, this is good. Corporate life insurance can be used to fund their estate tax obligations efficiently. Remember, it's the only way to add unique corporate and personal tax exemptions to your estate planning and the resulting elimination of an unexpected and potentially unaffordable cash call to surviving shareholders and family members can be very attractive. An experienced. corporate insurance advisor will help you evaluate the timing, method, risks, and costs of implementing an insured investment strategy. When executed properly, an estate freeze ensures a smooth legacy transition and safeguards against both business disruptions and estate shrinkage. |
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Estate planning should not only be about protecting and distributing assets; the process must also prepare the family and perhaps business for potential health issues and incapacity.
Creating both a healthcare directive and a legal power of attorney ensures that your medical and financial decisions can be made by trusted individuals, if and when needed, in line with your wishes. Peace of mind should come from creating these important documents as they have the potential to make a significant difference for your family and loved ones. |
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The period following your passing can create an emotional and challenging time for your dependents, and perhaps to employees and partners to your privately-owned company. To minimize discord, and unexpected surprises during the estate settlement process, it’s essential to create and regularly update a comprehensive inventory of all assets and instructions to complement the will.
Include details about all professional advisors, investment and banking accounts, real estate holdings (including income or vacation properties), business ownership(s), and valuable personal items such as artwork and jewelry. Using a tool like a family estate or legacy planning guide simplifies this process, and organize critical information into one place. Loved ones will be able to locate and manage your assets from that guide, as long as they have possession of the guide when needed. Additionally, consider items like a second set of house keys, and making introductions to your professional advisors, bankers, and care givers to further ease the administrative process, particularly if the beneficiaries do not live locally to you. It’s also important to be clear and detailed in your will, outlining your wishes for each asset and indicating when decisions should be made by each of the beneficiaries and by the executors. Specify how the assets are to be maintained, used, and occupied during the period of estate settlement, too. Providing useful information and key details minimizes and perhaps eliminates disputes. |
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Taxes may substantially affect the value of all assets once they become part of an "estate". Consult with a tax accountant, estate lawyer, and life insurance advisor specializing in estate planning to understand some of these complexities and make informed decisions. Their experience and advice will focus on key topics such as the taxation of various asset types, strategies for funding each of the associated final taxes, and the benefits of making charitable donations.
By addressing the impact of taxes, and the associated apportioning, clear instructions stated in the will minimize asset erosion and confusion, preserving not only the value of the estate for all beneficiaries, and but also family harmony through the settlement process. Cash is king! Ensure to plan for the liquidity needed to meet estate tax obligations, interim family bills, and final estate obligations. Either have the cash on hand or utilize Canadian life insurance on either a low-cost short term basis, or long term, permanent approach. |
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Don't postpone another year. Protect loved ones and preserve a lifetime of effort in the best possible way by taking these key steps before it's too late:
Create and keep a current will, be specific, and choose the right executor. Plan for unexpected health issues and potential incapacity. Maintain a comprehensive inventory of assets and intentions for each asset. Regularly review the list of dependents, beneficiaries and pets. Seek professional advice then tailor all estate plans to suit each unique situation and desires. Prepare for the inevitable and the unexpected, and ensure a smooth legacy transition. |