Our Services - Estate Planning
Estate planning is the process by which your assets are distributed in accordance with your wishes for maximum benefit of your heirs.
There are four different ways that property can be transferred to beneficiaries.
1. Will: probatable assets
2. Non probatable assets-registering assets as joint tenants
3. Living trusts
4. Gifts during your lifetime
Each method of passing on assets has advantages and disadvantages. Most individuals wish to control and direct ownership of their property for as long as possible. The individual’s intentions as to the disposition of property is often confidential until death.
The cornerstones to an effective estate plan are professionally drawn Wills and Powers of Attorney for both medical and financial that are current. These documents should be reviewed periodically (suggest maximum 5 years) to ensure they continue to reflect your desires and any changes in your personal situation since the last review. It is critical that a lawyer be used to draft these documents.
Having an up-to-date estate plan and a valid will is the only way of ensuring your wishes are carried out. If you die without a will, you leave heirs with unanticipated legal problems and tax burdens, and your property may not be distributed as you intended.
If you die without a valid will:
- your beneficiaries are determined by provincial law
- the courts appoint a administrator of your estate
- the courts appoint a guardian for minor children
- the estate may be subject to needless taxation
Probably the most devastating blow to your estate may be when your executor discovers that a final return must be filed within six months of death and taxes due paid immediately. This could result in assets being sold at "fire-sale" prices to meet the tax demand - destroying the plans you had in place for your estate and your heirs.
At Hunter-Gray Financial we can assist in this planning process by:
- Reducing tax so as to maximize the benefit to your heirs.
- Suggesting planning strategies for consideration
- Provide a referral to a lawyer or accountant in the area
What are the Tools of Estate Planning?
- Wills
- Power of Attorney
- Living Wills
- Estate Freezes
- Tax Planning
- Gifts to Family Members
- Charitable Giving
- Critical Illness Insurance
Life insurance can play a significant role in the estate plan.
It provides funds in the estate to pay off liabilities such as tax or mortgages. This ensures that non liquid assets such as a cottage or business do not have to be sold to settle tax liabilities but can be passed on to heirs.
Life insurance proceeds can be used to establish a fund to provide income for an individual you wish to support.
Putting a well-thought-out estate plan into action will effectively provide for your family and heirs now and after your death; distribute your assets according to your wishes, and minimize taxes both now and in the future.
Below is a link to a Will Planning Workbook that will help you prepare for your meeting with your lawyer:
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