It’s an unfortunate fact that only around 25% of Canadians have an estate plan. Going through life without proper estate planning is a risky move.
There’s no denying that estate planning is a crucial aspect of financial management. That way, you can ensure your assets are used in a way that aligns with your wishes.
The good news is that Canadians have access to various tools and resources. This can facilitate successful estate administration and reduce the chances of beneficiary disputes.
Keep reading to learn all about five essential estate planning tools for Canadians.
1. Naming a Power of Attorney
A Power of Attorney (POA) is a vital tool that gives someone the authority to make financial and legal decisions on your behalf. This would happen if you become incapacitated for one reason or another.
Designating a trusted person as your attorney can prevent complications. It’ll also ensure prompt decision-making during critical moments. Always be sure that you’ve chosen someone who understands your wishes and will follow them to the letter.
2. Figuring Out a Last Will and Testament
Crafting a last will and testament is a major step in estate planning. This document makes your asset distribution wishes as clear as daylight. This almost always applies to a situation in which you’ve already passed on.
The key is to take the time to define your beneficiaries. Don’t forget to outline their respective shares. Doing this work helps reduce the potential for estate disputes later on.
3. Research Estate Beneficiaries
Are you unsure who your estate beneficiaries will be? This is why it’s good to start working on this critical decision.
Do you have a limited number of family members? If so, you can spend time researching and finding estate beneficiaries who are related to you. Many people have relatives they never knew about.
Would you rather the beneficiary be a certain organization, such as a library or museum? In this case, it’s also a good idea to do in-depth research into the organization’s practices.
4. Relying on an Executor of Will
Naming an executor in your will is a strategic move to ensure the orderly administration of your estate. The executor must manage the asset distribution according to your desires.
Choosing a reliable and responsible person for this role is crucial. That way, you can avoid complications during the estate settlement process.
5. Estate Litigation for a Smoother Process
Despite careful planning, disputes may crop up during the estate administration process. Estate litigation is sometimes necessary when conflicts get out of hand.
Advice from an estate litigation lawyer can help solve these legal problems.
Estate Planning Tools Can Lighten Your Load
With the right estate planning tools, you can get more work done with much less stress. Your loved ones will admire your commitment to securing their future.
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