Estate planning, particularly with high net worth individuals, must be a financial priority at practically any stage of life to ensure the well being of your expected beneficiaries.
Preserving your estate with effective planning strategies allows you to maximize your financial affairs, manage your assets and maintain control. While reviewing your personal and family financial circumstances, your goals and desires to transfer your wealth after death must be carefully designed in an estate plan that will ensure the appropriate distribution of assets within the estate. When properly established, a good estate plan will provide a simple, tax-efficient and organized transfer of your assets to loved ones.
Lack of estate planning may leave your family with a financial burden like taxes and probate which will reduce your estate value. Special assets like a family cottage or family heirlooms may be sold to meet the tax obligations instead of passing it on to future generations. The most favourable and valuable assets will also likely be the ones easiest to sell and will need to be sold first. Likely all this could be done in a fire sale setting to access money quickly thereby getting the least value of the asset.
A formal Will, Powers of Attorney, and an Estate Financial Plan are necessary measures to ensure your estate will be dealt with as you would like. Consulting with a Lawyer, Accountant and as well as an Insurance and Financial Advisor can provide recommended strategies to organize your affairs for your estate.
Some things to consider at any point in your life are:
- If something happens to me, will my family have a way of supporting themselves?
- Will my death leave my family with a financial mess to deal with?
- I want to leave something for my children’s or grandchildren’s education.
- I want to leave a legacy to charity.
- I need to eliminate my tax bill so my children get all my assets.
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