Happy Belated Canada Day! I hope you’re finding some time to take off this summer, or at least getting a chance to enjoy the sun we’ve all been waiting for.
This month’s topic is a little less fun to talk about, but is one of the most important things you can do when managing your wealth. I am, of course, talking about making your estate plan.
An estate plan usually consists of a will, a trust, and designation of power of attorney. Basically everything required to make sure your assets can be managed properly even when you are not fully capable.
The fact is, you’ve worked hard to accumulate all your wealth during your life, so you want to be very deliberate about who it goes to. Not being specific in your estate plan can mean a drawn-out and expensive ordeal for your loved ones, which is the last thing you would want to do to them.
You don’t need to have a massive portfolio of real estate or a rare art collection for estate planning to make sense. There are many reasons why you need an estate plan, all of which will benefit your family in some way.
First off, and maybe most importantly, an estate plan helps you name a guardian for your children should both parents die before turning 18. Not a pleasant thought, but important to do all the same.
Next, estate plans help you direct to whom your assets go, which means that you can designate those you consider the most financially responsible, rather than having the courts make the decision for you.
This also helps you avoid passing the money along to someone who is having creditor issues or who is going through a divorce, since the assets could become tied up in those proceedings.
As a corollary to this, estate plans also help avoid family messes. We’ve all read stories about a vague will resulting in a family tearing themselves apart over the assets.
So if you’re worried that your estate plan is not as specific as it should be – or is non-existent – then schedule a meeting with us at Kismet Wealth Group to go over all the details. It will help you sleep better at night knowing you have planned for all the contingencies and your family is taken care of.