Many people think (quite wrongly) that estate planning only keeps the wealthy up at night. In truth, everyone can benefit from skilled and competent estate planning accountants in Markham. How? Well, a sound estate plan makes sure that your home, your financial affairs and all your crucial assets are in good stead following your demise. Thus, you are able to provide for your family long after you’re gone.
A question we often field is; “Why it is so important to have an estate plan?” Life is unpredictable. Settling your affairs is certainly not something that most people want to grapple with. However, the cost of not doing so impacts your loved ones adversely. A good estate plan;
- Lets you be in charge of who inherits what
- Lets you name your child’s guardian
- Minimizes tax obligations on what is left behind
- Reduces the likelihood of expensive legal battles between family members
So whether you are determining the fate of your pensions, life insurance, assets, cars, real estate or debts, estate planning plays a huge role. In this article, we further delve into the main benefits of a sound estate plan.
Your Immediate Family is Taken Care Of
An estate plan doesn’t simply pertain to real estate or pricey art pieces. Perhaps its biggest advantage is that you will be making preparations for your spouse to be taken care of upon your demise. Nobody likes to think about an early demise, but one must always be prepared for the unpredictable. In case both you and your spouse pass before your children turn 18, the estate plan names a guardian to care for them.
When there is no such will, the court system steps in to decide who raises your children. For most, this isn’t a decision they’d like to leave to strangers. Hence, an estate plan!
Your Property Passes to Beneficiaries of Your Choosing
Apart from upper-class individuals, there are several middle-income folks that need a solid plan if something were to happen to the bread earner. With an estate plan, you get to name who will inherit your assets.
Whether it’s a second home, a piece of art or a share portfolio, you call the shots on what happens and these do not fall into the hands of unintended beneficiaries.
Again, without such a plan, the courts get to determine who receives your assets, a procedure that can take ages and stack up fees for your loved ones. Remember, courts don’t always rule that the remaining spouse should get what you leave behind. Nor are they aware which of your offspring is most deserving and which one must not get full access to your valuables. The safest option? Seize the power you have in your hands today and name your designated heirs.
Your Heirs Are Spared From Heavy Tax Burdens
Estate planning is geared toward protecting your family; including protecting them from huge CRA tax burdens. Crafting an estate plan translates into minimizing the amount of taxes levied on your estate after your demise. This means your beneficiaries get to keep a large chunk of the money you’ve allotted to them instead of losing that to tax obligations.
A little planning goes a long way. You will be able to offset much or all of the inheritance taxes which can rake up when tallied.
You Keep the Peace Between Family Members
Money is known to draw out the ugly side of human nature. You must have come across instances where a person with money passes away and the family immediately commences a war to determine who gets what. One child may be under the impression that they deserve more than the other, leading to costly legal squabbles.
An estate plan stops fights before they even begin. You get to control finances and ensure that they are handled the way you intended them to be.
Accordingly, you can make customized plans so that one child with health problems is taken care of, or a child with notorious finance habits has a trust fund set up in their name instead of receiving a lump sum.
Estate Planning Puts the Power in Your Hands!
With proper estate planning, you can ensure that your assets are transferred to intended heirs, allowing them to have the necessary financial security they need.
It’s never to early to start preparing a plan. At HSM, we craft holistic and tailored plans for your unique financial requirements. You can count on us to protect your family’s financial health in the years to come.
