Contact a lawyer now

Family Lawyer Winnipeg Blog

What is Estate Planning in Canada Featured Image

What is Estate Planning in Canada?

Like any other country, Canada allows its citizens to set some rules and regulations regarding their asset and property management after their death. It is called estate planning. So if you are going for estate planning in Canada, this article will help you.

Let’s know the definition at first.

What is Estate Planning?

It’s a plan about the assets you are about to leave for someone else. Estate planning is verily applicable if the owner thinks they are not capable enough to oversee their assets.

Anyway, either they die or before death, the wish or thought that where a person’s assets would go in who’s hand is a big issue. As a definition, estate planning is the planning process that describes the transfer and management of the property after your death.

If there’s no plan from the person dying on the estate planning, it might go under the government’s intervention.

Your Estate Plan will be one of the biggest changes that you’ll have to deal with either while you’re going through a divorce or right after you’re done.

Yes, you can remember it as similar to a will.

How Can You Proceed with Estate Planning in Canada?

It’ll be natural thinking how a person can reach estate planning’s inception. Nowadays, the internet, websites, and a handful of apps can make it possible to do a lot more than a person could think hardly before.

So, the basic idea is simple, browse and gain knowledge. Do your plan yourself with the resources you have around. After that, take the final touch of a lawyer.

But remember, estate planning is nothing like a call and some gossip having a cup of tea. You’ll know while dealing with it. But nothing to worry about. Inception is the halfway accomplishment. Just know what you want to do.

Things You Need to Know About the Estate Planning

Below are the fundamental factors, elements, and discussions about estate planning.

Assets

The properties you own are considered assets here, such as cash, car, jewelry, houses, investments, savings, land, retirement accounts, etc.

Documents

Your estate planning won’t be as simple as just a single clause. The document list consists of a will, personal letter of intent, guardianship, beneficiary designations, healthcare power of attorney, and other papers. Talk to your lawyer to know the exact paper lists.

Note that you’ve got a lot of paperwork, and gathering them will make you meet different people like tax specialists, financial planners, and notaries other than your lawyer.

Will

We have talked about it earlier. It’s a legal document stating the owner’s last wishes regarding the property or assets.

Guardianship

It specifies the person or authority to take care of the dependents, who are the heirs or had been under the guardianship of the deceased person.

Trust

It’s an agreement that gives an entity known as the trustee to hold rights of assets on behalf of the actual owner. They work for the benefit of the dependents or the heirs as well.

Who Should Prepare an Estate Plan and When?

It’s not a tough question to answer. And we can already sense what the benefits and importance of an estate plan are. Now, let’s be a little specific.

There is a misconception that the estate plan is for rich people only. But it’s perfect for the people who need it, and if they prepare it timely.

If You Have a Savings Account

Naturally, a saving account must have a legatee. That’s designating a person who’ll get the fund in the event of the account holder’s death. Normally people choose their close ones for that.

Ownership of Home and Other Properties

If you have a home or bought one recently, you need estate planning or updating it.

Marriage or Remarriage

Marriage makes estate planning more obvious than in regular times.

Travel

It’s a recommendation from the specialists that one should have or update the estate plan if the owner is going to be on a long trip.

Birth of a Child or a Grandchildren

A child means an heir. So, for the future, estate planning makes real sense.

Inheritance of Properties

One may receive any kind of asset or property as an inheritance. That’ll be the update in one’s assets. The changes should also be updated in papers. And, don’t forget about the estate plan.

Divorce

Changing lifestyles and relationships bring changes in financial activities and states. Divorce comes with several financial issues like child custody or spousal support. Thus, it is considerable for the estate plan to be reformed.

Whom Should You Choose as Your Heir During State Planning

Estate planning is not something you do every day as your grocery. So, with the best idea, you have to choose the best and right people.

  • List who should be your heirs and how much each deserves. It won’t be worth it if justice is not served.
  • Choose the guardian carefully who won’t be the reason for harming your beneficiaries. Rather, they would be the best to perform the job.
  • A Power of Attorney holds power over your property after you. They should be the right person who is knowledgeable of their duties and efficient enough to play the role.
  • Like the Power of Attorney, you have to ensure that you have chosen the ideal person fit to execute your will properly.

Should I Need a Lawyer for Estate planning in Canada?

A lawyer isn’t inevitable to write a will. You can easily outline your distribution of assets and last wishes. What shouldn’t be missed are the major elements. However, a helping hand like an online will service or lawyer can make this easier anyway.

Another essential of estate planning after drafting and ensuring the document is to sign on the paper by the owner and 2 other witnesses. After the signature, store the paper in some safe place where the family member or the executor can access it easily.

Final Words

We hope you have no confusion about estate planning anymore. Essentially, estate planning in Canada gives you the provision to manage your property among your heirs. So, if you haven’t prepared yet, consider going for it soon. Yet, if you have any confusion, don’t hesitate to consult a lawyer.