![]() ![]() ![]() If you have assets outside of Canada, an estate plan that covers these assets is particularly important since out-of-country property can complicate probate proceedings. This way, less of your loved ones’ inheritance is lost to fees and taxes. Since the money in the policy goes straight to a named beneficiary, it’s not considered part of the estate and can be used to pay off the taxes your estate would have to pay if it earned capital gains, for example. ![]() This means that your loved ones will receive immediate financial assistance after you’re gone, without having to go through probate to access the funds.įurthermore, the funds from a life insurance policy can be used to offset any taxes or debts your estate may have once you’re gone. If you have a life insurance policy in place, not only will the funds in that policy go to your named beneficiaries after you pass, but those funds will also be tax-free. The general rule of thumb is to look for a policy that covers about 80% of your annual income, projected for the next ten to twenty years. Setting up a life insurance policy is another tool in your arsenal toward creating a comprehensive estate plan. You can read more about creating a valid will in Ontario here. Your will should also include your funeral plans and any other plans you want to be carried out in your name, such as donations to charity or pet care for any pets that may outlive you. Your will should cover all of your assets and, if possible, assign beneficiaries to them. They won’t have to pay for the service at potentially inflated prices, and won’t have the added stress of organizing everything since it’s already been sorted in advance. Furthermore, prepaying for a service with a specific funeral home takes a huge load off of your loved ones’ shoulders once you’re gone. However, savvy planners go one step further and already make pre-arrangements with the funeral home of their choice, ensuring that they’re locking in today’s prices and get exactly the kind of service they envisioned. If you have specific wishes for how you’d like your funeral service to be conducted and how you’d like your body to be put to rest, then it’s important to have those plans in writing in your will. When you’re gone, that money will come out of your estate your beneficiaries will only be entitles to whatever’s left. Mortgages, credit card debt, and student loans are all going to have to be paid off sooner or later. While creating this inventory, it’s also important to keep an eye on any ongoing debt you might be accumulating. Valuables, such as jewelry, antiques, and rare collectibles Retirement accounts, such as pensions, TFSAs, and RRSPs Vehicles, such as cars, motorcycles, or boats įinancial accounts, such as chequing, savings, and non-registered investment accounts Personal property, such as clothes, books, family heirlooms, and furniture This means that your first step will consist of creating an inventory (and an approximate value appraisal) of all of your assets. You can’t create a solid estate plan without knowing how big your estate is. ![]()
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