Every February candy, flowers, and gifts are exchanged between loved ones, all in the name of St. Valentine.
The entire month of February has long been associated with romance. Here in Canada, it has sadly also become associated with a last minute scramble to make RRSP contributions. Hardly romance inspiring!
I “propose” we put the romance back into February and show our families just how much we love them by setting aside the time to prepare or update your Will and/or Power of Attorney. Not romantic, you say? Let me prove you wrong.
There are many certified financial planners who have an interest and added qualifications in estate planning. While I recommend you use a lawyer to prepare the estate documents, financial planners can be invaluable in helping you address the many questions you need to consider before seeing the lawyer. Questions such as:
· Have you provided adequately for your dependants?
· Have you established a safe location for your important papers (will, insurance, tax returns, bank and investment account records), and do you loved ones know where that is?
· Should you leave an inheritance outright, or is it better to consider a trust?
· What are the tax implications to your estate plan?
· Have you considered probate costs and how to pay them?
It takes time and effort to put an estate plan in place. Don’t expect it to be a weekend project. Just as you carefully chose the individual who you will spend you life with, so you should carefully plan how to protect and provide for your spouse, children and any other family members if you can’t be there with them.
The individual who prepares a Will relieves their family members of the following concerns:
· How and to whom your assets will be distributed after your death
· What charitable organizations you may wish to benefit from a gift
· Who will care for any minor children and at what ages those children may receive any cash bequests
· Where and in what manner you wish to be laid to rest
The individual who prepares a Power of Attorney has spared their loved ones the following decisions:
· How and by whom your assets will be managed during your lifetime if you can’t do it for yourself
· Who will pay your daily bills if you are incapacitated
· Who will make the decisions concerning your care and welfare if you am unable to make them for yourself
About 10 years ago, I finally persuaded my parents to prepare Wills and Power of Attorney documents, naming each other as executors, and my eldest sister and I as back-ups. About 5 years ago, my mother began exhibiting symptoms of dementia. My sisters and I are comforted by the fact that, whatever happens, we know what our parent’s wishes are and have the ability and the authority to carry them out when the time comes.
That to me is a true gift of love.
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1 comment:
Hi Trisha!
Great advice. It is a shame that more people don't have these contingencies in place BEFORE they are needed. It makes dealing with the diminishing health, mental capacity or passing of a loved one a little less stressful. Good communication and support especially about finances are absolutely key to making these inevitable bends in life's road easier to negotiate.
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