Chapter 15 - Estate planning

Question 1

General estate planning - why is it important, what documents do you need, what types of things should you do, how are you going to distribute

Answer 1

Estate planning is a definite plan for the administration and disposition of one’s property during one’s lifetime and at one’s death. Two components:
- Building your estate through savings, investments, and insurance
- Transferring your estate at your death in the manner you specify (in your will)
It is important to have a will or else your assets get distributed through the legal system
You need to keep the following documents:
- Birth/marriage certificate – yours, spouses, childrens
- Legal name changes
- Military service records and veteran documents
- Gov’t benefit documents
- Insurance policies
- Safe deposit box records
- Bank accounts
- Stock/bond certificates
- Registration of automobile
Standard will costs $300 +

Question 2

Wills – difference between regular wills, holistic, etc. living will, power of attorney

Answer 2

Will – the legal declaration of a person’s mind as to the disposition of his/her property after death
Holographic will – a handwritten will you prepare yourself
- Should be written, dated, and signed entirely in your handwriting
- May not be legal in some provinces
Formal will – usually prepared with an attorney’s assistance
- Can be typed or on a preprinted form
- You must sign the will and acknowledge it as your will in the presence of two witnesses, neither of whom are the beneficiaries
Notarial will – available only in Quebec
- Is typed and signed in the presence of the notary and at least one witness
- The notary keeps the original will and can issue a certified copy to the heirs once proof of death has been established
- Is a legal deed, so the will does not need to be prorated
Living will – provides for your wishes to be followed if you become so physically or mentally disabled that you are unable to act on your own behalf
- Discuss your living will with those close to you, and your family doctor
- Sign and date it before two witnesses
- Give copies to those close to you
- Requires careful thought
Ethical will – a document that dispenses emotional and spiritual wealth to heirs
- Is a way to pass on your values, share lessons learned, express love, and address any regrets
Power of attorney – legal document authorizing someone to act on your behalf
- Usually if you become ill or incapacitated
- Power can be special (to carry out certain acts or transactions), or general (to act completely for you)
Letter of last instruction
- Not legally enforceable
- Provides heirs with information
- Should include: your funeral preferences, names of ppl you want notified, location of safe deposit box & bank accounts, assets and debts