For many, the Estate Planning journey starts with a life changing or often tragic event within their immediate family circle. Not the best way to plan for the future.
Why have an Estate Plan?
Estate Planning is about protecting your assets, enabling you to pass on your assets to your family tax effectively and creating a long term generational legacy that will be appreciated by generations to come.
A Basic Will brings with it many risks given its limited future planning ability. However a comprehensive Estate Plan can outline your wishes in greater detail and plan for the unexpected.
Pitfalls of not having a comprehensive Estate Plan
A Basic Will does not allow for the comprehensive care of your children when both parents are no longer around. A Testamentary Guardianship (generally not part of a Will) helps provide certainty on who will care for your children if you're no longer there.
Some blended family situations can be quite complicated when you merge families. Even with a Will things can go wrong .This can often result in costly court proceedings. Proper Estate Planning ensures that the intended beneficiaries of your estate are fully protected.
It may surprise you, but 70% of contested estates involve adult children from the family. No matter how close your family is, the possibility is very real, and the actual cost could easily be 25% or more of the estate’s assets.
NO TAX PLANNING
Another benefit of a carefully planned Estate Plan will be the Capital Gains Tax benefits with tax effective income splitting.
Benefits of an Estate Plan
Estate Planning provides generational security, with the ability to hold certain estate assets in trust for as long as you determine. This allows your family the protection it deserves.
Protection against future litigation, creditors, bankruptcy and or the impact of the family law court when a divorce or separation occurs is mitigated long after the assets have been dispersed, if a comprehensive Estate Plan is in place.
It provides a tax effective income stream for your children’s expenses and long-term education.
CARE FOR DEPENDANTS
Careful Estate Planning protects and provides care for children under 18, and any other family members that require long term care or a beneficiary with a dependency.
It provides enormous taxation benefits, through income splitting and capital gains tax strategies for all beneficiaries including minors.
It keeps the value of your estate for future generations, and your family will appreciate the legacy you created forever.