The Importance of an Estate Plan
Monday, July 12, 2010 at 4:00PM
Administrator in estate planning, news, rrsp, taxes

It's usually not the first thing on people's to do list, but the truth is estate planning should be a priority at almost any age. 

Proper estate planning is a way to ensure a simple, organized and tax efficient transfer of your assets to your loved ones on your passing. Proper estate planning should also be updated on an ongoing basis, especially when the circumstances change in your life. The following are some points to think about when developing your estate plan:

Your Will

Your will is a legal document setting out your wishes on how your assets will be distributed upon your death. A will generally contains the following: 

Naming Beneficiaries on Insurance Contracts

Naming specific beneficiaries on your insurance contracts (such as life insurance or segregated fund contracts) can allow death benefits to bypass your estate. By bypassing your estate the beneficiary will receive the funds privately and avoid probate, which can significantly reduce administration fees. Also, by avoiding your estate the death benefit proceeds can potentially avoid claims made by any creditors.

Minimize Taxes Owing on Death

There are different strategies you can use to minimize taxes owing on your final tax return thus leaving more money to your loved ones. Some of these strategies can include:

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