|
Vancouver, B.C. (March 12,
2001): Estate planning is the process
of developing your comprehensive personal plan
that preserves your family wealth and distributes
it to your family members according to your unique
wishes.
Adrian Mastracci, fee-only
investment counsel and financial advisor with
KCM Wealth Management, comments, "A well
thought out estate plan ensures that your family
is cared for should anything happen to you."
Mastracci begins with this question
for all his clients, "What is important
about estate planning to you?"
- Is it the preservation of your current wealth?
- Is it providing for your spouse and dependants?
- Is it enjoying more quality time with your
family?
- Is it the orderly transfer of your family
business?
- Is it minimizing your probate fees and income
taxes?
- Is it funding education for the children
or grandchildren?
- Is it leaving a legacy to a charitable cause
and to your loved ones?
"Once your objectives are established,
you can begin drafting your estate plan that reflects
your particular wishes," says Mastracci, "Developing
your estate plan can be a significant commitment."
Mastracci's key estate planning
considerations are:
- Make a detailed list of all of your assets
and liabilities.
- Review the capital gains or losses for all
your assets, and your desire for the disposition
of each asset.
- Decide whether to leave your estate to family
members upon your death either outright or by
testamentary trusts, and whether a portion of
it should be dealt with while you are living.
- Your goals while living may be achieved by
vehicles, such as alter ego trusts or joint
spousal trusts.
- If the orderly succession of a family business
or farm is important, review the application
of an estate freeze and the possible utilization
of the $500,000 capital gain exemption.
- Review the granting of enduring powers of
attorney and how provincial legislation (such
as the Representation Agreement Act of BC) may
affect your situation.
- Review any special needs for your spouse,
children and other dependents.
- The appointment of capable executors and
trustees is very important. They have the same
powers as you do in dealing with your accumulated
wealth.
- The appointment of guardians for minor children
is essential. Your guardians and trustees may
have duties for up to 18 years, or longer, depending
on the children's ages and the life of the trust.
- Consider appropriate beneficiary designations
for your RRSP, RRIF, RESP, DPSP, employer pension
plans and life insurance policies.
- US citizens living in Canada and Canadians
who have holdings in the US, should review the
US estate tax treatment they face upon death
and the possibility of double taxation.
- Review the implications of individual or
joint ownership of assets for taxation and probate
purposes.
- Review your family's need and ability to
maintain the current lifestyle if something
happens to you.
- The cornerstone of your estate plan is a
well crafted Will. This document should be reviewed
periodically as legislative changes and personal
life events can alter your objectives.
- Your Will should provide a framework to distribute
your assets to your named beneficiaries in a
timely and tax-effective manner.
- If you die without a Will, your assets are
divided according to provincial legislation.
This may result in a loss of control of assets,
and may necessitate additional fees and time
to settle your estate.
- Anyone who is getting married, having children,
separated, divorced or re-married is advised
to review the current Will as provincial legislation
may affect its provisions and validity.
"Estate planning is much more than
writing your simple or complex Will." concludes
Mastracci, "By concentrating on your personal
objectives, you can establish and maintain personal
estate planning strategies to achieve your unique
needs and desires."
|
