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Estate Planning

Why is Estate Planning Important?

First, Estate planning is not just for the wealthy.

“Estate planning is an important and everlasting gift you can give your family. And setting up a smooth inheritance isn’t as hard as you might think”

Suze Orman

If a family member dies without a will, the province takes control of the estate to decide how the assets are to be distributed.

“Only put off until tomorrow what you are willing to die having left undone.”

Pablo Picasso

Even for smaller estates, the costs and delays of probate can have devastating consequences. The goal of estate planning is to arrange your financial affairs in a way so that your assets can be passed to your heirs as quickly and as completely as possible. Probate costs and delays create additional hardships at an already emotionally challenging time.

The good news for Canadians is that there are ways to avoid the probate tax on an estate.

The bad news; however, is that depending on the type of assets in an estate there may be “deemed disposition tax” that could seriously disrupt the financial lives of your surviving family.

Properly planned estates have assets arranged and titled in such a way as to minimize any taxes payable. Estate planning tools such as trusts are often employed to reduce the exposure to taxes.

Estate planning is not just planning for death; it is also essential to ensure that your affairs are handled in accordance with your wishes while you are alive.

Should you become mentally or physically incapacitated and unable to manage your own affairs, tools such as a power of attorney become important life planning tools.

KLT Wealth Management can provide you with the guidance by organizing your financial information and assisting you to determine your goals and objectives.

“By failing to prepare, you are preparing to fail”

Benjamin Franklin

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© 2022
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