Estate planning. It’s just gotta be done.
Why, you might ask? Well, it’s critical for the protection of yourself and your loved ones, and to ensure that your assets are distributed as you would like them to be.
Background
I haven’t done mine yet. And I am a full on grown up. This is not my proudest moment, trust me. And do you want to know the worst part? I have preached the message of responsibility through having a will. Yes, indeedy. Around five years ago, I gave a little speech at a senior’s banquet, outlining the importance of having a will. The speech was entitled ” With Intention Leave your Legacy” (See what I did there?).
I still didn’t do mine.
Then, most recently, I worked closely with older family members for more than two years to get will completed. Because it’s important, right?! Because do you know what kind of mess you’ll leave behind when you die and you don’t have a will??!
Physician, heal thyself.
But I’m here now, taking care of business and I wanted to let you know that if you still need to tackle this, you are not alone. Join in here and we can tackle it together.
What is the difference between a will and an estate plan?
An estate is everything you own or owe at the time of your death. While there are no estate taxes in Canada, most provinces charge fees to process (or probate) your Will—and these fees are based on the amount of your assets.
Estate planning may help reduce these fees and the taxes owed. A financial planner will help you understand what makes sense for you and work with your legal and tax advisors to customize your plan.
taken from rbcfinancialplanning.com
In short, estate planning involves a will and other documents that serve to protect you, your family and your assets while you are alive and may be incapacitated. A will takes care of things once you have passed.
Start your estate planning: Last Will and Testament a.k.a. Will
I was curious as to how many of us are out there, hiding in the shadows, furtively avoiding the admission of the Not-Yet-Done.
In need of the straight goods, I went to Statistics Canada to get the deets. And the search results did not let me down.
When you have a few minutes, feel free to check out this report: Canadians and their Money: Key Findings from the 2019 Canadian Financial Capability Survey. Produced by the Financial Consumer Agency of Canada, it paints an interesting picture regarding our behavior, abilities and knowledge as Canadians regarding financial decision- making.
Although I’m keen on estate planning writ large, my immediate focus is in learning more about wills; specifically, how many of us have our stuff well looked after. In teacher-speak, I can report: There is room for growth.
Financial Consumer Agency of Canada, November 2019, page vExcerpt from Canadians and their Money: Key Findings from the 2019 Canadian Financial Capability Survey
“In terms of estate planning, about half of Canadians (55%) have a will and 40% have powers of attorney drawn up. For Canadians under age 35, the challenge seems to be creating an estate plan in the first place, since only 22% have a will and only 9% have drawn up powers of attorney. Addressing this financial gap is especially important for those who have children or other financial dependents. For Canadians aged 65 and older, the bigger challenge may be ensuring that their estate plan is up to date. While the overwhelming majority of Canadians aged 65 and older have wills (95%) and have designated powers of attorney (68%), more than half have not updated their wills (53%) or powers of attorney (57%) in the last 5 years. This is a concern because some may have a will or power of attorney that no longer reflects their wishes”
So, we’ve heard about those under 35 yrs, and those 65 yrs and older. Ummm… what about the rest of us? Those of us who are in the exciting and challenging middle i.e., not young, not old; experienced, with so much to give, but still so much to learn. Those of us who are holding down that 9 to 5 while keeping an eye on the retirement prize. What of us, pray tell?
According to the data, the following figures represent the percentage of Canadians that have a will and have updated it within the past 5 years, by age group.
| Age Range | Have a will | Updated their will within the past 5 years |
|---|---|---|
| 18 to 34 yrs | 22% | 18% |
| 35 to 54 yrs | 47% | 25% |
| 55 to 64 yrs | 77% | 46% |
| 65 yrs and older | 92% | 53% |
It would seem that the older we get, the more likely we are to have a will. Creeping ever closer to the Big Day will do that to you. But we never know when that day will come, and old age is certainly no pre requisite. So…
Estate planning: 4 powerful reasons to get it done!
Here’s what I can underline as 4 powerful reasons to just get it done.
- You want all of the assets that you worked so hard for to go precisely where you want them to go, with taxes optimized.
- You are keen on being prepared and able to manage both the anticipated and the surprising with relatively lower levels of stress.
- You recognize this as an opportunity for your people to be proud of you for being responsible enough to be responsible.
- You get to be on the right side of the stats. Which means, you win. That’s reason enough for me.
looking good, winner!!
Do you want to be on the team that can casually say ” Absolutely, I have a will! Mais oui, bien sûr !” And then, once you do that, you get to keep winning by joining the team that has “Updated their will within the past 5 years”. Easy wins, great for bragging rights at parties, am I right?
