8 Simple Steps to Prepare your Estate

21 Nov 8 Simple Steps to Prepare your Estate

Less than one quarter of Canadians under 35 has a will.[1] This is especially shocking, considering that it is during these years that young professionals begin to get married, have children and buy property.

Often the problem is that planning an estate seems daunting. Despite that, it’s important to put something together, even if it’s just a basic plan. The plan can evolve over time and become more complicated. But it will be easier to do that – even if you think you’re too young – rather than waiting for another decade and trying to create a whole plan from scratch.

Follow these simple steps to prepare your estate:

1. Gather important documents and contact information. Consider the assets you own and the people you love. Collect any documentation related to real estate, accounts and insurance policies. Make a list of contact information for financial advisors as well as family members.
2. Execute a last will and testament. Your will details your plans and wishes for your estate after your death, including naming an executor to take care of distributing your estate and a legal guardian for your children. If you neglect to make a will, the province will appoint people to those roles – and you can’t assume the province will make the same decisions you would have made.
3. Update beneficiaries. You may already have life insurance, an RRSP or pension, or another account with a designated beneficiary. It’s critical to ensure those beneficiaries are up to date, as those assets pass outside your will and won’t be subject to any updates to the will.
4. Secure digital assets. This is a newer category with far-reaching implications. Digital assets include online banking and shopping accounts as well as social media accounts. It’s a good idea to make a list of all user IDs and passwords, so your executor can access your accounts and take care of them. You may want to make special arrangements regarding your wishes for online activities, including websites or blogs.
5. Plan final arrangements. Your final arrangements include funeral plans as well as organ donation. In particular, your wishes for final arrangements should be clear to your executor from the moment you execute your plans, as your will likely won’t be read until after your funeral and a grieving family member or friend may struggle to make these arrangements without clear guidance.
6. Make copies and store. Your will usually resides with your lawyer or another professional assisting you with your estate plan. It’s a good idea to make copies of your plan and keep them in a safe place, likely in your home and with your executor.
7. Talk with your loved ones. Take the opportunity to share your wishes with your loved ones. When they understand what you want, they are more likely to set those things in motion – and less likely to fight about it with other family members.
8. Revise, revise, revise. Putting together an estate plan is a great start! But nothing is more constant than change. A big life change, such as a marriage or a birth, should trigger an opportunity to reconsider your plan. Most advisors suggest revisiting your plan every three to five years – or even annually – to make sure you’re still happy with the plan.

You don’t have to put together a complicated estate plan all at once. Sometimes starting simple is the best way. When you revisit the plan in a few years, you can set up something more complicated if your situation warrants the change. Working with an advisor can help you determine the right path for you.

To learn more about preparing your estate, contact us.

[1] https://www.canada.ca/en/financial-consumer-agency/programs/research/canadian-financial-capability-survey-2019.html#toc6

Joel Rose

With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.