Many people consider estate planning as a rich man’s luxury that’s only necessary for people who have vast amounts of properties to give away. In reality, it’s essential to have a plan after your passing, regardless of your age or financial status. Protecting your assets is a lot about ensuring your hard work in this life will carry on to your loved ones after you leave this world. This is why it’s best to avoid any crucial mistakes in preparing for your future.
Why planning for your estate’s future is important
The law generally decides where your division of wealth will go if you don’t have a will. The default outcome is that the court divides it among your spouse and blood relatives. This is the worst scenario for you if you’re particular about who will get what among your assets. Although planning for your passing will be a long and rigorous process, it’s necessary to keep all your belongings in order. If you’re not careful, any minor mistakes you make now can turn into complicated cases in court in the future.
In this article, we will share three estate planning mistakes you should avoid.
1. Don’t rely on only having a will
Although having a will is important, it doesn’t cover specific financial assets like jointly owned properties or businesses. Additionally, it’s not specific on how much your loved ones will pay in capital gains tax before they gain access to your wealth. Your will won’t be enough for these issues and more, which is why it’s best to name a trusted individual to have a power of attorney. This person will execute your will’s specifics, along with the procedures and particulars beyond it.
2. Leaving everything to your loved ones with no restrictions
It’s common for most people to leave their estates with their spouses to ensure that they can survive even after their passing. However, this will be an issue if you want to ensure your children or grandchildren have a share of your assets. If your estate remains under your spouse’s name, they have no legal obligation to pass it on to your other loved ones.
Another potential issue is leaving a massive sum of money to young beneficiaries. Having too much financial responsibility can be a negative experience for a growing child. This is why many people set up a trust for their children’s education to ensure that they go through proper schooling. It locks away their inheritance until they’re of age to be responsible for receiving and handling it adequately.
3. Not having a healthcare proxy
Taking care of your wealth doesn’t just apply to your savings and properties; it also includes your well-being. People who get into serious accidents or develop terminal diseases need to set up precautions to prepare their estate even when they’re incapacitated.
Besides protecting your wealth, you also appoint someone to make legal decisions if you’re no longer capable of making decisions for yourself.
It’s common for people expecting the onset signs of hereditary diseases like Alzheimer’s or Huntington’s to have someone as their healthcare proxy. It’s a role that allows them to ensure that your will remains intact, even on medical matters.
Thinking about your passing can be a dreadful thought, which can be depressing for people who aren’t even close to their senior years. Nevertheless, preparing for the unexpected is better than regretting the things you could have planned for beforehand.
A reliable lawyer can prepare you for the unexpected that your estate’s future will experience without you. If you need an estate planning attorney in Ontario, our trustworthy attorneys can help you out. Contact us today, and our legal experts can give you the peace of mind you need.