Estate Planning

Not too many of us own an estate but all of us have an estate.

An estate is comprised of all of the assets that you own and will pass on to your family and friends (who are called “beneficiaries) after you pass on. After a lifetime of building your estate, it is important that you “protect” your estate against tax to every extent possible rather than have the majority of it taxed away upon your death. Estate planning is the process that helps your prevent this from happening.

Estate planning helps you accomplish the following:

• Make sure that a beneficiary has been identified for all RRSPs, Pension Plan funds and Life Insurance policies, and that they are updated if need be.
• Ensure that jointly held assets (e.g. your house) would pass to the joint owner without probate fees. If the joint owner is your spouse, this transfer can take place tax-free.
• Ensure that an updated, legal will is maintained. This is extremely important because it will ensure that your assets are passed on to your intended beneficiaries in the most cost effective and timely manner.
• Ensure that an appropriate Power of Attorney document is in place so that a person that you trust will act on your behalf to manage your financial affairs if you become incapacitated and unable to manage your own financial affairs.

For more information on Estate Planning, click on How much life insurance do I need?   This is a user-friendly tool that provides easy to understand terminology. If you want personal advice, contact our Certified Financial Planner, Barbara Dalzell, CFP, FMA at barbarad@policecu.mb.ca  or by phone at 926-3141.