What is Estate Planning?
Have you ever questioned what will happen to your property upon your death or how it will be managed in the event that you become incapable of handling your own affairs? If yes, preparing a will and planning your estate is the route you should take to put these speculations to rest.
Estate planning involves determining what happens to your property upon your death or in the event that you become incapable of dealing with your affairs. Estate includes your assets, possessions, and money. An estate plan consists of a few legal documents stipulating your wishes upon your death or incapability regarding how you want your estate, financial affairs, and health wishes to be managed. These include:
Wills: A Will is created to ensure that your property is distributed according to your wishes on your death. A Will also specifies the person who will administer your estate, known as an executor. Having appointed an executor saves the cost of having a family member make an application to court to be appointed administrator of your estate. In addition, if you have children, your Will can specify who their guardian will be.
Power of Attorney: A Power of Attorney gives a person of your choice the authority to act on your behalf on legal and financial matters. An enduring Power of Attorney gives your Attorney the authority to manage your affairs beyond the point that you are no longer capable of managing your affairs.
Representation Agreement: A representation agreement gives a person of your choice the power to represent you in health or personal care decisions, or to manage your financial affairs in the event that you become incapacitated. We recommend that you use a Representation Agreement to appoint a representative for health and personal decisions only as your financial affairs can be dealt via a Power of Attorney.
Advance Directive: An Advance Directive specifies your wishes regarding health care in the event that you become incapable of providing these yourself. This document also indicates your preferences regarding treatment if you are faced with serious illness or accident.
How to Plan Your Estate – Estate Planning Checklist
- Decide who your executor, a person who administers the Will, is going to be
- Figure out how your estate will be distributed and who it will be distributed to
- If you wish to make any cash gifts or charitable gifts, decide who the recipient will be
- If you have a minor child, you may wish to appoint a guardian for your child in your Will
- Mention any funeral wishes in your will (cremation or burial arrangements)
- Decide who you will name as your attorney for a Power of Attorney (the term ‘Attorney’ is not to be confused with a lawyer)
- Decide the person you will name as a Representative in your Representation Agreement
Estate Planning Attorney
If you are unsure about where to begin in the estate planning process, book a consultation here with Mark O’Nions. Mr. O’Nions has the expertise and knowledge to help you develop a comprehensive estate plan that meets your goals and objectives.
We hope this article helps answer your questions about how to make an Estate Plan. Should you have any questions or require help with drafting a will or estate planning documents, please contact us at 604-449-7779.