4 Estate Planning Keys No Matter Your Age

You might hear the word estate planning get thrown around. What does this mean? Does it affect me? Should I care?

Think of who is most important to you.

What if estate planning was phrased as:

• Ensuring your loved ones are taken care of
• Reducing stress for those around you when you pass away
• Making sure your wishes are passed along

Count me on board with making sure these items are taken care of for my family.

So no matter your age, here are 4 key estate planning topics that you should pay attention to.

1) Beneficiary Designations

Keeping beneficiary designations current is a fundamental aspect of estate planning. There are a variety of places that you can name a beneficiary:

• Registered accounts like TFSAs and RRSPs
• Life insurance
• Group savings or pensions

Ensuring your beneficiaries are up to date makes the distribution process simple, bypasses probate, and provides a more efficient transfer to your intended recipients.

2) Documentation

There are some key documents that direct your wishes during and at the end of your life. Having these in place, and accurate, will help carry out your desires.

Will and Testament - A will is the cornerstone of an estate plan. A will allows you to specify how your assets should be distributed and who should be entrusted with the responsibility of carrying out your wishes. Within your will, you can address important matters such as the guardianship of minor children and the appointment of an executor. I believe that everyone should have a will.

Power of Attorney - Designating a power of attorney is a proactive step to handle financial and legal matters if you become incapacitated. This document empowers someone you trust to make decisions on your behalf, ensuring your affairs are managed according to your preferences during a time when you might be incapable.

3) Managing risk

Part of estate planning is ensuring that your loved ones would be taken care of if you were to pass away. Having adequate and suitable insurance coverage is a cornerstone of risk management.

For example, life insurance can provide financial security for your loved ones. Take a family with young children. Losing an income or spouse could be financially devastating. Understanding your financial position and needs, while potentially using insurance to cover the risk is a key part of ensuring your estate is in place.

4) Charitable giving

As mentioned above, your estate is a chance to communicate your final wishes. For those so inclined, consider incorporating charitable giving into your plan.

There are many options for this, including direct gifts, gifts through your will, gifts of life insurance, or naming charities as beneficiaries.

Contributing to causes you care about can be a fulfilling aspect of your legacy.

The items listed above are simple, but intentionally so as I believe them to be estate basics that everyone should take care of. There are much more complex strategies available, and suitable in the right situation.

Review your estate plan over time, especially after significant life events. Think about how marriage, kids, divorce, and death would impact the items above. Estate planning is a dynamic process that evolves with life's changes.

Seeking professional guidance from legal and financial experts ensures that your estate plan is comprehensive and legally sound, providing you and your loved ones with peace of mind.

Lastly, estate planning is not solely about managing wealth—it's about leaving a legacy that reflects your values and provides for the well-being of those you care about. By addressing documentation, beneficiary designations, risk management, and charitable giving, you can take significant strides to ensure a seamless process should you pass away.

For this and more, check out my newsletter. Click the link here or in my bio to learn more.