The start to any building is its foundation and when relating to a financial plan we want to start with Wills and Power of Attorney. Now understand this is not legal advice, but simply financial advice on how to protect your family and your assets.
What is a Will? Quite simply, a will is a document that will
set out your wishes for how you would like things distributed and taken care of
after you die. And within this will, your
things are referred to as your estate, which means a person’s property and
assets. These will be passed on to beneficiaries
through a trustee, which will be named by you.
Now let’s complicate things a bit. Wills set out how we allocate our assets upon
death, but what about if we are still alive?
A Power of Attorney is set up to make decisions when we are not capable
or able to make them. Most commonly,
these decisions are regarding:
- Property: decisions regarding property and assets
- Personal Care: health care decisions
- When I die my property and assets will need to allocated.
- When I can no longer make decisions regarding my property and assets I will need someone to do so.
- When I cannot make health decisions pertaining to myself I will need someone to do so.
Laws that are set out in Ontario to deal with the death of
an individual and their property are very restrictive to the families of those
who did not have a will. In such cases,
the government decides through legislation how your property and assets will be
allocated. Perhaps more alarming, may be
that they will also decide on how your children will be cared for.
To summarize, without a will you lose all control on how
your wishes may be carried out upon your death.
Who cares for your children? How
will your property and assets be inherited?
These questions are open for debate.
Without a will loved ones may go without financial help while an estate
undergoes review. It opens the door for
challenges as to the best interest of the children. All the while your hard earned dollars
(estate) is depleted by administrative and legal costs.
So, no will? Please
talk with your significant other and loved ones as to how you wish and plan
things to benefit loved ones who are left behind.
Tim Ernst, BBA
Financial Advisor
94 Bridgeport Rd E
Waterloo, On N2J 2J9
