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Estate planning 101 Thumbnail

Estate planning 101

The freedom to protect your legacy and loved ones the way you want.


Estate planning isn’t just for the affluent – it’s for all those who want to protect the people they love and the assets they’ve worked so hard to build. In simple terms, estate planning is the process of arranging for the legal disposition and administration of assets after death. Assets can include anything from real estate or a business, to bank accounts, investments and personal belongings. Estate planning can help minimize fees and taxes, provide for loved ones, establish a guardian for dependants, set up inheritances and more. And as a person’s life progresses and financial goals change, so does the plan.

Here are some ways an estate plan can help make life easier at a difficult time.

Name a guardian for children

For parents with young families, a valid will enables them to identify a guardian for their children in the event both parents are no longer able to care for them. Without a will documenting this decision, the choice of who will raise minor children falls to the courts.

Handle an estate according to wishes and intentions

An estate plan is the only way for Canadians to control how they will leave their money, assets and property after they pass away. It provides an opportunity to determine who will administer the estate, who the beneficiaries will be and how assets will be distributed.

Minimize expenses and income tax liability

Estate planning is an effective method for reducing or eliminating probate fees.[1] Probate is the legal process in which a will is validated by the courts, and fees vary by province or territory.[2] Certain options (such as trusts, joint ownership, life insurance products, pension plans and RRSPs) help avoid probate because proceeds pass outside of the estate.

From a tax perspective, a person’s assets are deemed disposed of at death, which may result in the estate owing income tax, however, opportunities exist to defer or reduce this tax liability.

Offer protection in a situation of incapacity

While incapacity is often associated with later life, it could occur at any age (for example, due to an accident or medical situation). Naming a power of attorney – for financial affairs and health care decisions – is crucial to help ensure finances and intentions are effectively managed in the event of incapacity.

Each estate plan is as unique as its owner and will change over time, but it is never too early to put one in place. To understand the various aspects of estate planning, speak with your advisor today. We can connect you with experienced legal and accounting professionals who can help you create an estate plan that is right for you and your family. 

Peter B Fraser CFP®CIM®
Investment Advisor, Manulife Securities Incorporated
Life Insurance Advisor, Cardinal Planning.
peter.fraser@manulifesecurities.ca
Wade Bedard CIM®
Investment Advisor, Manulife Securities Incorporated
Life Insurance Advisor, Cardinal Planning.

wade.bedard@manulifesecurities.ca

© 2019 Manulife. The persons and situations depicted are fictional and their resemblance to anyone living or dead is purely coincidental. This media is for information purposes only and is not intended to provide specific financial, tax, legal, accounting or other advice and should not be relied upon in that regard. Many of the issues discussed will vary by province. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation. E & O E. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Any amount that is allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value.

This publication contains opinions of the writer and may not reflect opinions of Manulife Securities Incorporated.  The information contained herein was obtained from sources believed to be reliable, but no representation, or warranty, express or implied, is made by the writer or Peter Fraser or Wade Bedard or Manulife Securities Incorporated or any other person as to its accuracy, completeness or correctness. This publication is not an offer to sell or a solicitation of an offer to buy any of the securities. The securities discussed in this publication may not be eligible for sale in some jurisdictions. If you are not a Canadian resident, this report should not have been delivered to you. This publication is not meant to provide legal or account advice. As each situation is different you should consult your own professional Advisors for advice based on your specific circumstances.

[1] In Quebec probate, or verification, is not applicable for notarial wills.