1. Estate Planning Prevents Unintended Beneficiaries
If estate planning was once considered something that only high net worth individuals needed, that’s changed. Nowadays many middle-class families need to plan for when something happens to a family’s breadwinner (or breadwinners). After all, you don’t have to be super rich to do well in the stock market or real estate, both of which produce assets that you’ll want to pass on to your heirs.
Important: If you die without a will, which is a vital part of an estate plan, the courts will decide who gets your assets.
2. It Protects Families With Young Children
To ensure that your children are cared for in a manner of which you approve, you’ll want to name their guardians, in the event that both parents die before they turn 18. Without such a will, the courts will again step in.
3. It Spares Heirs a Big Tax Bite
Estate planning is all about protecting your loved ones, which means in part giving them protection from the Canada Revenue Agency. Essential to estate planning is transferring assets to heirs with an eye toward creating the smallest possible tax burden for them.
4. It Eliminates Family Messes
Stopping fights before they start yet another reason why an estate plan is necessary. This will enable you to choose who controls your finances and assets if you become mentally incapacitated or after you die, will go a long way toward quelling any family strife and ensuring that your assets are handled in the way that you intend them to be.
The Bottom Line
If you want your assets and your loved ones protected when you can no longer do it, you will need an estate plan. Without one your heirs could face huge tax burdens, and the courts could designate how your assets are divided and even who gets to raise your children.