Estate Planning

What is Estate Planning

Estate planning is the process of anticipating and arranging for the disposal of an estate during a person's life. Estate planning typically attempts to eliminate uncertainties over the administration of a probate and maximize the value of the estate by reducing taxes and other expenses. However, the ultimate goal of estate plan is determined by the specific goals of the client and may be as simple or complex as the client's needs dictate. Guardians are often designated for minor children and beneficiaries in incapacity.

Importance of a Will

A Will allows you to choose the executor who will administer your estate. If you die without a Will, the Court will select a person to fill this position. The Court appointee may well not be the person you would prefer.
A Will allows you to select the beneficiaries of your estate. If you die without a Will, the beneficiaries will be determined in accordance with provincial legislation. They will generally be family members determined by closeness of relationship and their shares of your estate may be different from what you would have preferred.
If you die without a Will and there are children entitled to share your estate who are under the age of majority, the Court appointed administrator of your estate is required to pay a child's share into Court or to a Government Official until the child attains the age of majority. This can result in delays and expense, whereas with a properly drafted Will, the money could be readily used for the benefit of the child.
A Will is effective from the time of death and the executor may deal with the estate immediately. If you die without a Will, the administrator has no authority until the Court appointment. This results in a period after the time of death during which no one has legal authority to deal with your estate.
A Will allows you to undertake tax a family planning for the overall benefit of your family. Without a Will, you do not have the flexibility to consider and deal with the various needs of your family members and to attempt to minimize the tax consequences of death.
Generally, it is more expensive to administer an estate if there is no Will. Thus, there may be additional legal costs involved in appointing an administrator. In some circumstances, the Administrator may be required to post a bond to guarantee performance.