By Cardinal Point Wealth
February 24th, 2023
An estate plan is an arrangement of your financial affairs designed to accomplish several essential financial objectives, both during your lifetime and upon your death. The plan should accomplish the following goals:
- Protect your assets
- Provide tax-efficient income during your lifetime, before and after retirement
- Provide tax-efficient dependant support after your death
- Provide tax-efficient transfer of your wealth
Effectively communicating your estate plans to those who need to know them is vital. Otherwise, those wishes may remain unclear or completely unknown. Setting up a reliable communication plan is therefore a very important part of overall estate planning. That includes communicating proactively with the executor of your estate, your healthcare Power of Attorney, and those you select to oversee the disbursement of your wealth and other assets.
Wills and Powers of Attorney are the most common documents used to outline and convey your estate plan. They should be drafted in your jurisdiction of legal residence and reviewed at least every five years − or whenever a major material change in your life occurs. Notify those you appoint to perform important functions – such as the executor of your estate. Ensure that they fully understand their responsibilities and agree to do what is asked of them. Keep in mind that even your spouse may not have the legal authority to take charge of such responsibilities, unless you specifically authorize them to do so…
Involving your attorneys, financial advisors, and tax planners in these matters is crucial.
