Make Estate Planning Your First Step after Divorce

Monday, July 6th, 2009

The last thing that people want to do after a divorce is to consult another attorney.  But regardless of your age and whether you have kids or not, it’s important to consult legal and financial experts to ensure that your financial plans and estate are updated in terms of reflecting your new circumstances.

So if you’re not working with an estate planning attorney or financial consultant during your divorce, it’s time for you to do it now.  A financial planner will look at your finances. Your expenses as a new single individual can grow unexpectedly; a financial planning professional helps you compare strategies and review your new savings and spending needs.

Also, talk with an attorney that has numerous experiences in real estate.  If you plan to remarry one day and you have kids, make sure that your specific assets will go to them (guaranteed) when you die.  This is because some cases happen when the ex-spouse may automatically gain full control of assets earmarked for your kids.  Of course you don’t want this to happen - that’s why you must plan for it legally.

If your children are still minors, it would also be wise to plan the guardianship for them.  Especially when there are wealth issues that’ll only become effective when they reach adulthood, it’s critical to establish a solid and efficient legal structure to distribute those assets.

Tags: attorney, Divorce, estate, Estate Planning, estate planning attorney, experts, financial, financial planner, legal, minors, plans
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60% of Canadians Don’t Have Wills

Saturday, June 27th, 2009

The chance of catching a fire in your house is only one-in-230; but people are lining up to get property insurance, just to be sure.  Meanwhile, the odds of death are one-in-one; despite this, over 60% of Canadians do not have a will or even a comprehensive estate plan.  This is according to Society of Trust & Estate Practitioners.

Maybe it’s an issue of facing mortality or not wanting to place a burden to the family.  Most of the time, people don’t see any immediate benefit of planning for the estate, or sometimes, they just don’t know where to start.

Everyone should make a will, regardless of your wealth.  An estate is everything you own - this includes property, investments, and real estate.  At the same time, it also includes all the debts you owe.

The objective of most people is to make sure that their family is financially secure when they die (though in some cases, beneficiaries may also include charities or non-family members).  So an effective “will” does not only make sure that it states clearly who should get what, but rather, distributes the assets tax-effectively and efficiently.  It’s also critical that your assets are managed before you are incapacitated or ill.

The first step would be to pull together a team of experts to guide you.  It’s recommended that you include a financial adviser, tax professional, and a lawyer, who can be your overall coordinator.

Tags: debts, estate, estate plan, experts, financial adviser, investment, lawyer, property, real estate, tax professional, wealth, will
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