Planning an estate goes beyond drafting a will. Ensure your wishes are honoured and minimize the financial burden on your family by organizing your legacy, with 5 simple steps.
Keep Your Will Updated
A will outlines your wishes for your asset distribution. Review and update it regularly, especially after major life changes like marriage, divorce, or the birth of children.
Review Life Insurance Coverage
Life insurance plays an important part in estate planning. Ensure your beneficiaries are up to date as the policy provides a tax-free payout that can help your family manage the financial impact of your passing.
Strategic Beneficiary Designations
Name beneficiaries for as many assets as possible; life insurance, segregated funds, and registered accounts (RRSPs & RRIFs) all can have beneficiary designations. This ensures these assets bypass probate and transfer directly to your heirs.
Name Your Spouse as a Beneficiary
Designating your spouse as the beneficiary of your RRSPs, RIFFs, or TFSAs can offer substantial benefits. It allows for tax-free transfer to the surviving spouse while avoiding a tax bill on your estate.
Deferred Tax Account
If your spouse has passed away before your, deferred taxes may become payable upon your death. Life insurance is an invaluable tool to address this issue and cover the taxes.
By regularly reviewing your will, insurance, and beneficiary designations, you can ensure a smoother estate transfer, providing your loved ones with financial security.
Reach out to Denis at DPB Insurance today to ensure your wealth transfer plan is in order.