FORGE YOUR FUTURE| THE ESSENTIAL GUIDE TO ESTATE PLANNING

Estate planning is a key step in ensuring your assets are managed and distributed according to your wishes. In this blog, we’ll cover what estate planning involves, why it’s essential for protecting your legacy, and how to structure a plan that addresses potential legal and familial challenges. We’ll also discuss the importance of regularly reviewing your estate plan to keep it aligned with your life changes and current laws.

 

What is estate planning, and why is it important?

Estate planning is the process of organizing and managing your assets and liabilities to ensure that your wishes are carried out after your death or in the event of incapacitation. This includes deciding how your assets will be distributed, who will manage your estate, and who will take care of your minor children or dependents.

Estate planning is important because it allows you to have control over your assets and provides clarity and direction for your loved ones during difficult times. Proper estate planning can also minimize tax liabilities, avoid probate, and reduce the potential for disputes among heirs.

What are the primary components of an estate plan?

The primary components of an estate plan typically includes:

• Will: A legal document that outlines how your assets will be distributed and who will care for any minor children.
• Trusts: Legal arrangements that allow you to transfer assets to a trustee to manage and distribute according to your wishes.
• Power of Attorney: A legal document that designates someone to make financial or medical decisions on your behalf if you become incapacitated.
• Beneficiary Designations: Specific instructions on who will receive certain assets, such as life insurance policies or retirement accounts.
• Health Care Directive/Living Will: A document that outlines your preferences for medical treatment if you are unable to make decisions yourself.
• Guardianship Designations: If you have minor children, this designates who will care for them if you are unable to do so.

How do changing laws and regulations impact estate planning strategies?

Changing laws and regulations can have a significant impact on estate planning strategies. Tax laws, inheritance laws, and regulations surrounding trusts and estates can all influence how an estate plan should be structured. For example, changes in tax laws might affect the amount of estate tax your heirs are required to pay, or changes in trust regulations might influence how you structure your trusts to protect your assets. Keeping up to date with legal changes is essential to ensure that your estate plan remains effective and aligns with current laws.

How often should an estate plan be reviewed?

An estate plan should be reviewed regularly to ensure that it reflects your current wishes and circumstances. A good rule of thumb is to review your estate plan every 3 to 5 years or whenever there is a significant life event, such as a marriage, divorce, the birth of a child, the death of a loved one, or changes in your financial situation. Regular reviews help to ensure that your estate plan remains up-to-date and effective.

How can estate planning help in managing potential family conflicts after a person’s passing?

Estate planning can play a crucial role in managing potential family conflicts by clearly outlining your wishes and intentions, leaving less room for interpretation or disputes. By specifying how assets should be distributed, who should act as the executor, and any special provisions for certain family members, you can reduce the likelihood of disagreements. Additionally, discussing your estate plan with your family members ahead of time can help set expectations and provide clarity, further minimizing the potential for conflict. Trusts and other legal arrangements can also be used to control the distribution of assets in a way that aligns with your goals and reduces the chances of disputes.

How can Forge Advisory Group help with estate planning?

Forge Advisory Group is experienced in assisting clients with their estate planning needs. We have access to trusted CIBC and external experts who can support with legal, accounting, banking, or trust services. We recognize that for many people, the idea of planning for your death or incapacity is daunting, it is exceptionally important, and we are sensitive to that. It’s a challenging subject, but we offer our experience and resources to assist our clients in navigating their estate planning needs.

 

Reach out to us @mailbox.forgeadvisorygroup@cibc.com schedule a consultation to start developing your personalized estate plan.

 

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. CIBC and CIBC World Markets Inc., their affiliates, directors, officers and employees may buy, sell, or hold a position in securities of a company mentioned herein, its affiliates or subsidiaries, and may also perform financial advisory services, investment banking or other services for, or have lending or other credit relationships with the same. CIBC World Markets Inc. and its representatives will receive sales commissions and/or a spread between bid and ask prices if you purchase, sell or hold the securities referred to above. © CIBC World Markets Inc. 2024.

 

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B.K. Milne and Bruce Szarka are Investment Advisors with CIBC Wood Gundy

 

Clients are advised to seek advice regarding their particular circumstances from their personal tax and legal advisors