Your Assets (including digital)

 

 

Monetary Assets, Sentimental Assets and Digital Assets   What should you include in your Last Will and Testament and Power of Attorney documents?   For years, you have heard that you need the following documents: Power of Attorney for Personal Care Power of Attorney for Property Last Will and Testament Through the Power of Attorney documents, you grant the ability of a named alternate to make decisions on your behalf should you not be capable of making them while you are alive. Information about these documents can be found on the Government of Ontario website.     Your Last Will and Testament is a written document that sets out your wishes about how your estate should be taken care of and distributed after your death. It takes effect when you die. The Government of Ontario website is a great resource.     Traditionally, Power of Attorney for Property and Last Wills and Testament only dealt with real assets. What if you only do electronic banking or get all of your bills each month as e-bills or you have a Netflix or other monthly electronic subscription?   I don't know about you, but I inherited a box of family photos when my parents died. Most of my photos are stored electronically - either on a hard drive or in the cloud. I also have Facebook, LinkedIn, Twitter accounts, a web site, and many other online footprints.   Can the person that you name as Power of Attorney for Property or Executor of your Will access all of these accounts? Do they have access to all of your Usernames and Passwords? Do they know if you want these accounts closed or maintained?                                                                                                      To ensure that you have the proper documentation, you should consult with an attorney and ensure that all of your documentation is up to date.   For more information, you may want to check out this article on the Manulife web site put together by their Tax, Retirement and Estate Planning Services Group.

Your Legacy

Your legacy is more than a bank balance. It's the impact you make on your community and your family. Here are six tips for turning a nice thought into a powerful reality:

1) Get Organized - Ensure your personal information - bank account and investment contract numbers, insurance policies, tax information, etc. - are up to date and stored somewhere safe and accessible by your advisor, attorney, beneficiaries or family members.

2) Check your Will - Make sure you have a will and it reflects your current intentions. Do the same with any power of attorney or other legal documents. If you don't have a will, or need to change it, contact me or someone you trust to obtain the name of an estate lawyer ho can help draft yours.

3)  Name Names - Select an executor for your estate and ensure that all beneficiary designations complement those outlined within your will.   

4) Consolidate your Finances - Streamline your investments and bank accounts to simplify administration. Having joint accounts makes it easier to ensure resources are readily available.

5)  Minimize Taxes - Consider investments and strategies that allow your estate to bypass probate and minimize the tax bill for the next generation.

6) Discuss your Plans with your Family - Keeping them informed can help them understand your decisions.    

Over time, situations change.  Your children become adults, tax laws change, your executor ages.  It is important to review your plans every few years to ensure that they are still appropriate. 
 

Virtual Shoebox 

 

The Canadian Life and Health Insurance Association Inc. has developed an extensive Virtual Shoebox. It is a document that encompasses an inventory of all of your personal and household financial information.   If you have ever had to go through someone else's documentation after they became sick or died - you would make sure that you kept a document like this up to date.   You can get the form on line (click here) or I can get you a hard copy (if you prefer). Just send me an email with your mailing address and I'll send it off to you.