Estate planning after a major life event

Estate planning is one of those things many people put off. It can feel unnecessary when life is going well, and there is always something else that seems more urgent.

But estate planning is not just about what happens after you die. It is also about making sure someone you trust can make important decisions for you if you become unable to make them yourself, and making your wishes clear for the people who may have to navigate difficult decisions on your behalf.

Whether you are putting an estate plan in place for the first time or reviewing documents you signed years ago, there are a few key areas you should consider.

The essential documents

For most people in Ontario, a basic estate plan should include a Will and Powers of Attorney.

Your Will sets out what you want to happen to your estate after your death. It can:

• Name the person you want to administer your estate

• Identify who should receive your assets

• Set out your wishes for personal belongings and other property

• Name guardians for minor children

• Include provisions for children or other beneficiaries who may need additional protection or support

Your Powers of Attorney deal with decisions during your lifetime.

A Continuing Power of Attorney for Property allows someone you trust to manage your financial and property matters if you are unable to do so yourself.

A Power of Attorney for Personal Care allows someone you trust to make personal care decisions on your behalf if you are incapable of making those decisions yourself.

These documents are particularly important because without them, your family may face additional legal steps at a time when they are already dealing with a difficult situation.

Your estate plan should reflect your actual life

There is no one estate plan that works for everyone. Your family structure, your assets, your relationships, and your wishes all matter. For example, your planning may need to take into account:

• A spouse or common law partner

• Children from a current or previous relationship

• Minor children

• A blended family

• Property or other assets outside Ontario

• A business or professional practice

• Life insurance and registered accounts

• Significant debts or financial obligations

• A beneficiary who may require additional support or protection

This is why using a generic Will template may not address the issues that matter most to you.

When should you review your estate plan?

Estate planning is not a one time exercise. Certain life events should prompt you to review your documents, including:

• Marriage, separation, or divorce

• The birth or adoption of a child

• A significant change in your financial circumstances

• Buying or selling a home or other significant property

• Starting or selling a business

• The death of an executor, attorney, or beneficiary

• A significant change in your relationship with someone named in your documents

Even if nothing major has changed, it is worth reviewing your estate plan periodically to make sure it still reflects your wishes.

Don't forget about beneficiary designations

Your Will is only one part of your overall estate plan. Some assets, including certain life insurance policies and registered accounts, may pass directly to a named beneficiary rather than through your estate. That means it is important to review your beneficiary designations alongside your Will. An outdated designation can create consequences that you may not have intended.

Think about the practical details too

Good estate planning is not only about deciding who gets what. It is also about making things easier for the people who may have to deal with your affairs.

Consider keeping an organized record of important information, such as your financial institutions, insurance policies, property information, and other significant assets. You should also make sure the people you have appointed know that they have been named and understand where your important documents can be found.

You do not need to have every detail figured out before speaking with a lawyer. In fact, that is often part of the purpose of the conversation.

Getting started

Estate planning can feel overwhelming when you think about everything at once. It does not have to be. Start by thinking about three basic questions:

• Who should manage my affairs if I cannot?

• What do I want to happen to my estate when I die?

• Who do I trust to carry out those wishes?

From there, a lawyer can help you identify the issues that apply to your particular circumstances and put the appropriate documents in place.

At Vatan Law, estate planning is about more than preparing documents. It is about understanding your family, your priorities, and the things that matter to you, then putting a plan in place that reflects them.