Financial Health and Wellbeing

Any serious financial planning always begins with estate planning. It is important to remember that it's too late to plan your estate when the death occurs. In order to retain and protect your assets, provide comfort and financial security, including leaving a lasting legacy for your family, leave a gift to your favorite charity and achieve all that you want, you should start working on it. It would be wise, at the beginning of this process, to free your mind of any misconceptions that estate planning is only for the wealthy individuals. The truth is, young or old, middle class or wealthy, if you would like to minimize the cost to your estate, regardless of the size, and avoid any unnecessary burden for surviving family members, design your estate plan according to your wishes, which will reduce the erosion of your estate, speed up and simplify the transfer of assets to the next generation, and give you a peace of mind and assurance that beneficiaries are fully protected.

For most of us creation of an estate plan will not be a complicated or tedious process, nor can it be a regret or waste of time for anyone, in any way, but will probably for the first time in your life bring the feeling of comfort and control over secured future of your financial affairs being in order, as they should. In the same way we naturally take care of our physical, mental and spiritual wellbeing, we should do our best to improve and preserve our financial health and wellbeing.

1. Complete a Will and estate planning questionnaire

For starters, complete a Will and estate planning questionnaire which will assist you in deciding what you want your Will to say, and will help your legal council in preparing your Will.

2. Identify your objectives for your estate

When identifying your objectives for your estate make sure you consider both personal and financial objectives that you wish to achieve, and spend enough time to accurately address your objectives, as well as potentially saving you money, since there are many estate objectives for your consideration in creation of an estate plan.

3. Think through your objectives based on your present situation

Once you estate objectives are clearly defined, the next step is to determine how they can be achieved based on your current financial position. In conjunction with your objectives, you will need to consider other factors such as inflation, tax liabilities due to the deemed disposition rules. Inflation is a key issue that must be considered with any long-term planning such as retirement or estate planning. Ignoring the long-term impact of inflation could result in significant hardship for your surviving heirs. Even a modest rate of annual inflation can, over a period of time, significantly reduce beneficiary's spending power.

4. What you need to do to achieve objectives?

The issues just identified in your estate evaluation will determine your action plan. The fundamental component of your action plan will likely be the construction of a Will or, if you currently have a Will, at least a review and update of the document. A significant number of potential issues can be easily resolved through a well constructed Will. For example, tax-planning opportunities such as the use of testamentary trusts and special provisions for beneficiaries can be addressed. It is wise to consult a professional such as a lawyer to assist in this process. Other potential elements of your action plan may include changes in the legal ownership of assets (i.e. the use of Joint Tenancy agreements), the purchase of additional insurance to address estate preservation objectives and possibly the gifting of assets prior to death.

5. Meet with appropriate advisor to Implement plan

At this time you should consult the appropriate advisor to implement the components of your plan. This is crucial to ensuring that your estate plan is properly implemented. During this process you may require the assistance of several professionals, such as: an estate lawyer, notary, accountant, financial planner/advisor, possibly a trust officer. As you seek out these advisors, make sure that you select individuals with solid expertise in estate planning.

6. Review your plan periodically

Finally, every plan in life has to be periodically reviewed and adjusted, to reflect any changes in your personal situation and in legislation. Occasional revisions are essential to ensure your estate plan continues to be in sink with your objectives set earlier.

Before you are start creating your estate plan in accordance with your own goals, objectives and wishes, please consider some of the following questions you should ask potential estate advisors:

1. What degrees or relevant professional designations do you hold?

2. How long have you practiced in the estate planning field?

3. Have you implemented estate plans of complexity similar to my own?

4. How are you getting paid (commission, hourly, flat rate, combination, referral, ...)?

5. What information can I provide to facilitate your implementation of the estate
plan and reduce your work time? (This may save you money, as most advisors
work on an hourly fee)

6. Is there any charge for initial consultation?

Stay focused, determined and positive in taking control of your own financial affairs and taking care of your financial health and wellbeing. Keep in mind the old wisdom that even the longest journey begins with the first step.