Estate Planning

What are the three main risk management strategies?

Reducing risk, retaining risk, transferring risk.

What happens when someone dies without a will?

The government decides asset distribution, causing delays, fees, and potential family conflicts.

What is a will?

A legal document that explains how your assets should be distributed after death.

Name three key components of a will.

Executor appointment, beneficiary designations, asset distribution instructions.

Why is having a will important?

Ensures wishes are followed, reduces conflict, simplifies probate.

What is a Power of Attorney (POA)?

A legal document allowing someone to make decisions for you if you’re incapacitated.

What does a POA for Property cover?

Financial and legal decisions.

What does a POA for Personal Care cover?

Healthcare and living arrangements.

Why are POAs important?

They ensure your affairs are managed and reduce stress on your family.

Does Canada have an estate tax?

No. Instead, there is a deemed disposition and possible capital gains tax.

What are probate fees?

Provincial fees based on the value of an estate.

Name two strategies to reduce estate taxes.

Gifting assets while alive, setting up trusts.

Why is estate planning important?

Protects beneficiaries, prevents disputes, reduces taxes, supports dependents, and ensures business continuity.

What is reducing risk?

Taking steps to lower the chance or impact of a loss.

What is retaining risk?

Accepting and planning for potential financial losses.

What is transferring risk?

Shifting financial loss to another party, usually through insurance.

Give an example of reducing risk for students.

Installing antivirus software or studying before an exam.

Give an example of retaining risk.

Setting aside money for car maintenance or having an emergency fund.

Give an example of transferring risk.

Buying auto insurance for new drivers.

When should you start estate planning?

As soon as you have assets or dependents.

What life events trigger the need for estate planning?

Mortgage or common-law partnership, having children, buying a home, starting a business, receiving an inheritance, retirement planning.

What is the first step in starting estate planning?

Take inventory of all your assets and liabilities.

What should you identify when planning your estate?

Your beneficiaries and their needs.

What should you consider when making an estate plan?

Your goals and the goals of your beneficiaries.

Which professionals can help with estate planning?

A lawyer (estate laws), financial advisor, and accountant.

What key documents should you draft for an estate plan?

A will and a power of attorney.

How often should you review your estate plan?

Every 3–5 years or after major life changes.