Estate planning is one of the greatest gifts you can give your loved ones. With the start of a new year, it’s the perfect time to tackle items you may have been putting off, including creating or updating your estate plan.
If you’ve already taken the time to create an estate plan, congratulations on prioritizing yourself and your family. If not, let’s make 2025 the year you finally check this essential task off your list.
Here are some of the most common estate planning mistakes and tips on how to avoid them.
Neglecting Important Life Updates
A will is not a set-it-and-forget-it document. It should be updated after every major life change. Key events such as having a child, welcoming a grandchild, getting married, getting divorced, or purchasing a new property are prime times to revisit your estate plan.
According to the 2019 Canadian Financial Capability Survey as highlighted by The Globe and Mail, only 22% of Canadians under the age of 35 have a will. Even among Canadians aged 65 and older, 53% haven’t updated their will in over five years.
Life circumstances can change significantly in that time. At McMurter & Associates, we recommend consulting an estate lawyer every three years to ensure your will and estate plan reflect your current wishes.
Failing to Name Beneficiaries in your Estate Plan
Naming beneficiaries is a direct way to control your assets.
By naming a beneficiary, they can skip the probate process in Ontario while the rest of your estate must go through probate. We write more about the probate process here. Assets in your will are subject to Estate Administration Tax through probate.
The Financial Post lists common assets we recommend naming a beneficiary. These include registered investment plans, tax-free savings accounts (TFSAs), pensions and life insurance. If no individual is named, the designated asset is payable to your estate which will be controlled by your will.
While having a will is crucial, naming beneficiaries on the appropriate accounts adds another layer of security and efficiency to your estate plan.
Failing to Plan for Incapacity
Life is unpredictable, and planning for the unexpected is an essential part of estate planning. Power of Attorney (POA) directives can safeguard your interests if you become unable to make decisions for yourself. There are two primary types of POA:
- Continuing power of attorney for property:This gives a person the authority to make financial decisions on your behalf.
- Power of attorney for personal care: This gives a person the authority to make decisions about your personal care, including health care, nutrition, housing and consent to medical treatment. It comes into effect only when you are mentally incapable of making these decisions on your own.
POA directives are typically prepared alongside your will as part of a comprehensive estate plan. By clearly outlining your wishes, you ensure that your decisions are respected, even if you cannot make them yourself.
Next Steps
Selecting an experienced estate lawyer is one of the best steps you can take to protect your legacy and provide peace of mind for your loved ones. Clear communication with family members and others affected by your estate plan is equally important to reduce misunderstandings and prevent disputes.
Simply put, not having an estate plan can make a difficult time even harder for your loved ones as they navigate your loss.
Our fee structure is transparent and listed on our website. If you have questions about your will or estate plan, we invite you to speak with one of our experienced lawyers. We’re here to help you make informed decisions and create a plan that works for you and your family.
McMurter & Associates is here to help
At McMurter & Associates, we’re here to help with your estate planning needs. Contact us today to schedule an appointment.
To meet with a member of our firm, send us an email or call us at 1-800-756-7138 or 289-278-0934 to schedule a consultation.