The emergence of COVID-19 has given many the opportunity to take time to contemplate estate planning measures and other end-of-life decisions. While a will is commonly created to take care of our material possessions upon death, an area often overlooked is how things will be managed while we are alive but unable to provide direction. Without proper instruction, there is the potential for family disputes during stressful times. In some cases, a family may have to apply to the provincial government or courts to appoint someone to manage affairs — a potentially lengthy and costly process. As such, the following elements may be considerations as you plan ahead:
Power of Attorney — Do you have a plan in place to support you in the event you are unable to speak for yourself? One of the most important aspects of planning for incapacity is to identify a person(s) you trust to make financial and/or healthcare decisions on your behalf, often called an “attorney”. The name, terms and conditions of the power of attorney document vary by province, but having this document in place generally allows the attorney(s) to make decisions if you cannot act for yourself.
Living Will/Advanced Directive — What kind of care would you want to receive if you were unable to communicate? Our current crisis has led to the question of whether an individual would want to use a ventilator for life support. In provinces where applicable, this document provides specific medical or lifestyle decisions to clearly indicate your wishes and provide guidance to caregivers.
Trusts — If something were to happen to you, would family members need ongoing financial security? In some cases, creating a trust (such as an inter-vivos, or “living” trust) may be helpful in the event of incapacity to help support loved ones.
Other Considerations
Beyond a will and the documentation discussed, there may be other arrangements to consider. Beneficiary designations for registered plans* and life insurance may assist in the distribution of your estate. For assistance in updating beneficiaries, please call the office. The arrangement of assets, such as the use of joint ownership with rights of survivorship,* may help ease the transfer of assets. Life insurance can support tax planning, provide financial security for loved ones or help preserve estate assets.
Estate planning goes well beyond a will. As estate planning is governed by provincial legislation, it is important to consult local legal and estate planning experts. At Optimize, our advisors are ready, competent and prepared to make this process simple.
*Not including Quebec
Financial professionals who want to see how they can map their exit or gain a major competitive edge from Optimize’s next generation multi-family office platform while benefiting from a premium advisor compensation structure should reach out to Matthew McGrath for a confidential discussion at (416)-907-6733 or email matthew.j.mcgrath@optimize.ca.
About The Author: Matthew J. McGrath, Senior Partner, Head of Advisory Channel and Corporate Development at Optimize Wealth Management, has been in the Wealth Management Industry for over 25 years. At the beginning of his career, Matthew started out as a Portfolio Manager at RBC and quickly climbed the ranks to become one of their youngest Executive Council Vice Presidents.
Since making the move to Optimize Wealth Management over ten years ago as a Portfolio Manager, Matthew has become Senior Partner, Head of the Advisory Channel and Corporate Development, who has helped Optimize reshape the investment industry through it’s full service approach, complete transparency and total objectivity. Client’s are provided with a full suite of Financial Services including Comprehensive Wealth Advice, Financial Planning, Investment Management, Tax Preparation, Will/Estate Planning, Mortgage and Insurance Advisory Services. This is all done through a No Load Fee Structure.
As Head of our Advisory Channel, Matthew is now fixated on helping our associates, advisors, portfolio managers, and branch teams to continue to deliver this same exceptional service and premium advice to our clients.