Estate Planning

Strategies for Headache-Free Estates

By Hull & Hull LLP

A recent article in the Financial Post, 'Eight Tips for Feud-Free Estate Plans', provides helpful advice on how to minimize family-infighting over one's estate (or retirement) plan. 

The article is a must-read for anyone planning for the future as well as those who advise them. 

Here are a few of the tips that are offered:

1.      Give some thought to how you will fund future long term care

The idea of going to a retirement or care facility is something a lot of people don't like to think about. However, this does not mean it will never happen – and if it does, the cost can be high. 

Longterm care insurance is offered by various companies and, for a relatively low premium, can provide the funding needed to pay for care costs when and if they arise.   

2.        If you own a vacation property, give special consideration to how it will be distributed on your death

Fights over a family cottage happen quite often and can easily result in lengthy and costly litigation. A frequent source of tension is when one sibling wants to keep the cottage in the family ('because that's what mom would have wanted…') while another sibling is happy to see it sold and to receive part of the proceeds. 

To avoid this it is worthwhile discussing with your children (if they are to be beneficiaries of your estate) what to do with the property before doing your will. 

3.      Make sure to keep your will up to date

You might be surprised how many people forget to change their wills when their circumstances change (for example, leaving gifts to three grandchildren, and neglecting to update the will when more grandchildren are born, leaving some out in the cold). 

Whenever your family structure changes (by birth, marriage, divorce, death) it would be worthwhile to contact the lawyer doing your will to see if revisions would be advisable. 

It is always suggested that you discuss your plans with those who will be affected – this is a good way to help avoid fighting down the road.

Have a great day!

Megan F. Connolly  

Full post as published by Toronto Estate Law Blog on January 26, 2010 (boomark / email).