We are always told to plan and prepare for the future. But how exactly do we do this? In Canada, estate planning is the answer. You don’t have to be alone when doing this, because an estate planning lawyer will be there for you. They can help enforce your wishes on how your assets will be distributed while ensuring that your family is taken care of.
What is estate planning?
Estate planning involves setting out a person’s wishes while they are alive, to be carried out after their death. It involves how their properties (also called assets or estates) will be distributed, along with other financial preferences of the person doing the estate plan.
Because of its complexity, estate planning is preferably done with the assistance of an estate planning lawyer.
Components of estate planning
These two elements are part of estate planning:
- planning for one’s own properties: this is done by creating a last will and testament, power of attorney or a living will (which can go by different names in every province), or a trust
- planning for the future of one’s business: this is done by including a business succession plan in the last will and testament or other legal documents
To find out more about estate planning and how it’s done, watch this video:
For help with estate planning, find an estate planning lawyer near you. If you live in Halifax, contact one of the best personal tax planning and estate lawyers in Nova Scotia as ranked by Lexpert.
What is an estate planning lawyer?
Estate planning lawyers can assist you with everything related to wills, estates, and trusts. With their knowledge of Canadian laws on wills and succession, they can help you plan your estate. This can include:
- creating your will, living will, or power of attorney
- establishing a trust in favor of your family
- proposing tax planning strategies and other methods to lessen your tax burden
- representing your estate in probate court
The importance of hiring an estate planning lawyer
An estate planning lawyer will simplify things for you, your family, and your business partners. They can explain the process of doing an estate plan and answer any questions your family or business partners might have.
With an estate planning lawyer’s services, you’re also assured that the common mistakes in estate planning will be avoided. This should make your estate plan legally sound.
To learn about estate planning laws in Canada
Before doing your estate plan, look at estate planning laws in Canada and the specific laws that apply in your province or territory. Each would have their own laws, so it’s important to talk to a legal professional when you want to do your own estate plan.
When writing a last will and testament
A will that is made with the guidance of an estate planning lawyer is better than when made on your own. An estate planning lawyer can help you write it properly so that it won’t be invalidated by the court when the time comes. Safekeeping your will can also be done by your estate planning lawyer, so that it’s easily found when needed.
Aside from helping you draft your will, estate planning lawyers can also help with your estate administration. This includes making sure that your will is implemented correctly or as directed by the court after probate.
When making a business succession plan
Among your prized assets would be the business that you’ve established, and its management and succession can be part of your estate plan. Every treatment of how your business assets will be managed after your death will depend on:
- whether you run your own business
- if you’re a partner in a partnership
- if you have shares in a corporation
An estate planning lawyer can help with drafting a succession plan, especially if managing a complex business is involved.
When establishing a trust
An alternative for transferring your estate is to establish a trust in favor of your loved ones. One advantage of a trust is that they won’t have to undergo probate. It's also the better option when you have a complicated estate. Setting up a trust may be complicated; hiring an estate planning lawyer can save you the effort.
When creating a power of attorney and health care directives
A living will is also known as:
- a directive
- a mandate
- a representation agreement
There’s a difference between a living will and a last will and testament. A living will takes effect if you’ve become unable to make decisions for yourself (i.e., you’re in a coma). Meanwhile, a last will and testament takes effect after your death.
A living will is more concerned with carrying out your preferences or decisions while you are alive, such as:
- who will take care of your family, especially your minor children
- who will manage your business on your behalf
- what are your personal and healthcare preferences
There are formal requirements to make a living will legally valid. There are also requirements as to your capacity, and that of your witnesses, at the time the living will made. You must consult with an estate planning lawyer on these matters.
When dealing with probate court
Depending on your will, your assets, and the prevailing provincial law, your will may have to undergo probate before it can be enforced. In this case, an estate planning lawyer can assist your family when dealing with a probate proceeding. This can include filing the necessary paperwork and representing you whenever there are legal disputes, even after you’ve passed away.
To find a firm with an estate planning lawyer near your area, check out our directory of the Lexpert-ranked best law firms for estate and personal tax planning in Canada.