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4 Reasons You Shouldn’t Ignore Estate Planning

estate planning and trusts

Estate planning involves a lot more than just making a will. One of the main purposes of an estate plan is to ensure that all your final wishes are carried out in the most tax-efficient manner possible, thereby maximizing the value of your estate for your beneficiaries.

An estate plan is the single most effective way to preserve your wealth and transfer your assets efficiently and tax-effectively in accordance with your wishes. We describe below four reasons why you shouldn’t ignore estate planning.

Estate Planning Protects Beneficiaries

Your estate plan specifies who your beneficiaries are and what they are to receive. It prevents unwanted inheritors from challenging your intentions, which could delay and/or decrease asset transfer to your intended heirs.

Very importantly, your estate plan provides for the security and designated guardianship of any dependents and/or minor-aged children you may have.

By specifying what each is to receive, an estate plan also circumvents conflict between your intended heirs.  

Estate Planning Decreases Taxes

A big part of protecting your beneficiaries is limiting the taxes that may be triggered on the transfer of your assets to them. By implementing tax planning ahead of your passing and using investment structures such as trusts within your estate plan, you may be able to significantly reduce the tax burden on your heirs.

Estate Planning May Help Avoid Probate

Probate is the court-authorized process of verifying your will, estimating the value of your estate, paying any taxes, settling any debts, and validating creditors. The court may then also distribute your assets  to your heirs as it deems suitable, which may not be as you intended.

By establishing an estate plan and keeping it current, probate may be avoided. Establishing trusts as part of your estate plan may also protect your assets from creditors and excess taxes.

Estate Planning Ensures Your Legacy and Philanthropic Goals Are Fulfilled

If you have made charitable contributions during your lifetime, then you may want to ensure that your charities continue to be supported after your passing. You may also wish to donate a portion of your estate to a charity or charities that you have not previously supported. You can specify a philanthropic plan within your estate plan that will fulfill your charitable wishes and philanthropic legacy.

Make Sure to Plan Ahead

It is most beneficial to establish an estate plan that is integrated with your overall financial plan. This will help ensure that your estate plan is as tax efficient as possible as well as:

  • Avoid conflict and legal issues among your beneficiaries.
  • Ensure your assets are distributed as you wish.
  • Continue your support for charities and carry out your legacy plans.
  • Ensure your debts and taxes are covered.
  • Ensure that all your wishes are documented and carried out.
  • Reduce stress and expense for your beneficiaries.

Part of planning ahead is to ensure that your investments are well taken care of and will continue to build a legacy for your beneficiaries. For over 38 years Bloom Investment Counsel has specialized in one thing: investing in income-generating investments, specifically dividend-paying stocks. At Bloom, we are pleased to partner with your other trusted professionals such as estate planners to build a customized portfolio best suited to your needs to protect, preserve and build your wealth. Let’s TalkCall us at +1-416-861-9941 or email us at

This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.

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