Not having an estate plan in place is risky. It can lead to a range of issues that can affect your assets and impact your loved ones after you pass away. Without an estate plan, your assets will likely go through probate, a legal process that can be time-consuming and costly. During probate, a court will determine how your assets are distributed according to your local laws, and these decisions may not align with your personal wishes. This means your assets could end up in the hands of unintended recipients, potentially causing disputes among family members and loved ones.

Family meetings play a crucial role in planning your legacy, ensuring that all your family members are on the same page when it comes to preserving and passing on wealth, values, and assets. These meetings provide a platform for open communication, fostering understanding and unity among your family members.

By discussing legacy planning in a family meeting setting, everyone has the opportunity to address any potential conflicts or misunderstandings that may arise in the future. This proactive approach helps to clarify your intentions and ensure that everyone’s wishes are considered.

If you are planning your family legacy, you should establish a thoughtful and well-defined framework for decision-making and responsibility among family members. This should be based on shared purpose, mission, and values and is known as a family governance plan.

The plan defines the necessary roles for the management of your wealth and family business and outlines how decisions should be made. A family governance plan can also set out mechanisms for potential future events such as selling a business or assets.

Estate planning is often associated with older individuals who have accumulated significant assets over their lifetime. However, there are numerous benefits to starting your estate planning journey while you’re young. By taking proactive steps now, you can ensure that your assets are protected, and your wishes are carried out in the future.

In Canada, there are no taxes that apply directly to inheritances. However, this does not mean that property and assets left to beneficiaries are not taxed.

There is no inheritance tax charged to beneficiaries, but by the time assets are distributed to them taxes have already been paid by your estate.

With proper planning and a fully comprehensive estate plan, including a will, you can manage the tax effect on your estate and maximize the assets passed on to your heirs.