October 1999 volume 3, issue 3 

The president of a multinational shipping company, Andrew Parks* was never a big fan of estate planning. “It’s morbid, if you ask me,” he’d say when his accountant broached the subject. “Why should I worry about dying when I’m very much alive and well?”

After his death, the family of Andrew Parks discovered his 30-year-old will left them owing thousands of dollars in taxes due to improper planning. What’s more, Parks hadn’t updated his will since the birth of his last two grandchildren, leaving them with no inheritance at all. Since Parks had divorced his first wife and then re-married, there were bitter squabbles among his children from both marriages. What was already a difficult situation was compounded by the fact that Parks had neglected to properly prepare his estate plan. The result was chaos.

For many individuals, making plans for “life after death” is an unwelcome prospect; yet the implications of dying without a proper will are just as unpleasant.

There are a number of benefits to taking care of your will ahead of time. With a current and thorough estate plan, you can:

• determine what happens to your money after you pass on
• minimize the taxes payable on your estate after your death establish clear ownership of joint properties, investments and bank accounts
• ensure your beneficiaries’ needs are met during the settling of your estate,
• set up tax-wise trusts to help preserve properties like your home and family cottage.

The first step in preparing an estate plan is calculating your net worth, including stocks, bonds, real estate, RRSPs and/or other investments, and to review your earnings that may include your pension plan. At this stage, the goal is to provide you with a snapshot of your current financial picture, and help determine what the tax implications will be for your beneficiaries in the event of your death.

Deciding how you will divide your accumulated wealth among your beneficiaries is the next step. In many cases, this phase of estate planning raises many difficult questions. Who will act as my executor? What will happen to the family business when I am no longer there to run it? What will become of my heirlooms, rental assets and investment portfolio? Who will inherit my properties, including that commonly overlooked asset, the family cottage?

Addressing these important questions early on — and considering the legal and tax implications that accompany them — can help avoid family conflict and ensure your estate is settled without delay. Being open and honest with family members about decisions that have been made can also help avoid disappointment and unpleasant surprises at the reading of your will.

Just as essential as preparing your estate plan is keeping it up-to-date. To do so, your will should be revisited every five years to ensure it reflects your current financial picture, as your family and business interests grow and change.

To help ensure your estate plan accurately reflects your wishes and financial state, you need the right coaching staff in your corner. Be sure to consult an independent, professional accountant or tax specialist with experience in estate planning.

No matter what lies around the next bend in the road, an estate plan can provide you and your family with the knowledge that in the event of your passing, your affairs are in order. At Wilkinson & Company LLP , our role is to make the estate planning process as simple and straightforward as possible — every step of the way.

*not his real name

Bob Yager, CA, RFP, CFP, TEP, is a Client Services Partner and Certified Financial Planner with Wilkinson & Company LLP. He is currently completing his Registered Financial Planners certification. He offers wealth planning and financial coaching services to owner managers, executives, and high net worth individuals.