Do you have an estate plan? Do you even know what an “estate plan” is?
Either way, Vision Credit Union can help! Vision is a community credit union with more than 36,000 members across Alberta.
Over the past 70 years, Vision has evolved from a single branch in Camrose to become the province’s third largest credit union with 24 branches across the province. Vision Credit Union has financial experts who are ready to help you at every stage of life, from going to university, to starting a business, growing your family or managing your retirement and your estate.
So how do you get started estate planning? All that an “estate plan” refers to is the process of making arrangements for the management and distribution of your assets and property after your death.
And although not all of us feel comfortable having these conversations, taking the time to speak with your loved ones and develop a comprehensive plan that outlines your wishes around assets, dependents and the settlement of your affairs upon your death is important.
“Developing an estate plan is about more than just creating an official will,” said Shama Vinayaga, Estate Support Specialist at Vision Credit Union. “It means speaking with your family and financial advisor in advance and taking the time to map out what you want to make everything easier on your loved ones once you are gone. It also means empowering trusted individuals that you have chosen to take care of your financial decisions – even while you are alive – when you have the capacity to do so.”
Looking to get started with estate planning? Here are some “estate planning” tips and tricks:
- Begin by making a list of all your assets, including real estate, investments, bank accounts, insurance policies, business interests and valuable (or sentimental) personal belongings. This will give you a clear picture of what you own and what needs to be included in your estate plan.
- Consider what you want to achieve with your plan. Do you want to provide for your family (and avoid conflicts), minimize taxes, support charitable organizations, or establish a trust for a specific purpose? Defining your goals will help shape your strategy.
- Seek professional guidance from an estate planning lawyer, accountant and/or financial planner as needed. They can help you understand the legal and tax implications of your decisions and ensure your estate plan will achieve the goals you established.
- Develop and finalize your will, as this is a crucial document that specifies how you want your assets to be distributed after your death and allows you to name an executor who will be responsible for carrying out your wishes. Although there are many online companies that offer will services, for more complicated situations, you’ll want to speak with a lawyer to help draft a valid and comprehensive will that reflects your intentions.
- Designate a power of attorney to handle your financial and legal matters in case you become incapacitated. You may also want to consider creating a personal directive that outlines your medical treatment preferences and appoints a trusted agent to make healthcare decisions on your behalf if needed.
- Review beneficiary designations on insurance policies, retirement accounts and other financial products are up to date and aligned with your estate plan. Beneficiary designations generally override the instructions in a will, so it’s essential to review and update them periodically.
- Depending on your circumstances, you can look at establishing a trust to manage and protect your assets. Setting up a trust can help you reduce the taxes you must pay, better protect your assets and support the easy transfer of your wealth. Consult with an estate planning lawyer to determine if trusts are appropriate for your situation.
- Periodically review and update your plan as your life circumstances change – for example, when you get married (or divorced), following the birth of children or death of family members, or when you acquire or sell assets.
Estate planning is a complex process, and the specific requirements and laws can vary depending on your circumstances. To speak to someone at your local Vision Credit Union branch, click here. You can also find any credit union near you using our map to speak with a trusted advisor today.