Hi Sean,
After turning 68 this year, I’m starting to do some legacy planning. I’m not even sure where to start. Should I get my family (I have 2 adult children) involved or what do you recommend?
– Elizabeth

Hi Elizabeth,

It’s great to hear you are wanting to make plans for the future. The first step would be to identify your goals. Do you want to leave money to your children now or when you pass? Are there projects you are working on that others should know about? What is your children’s relationship with money like? There are a whole host of things to consider which can make the task daunting. I would recommend starting with a Net Worth statement that details all of your assets and liabilities, including account numbers and relevant information such as mortgage or GIC renewal dates. Armed with this data, I’d suggest working with a financial advisor to ensure your financial future, you potentially have decades of happy life left.

I’ve had clients tell me that they feel very comfortable talking about their finances with their children, but many that don’t. However, I do think it’s a good idea to make them aware of your financial picture and what your legacy plans are. They don’t have to agree with you, but the number one source of family conflict is misunderstandings. If everyone is quite clear on what your wishes are, this can drastically reduce family problems. Appointing beneficiaries on your investments can streamline the estate process and reduce estate taxes.

Having an updated Will and Powers of Attorney is also very important. A Will specifies who your executor will be as well as your final wishes and beneficiaries. I recommend keeping this as straightforward as possible, as the more complicated you make it, the more likely for different interpretations. A Power of Attorney (PoA) is in effect while you are alive, but ceases when you die. The PoA for Property specifies who your attorney for financial matters would be if you were unable to make those decisions yourself. The PoA for Personal Care specifies who you appoint for medical decisions if you were unable to make those decisions yourself. In all cases, it’s important that you appoint someone you trust to act in your best interest and who will carry out your wishes.

Working with a financial advisor can help with many of the above steps and can help make sure your goals are achieved.