A terminal diagnosis can bring many stresses to individuals and their families. For those who have not yet addressed issues related to their wills and estates, the need to quickly plan for their family’s future can be overwhelming. There are a few steps Alberta adults can take when faced with difficult decisions such as beneficiaries or powers of attorney in the wake of a chronic disease or disability.
Before making any final decisions, it is a good idea to make sure all necessary information is in one place. One financial planning tip is to set up a ringed-binder notebook with all details about accounts and assets. This will make it easier for executors to execute a will and can cut down on the challenge of locating assets and information.
Liabilities, such as mortgages and debts, should also be detailed in these documents. Once this information is collected and an executor is named, the family can put together a legally sound will. It is a good idea to work with both a lawyer and financial planner to come up with a plan that lessens the tax burden on family members.
Tax implications are a huge consideration for those who have learned their time is limited. Some might impulsively jump to pay off their home in hopes of limiting liabilities for family members, but this can actually end up costing more in the long run depending on the mortgage agreement one has.
Careful financial consideration with wills and estates is a must. By drafting documents with the support of an Alberta lawyer and making sure all assets, liabilities and passwords are together in one place for an executor, people can better prepare their family members for the future.