Scotia Investments

Financial Learning Centre - Have You Prepared An Estate Plan?

Scotia Investments Financial Learning Centre

Money Management Guide - Have You Prepared An Estate Plan?

It is always a good thing to be prepared, after all, life is filled with unexpected surprises both good and bad. One of the things we should all have prepared, is an estate plan as you never know what tomorrow brings, and the state in which your loved ones may be left, should something happen to you.

A will

A review of your plan will be essential in certain events, such as divorce, marriage/re-marriage, having a child/children, death of a spouse etc. In these cases certain elements of your will may now be null and void, and will need to be adjusted accordingly. In essence this is an important document that has to be kept up to date.

In reviewing your plan, separate your assets from your liabilities and check to ensure that what you're leaving behind in the instance of your death is adequate, in that it can cover the cost of your liabilities, noting that the remaining amount is what will go to your beneficiaries.

Do the necessary review

Can you financially take the risk? Do you have the resources to invest or do you need to secure a loan? Remember, you will not have any medical benefits or 401k being provided for you. Take a good hard look at your financial situation and how much risk you are willing to take before you quit your day job.

Choose wisely

Your executor, who is the person that will be in charge of your estate between the time of your death and the time your assets are issued, will need to be someone capable and dependable, with sufficient time to handle such a responsibility.

Also, choose carefully the guardian who will be responsible for your children, as your kids are most important, likewise their future, which can have a lot to do with the way they are raised.

So if you have not already done so, get that estate plan prepared. You can also consider saving and investment options to build your wealth to ensure that your dependents will be financially secure in the event of your death.