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It's Your Money  

You or the court will decide

Nobody really likes to “nag” or be annoying, but some days it seems to be the only way I can get people to face issues they’d prefer to ignore:

  • money
  • insurance
  • death.   

The No. 1 item I’m constantly reminding (nagging?) people about is to get their will, power of attorney and health representative agreements set up and in place.

While most of us realize how truly important these three documents are, many keep putting this task off. 

Why do people put this off for so long?

Is it not wanting to think about death?

Are they assuming that nothing will happen to them prematurely?

I believe it was Benjamin Franklin who first said, “The only two things guaranteed in life are death and taxes."

In order to make the decisions necessary to complete these important documents, you have to face this reality and discuss what will need to be done.

If you don’t make these decisions and ensure that they will be known, the court system will make them for you. 

Another common objection that I hear from my clients is that they don’t want (or can’t afford) to spend the money to have these done properly.

Many turn to “online will kits” and assume that this should be adequate. Creating these documents can be quite complex and a trained professional’s insight can be worth their weight in gold here. 

For example, a do-it-yourself kit will not discuss the “Wills Variation Act of BC” that allows spouses and children to contest your wishes that you have laid out.

Careful planning is also needed for those who have been divorced or remarried – without properly designed documents, an ex-spouse could potentially inherit your entire estate.        

Some clients also claim they are procrastinating because they can't decide the answer to some of the questions that are being asked.

If you truly can’t decide who to name as the guardian for your children or the best executor for your estate, go forward and get the documents drawn up anyway.

It is fairly easy to make adjustments down the road without having to redo the whole thing.  

If after reading all of this, you still feel that you don’t want to bother with a will, power of attorney and a health representative agreement, you at least owe it to yourself and your family to find out what happens if you don’t have these documents.

A quick Google search will show thousands of articles on “dying without a will in British Columbia." Similar information is also available on what happens if you’re no longer able to make medical or financial decisions. 

Your quick search will show that having these documents in place is likely not going to help you personally, but they will provide significant protection and peace of mind for your loved ones.

You’re not setting this part of your financial plan up for yourself but instead you do it for those you care about most.

The time to stop procrastinating has come.

Speak to your lawyer today and set up an appointment to create or review your plans.

If you’re not sure who to talk to, send me an email and we can point you in the right direction. 

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



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About the Author

Brett Millard is vice-president and a member of the executive leadership team at FP Canada, the national professional body for the financial planning industry. A not-for-profit organization, FP Canada works in the public interest to foster better financial health for all Canadians by leading the advancement of professional financial planning in Canada. 

He has worked in the financial advice industry for more than 15 years and is designated as a chartered investment manager (CIM) and is a certified financial planner (CFP).

He has written a weekly financial planning column since 2012 and provides his readers with easy to understand explanations of the complex financial challenges they face in every stage of life. Enhancing the financial literacy of Canadian consumers is a top priority for Brett and his ongoing efforts as a finance writer focus on that initiative. 

Please let Brett know if you have any topics you’d like him to cover in future columns ,or if you’d like a referral to a qualified CFP professional in your area, by emailing him at [email protected].

 



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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