Managing Your Money

Legacy planning – who should do what?

You’ve been thinking about the legacy you wish to leave behind.  But where do you start?  Getting your Will in order is probably a good first step – but should you do it yourself or get help?  The simple answers are yes, get your Will done as soon as possible and no, don’t go it alone, get professional help.

Sure, you can purchase “off-the-rack” Will forms at various retail outlets, but they are an inadequate solution for the vast majority of us.  Your estate can encompass a wide variety of things – from domestic and foreign real estate to registered and non-registered investments, from an antique gold ring to bequests funded by insurance – and a “boilerplate” Will just can’t handle the complexities.  This could increase the possibility of a future court challenge.

In fact, if your financial situation or legacy goals are at all complex, you should not only seek professional help in the drafting and execution of your Will, you should also assemble a team that will help you create and maintain an estate plan that takes into account every facet of your financial life now and after your death.

Each situation is different, of course, but your legacy team could easily include a financial advisor, lawyer and tax planner.  The most logical place to start is with a professional who already knows you well and understands your life and financial goals.  Usually that’s your financial advisor, who can help you consult with other professionals as may be required to meet your needs.

Each of these professionals has a number of important roles to play  – and here’s how they break out:

Financial Advisor: Your financial advisor acts as the co-ordinator for the other professionals on your team.  He or she will help you define and express your legacy goals, provide tax-saving and other strategies aimed at maintaining/maximizing the value of your estate, provide on-going advice about strategic direction, and help facilitate the implementation of your agreed-upon strategies.  In short, your financial advisor will make sure your estate plan is complete.  And, after your death, he or she may be called upon to meet with your personal representative to help with estate administration.

Legal Advisor: Your legal advisor – usually a lawyer (or notary in Quebec or B.C.) –assists in reviewing your estate goals, drafts all legal documents including your Will and Powers of Attorney (if these are required) and updates these as your circumstances change.   Your legal advisor also provides direction on the strategies you’ve selected, sets up and may help administer trusts, and because he or she is familiar with your will and desires, he or she may represent your estate should the Will be contested or in any other estate disputes. You can also ask your legal advisor to assist your Personal Representative (also known as an Executor or Liquidator in Quebec) in carrying out your wishes exactly as you’ve expressed them.

Tax Planner: A professional tax planner will examine your estate goals and advise on the most advantageous tax strategies to help establish strategies for reducing taxes payable during your life and at death.  Your tax planner will also provide on-going advice on the tax implications of evolving strategies.

Legacy planning is difficult to discuss, let alone plan for – but for everyone’s sake you should do it now, not later.  Speak to your financial planner soon to develop the legacy plan – and professional team – that works best for you.

This column, written and published by Investors Group Financial Services Inc., is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, nor is it intended to provide professional advice including, without limitation, investment, financial, legal, accounting or tax advice. For more information on this topic or on any other investment or financial matters, please contact your Investors Group Consultant.

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