Estate Planning and Administration for Everyone: A Beginner's Guide

Updated: December 4, 2024

Lorsque nous pensons à la littératie financière, nous l'associons généralement à l'établissement d'un budget, à la constitution d'une solide épargne d'urgence et à la réduction des dettes de carte de crédit. Cependant, il ne s'agit pas seulement de se constituer une épargne et de préparer ses finances au pire, mais aussi de penser aux finances en relation avec la mort, le deuil et la mortalité. Nous devons planifier les questions juridiques et financières pour subvenir aux besoins des personnes à charge et veiller à ce que vos actifs soient protégés lorsque vous ne serez plus là.

Yes, this topic is overwhelming because it’s not easy to think about your mortality or end-of-life planning, but it's an important conversation to have. Financial literacy is about democratizing access to information so we can be more empowered to make decisions that impact us as individuals and our loved ones.

Voici quelques questions fréquemment posées sur les successions, ainsi que les étapes à suivre pour commencer à sécuriser vos actifs et vos biens :

What Is An Estate?

Nearly everyone has an estate — regardless of size! Your estate consists of everything you own: your car, home, other real estate or property, checking and savings accounts, investments, life insurance, furniture, personal possessions.

What is Estate Planning? Why Is It Important?

Estate planning involves making plans in advance about your assets and possessions and where they will go after you’re no longer here. Estate planning is important because it’s for everyone. It’s also not a one-time event. It’s an ongoing process — you should review and update your plans as circumstances change.

La planification successorale est importante car elle peut s'avérer coûteuse et déroutante si l'on ne prend pas les mesures nécessaires pour la mettre en œuvre efficacement. Si vous planifiez bien, vous réduirez le fardeau qui pèse sur vos proches après votre départ - sinon, ils devront ramasser les morceaux et s'occuper de votre succession dans la confusion et l'inquiétude.

Why Estate Planning is Critical for Everyone

We often think that estate planning is only for wealthy people, but that’s simply not the case. An estate plan will protect you and the people you love both during your lifetime and after your death:

• Estate planning ensures that your financial affairs are taken care of if you become incapacitated
• You can also put your healthcare preferences in writing so that healthcare decisions are made in line with your wishes if you’re no longer able to advocate for yourself
• You can appoint guardians for minor children and arrange for the care of your pets
• An estate plan is essential for ensuring that your assets are distributed according to your wishes

Common Estate Planning Myths and Misconceptions

There are lots of myths surrounding estate planning. Let’s take a look at some of the most common:

1. Estate planning is just for wealthy people

Not true! While estate planning can certainly help to reduce the tax burden on larger estates, it’s essential for everyone. An estate plan means that your assets will be distributed according to your wishes regardless of the size of your estate. It also ensures that you’ll be taken care of if you are incapacitated.

2. You’re too young to make an estate plan

It’s often thought that estate plans are only for elderly people, but in fact everyone over the age of 18 should make a plan for peace of mind.

3. Everything will just go to my spouse

While you might think that your affairs are simple and your spouse will inherit everything, this won’t happen automatically. If you don’t make a will then you will die intestate, in which case the courts will decide how your estate is distributed.

4. If you have a will, you can avoid probate

Probate can be a lengthy process, and some estate plans are designed to help avoid this. In many cases, making a will won’t be enough by itself. If your aim is to avoid probate, you may also have to think about other strategies such as putting your assets into a trust.

5. Estate planning is a one-and-done process

Your circumstances will change during your lifetime, and so it’s crucial to review your estate plan regularly to take account of any changes. Divorce, remarriage, the birth of a child or even buying a new home can all mean that you need to make adjustments.

What Steps Are Involved in Estate Planning?

• Étape 1 : Faites l'inventaire de tous vos biens
• Étape 2 : Documenter les dispositions prises en matière d'assurance invalidité pour remplacer votre revenu si vous ne pouvez pas travailler en raison d'une maladie ou d'un accident.
• Étape 3 : Souscrire une assurance-vie pour subvenir aux besoins de votre famille
• Étape 4 : Parlez de ce dont vos proches auront besoin lorsque vous ne serez plus là.
• Step 5: Start identifying important documents that are needed
• Étape 6 : Désignation d'un exécuteur testamentaire

L'exécuteur testamentaire est la personne qui exécute vos souhaits concernant votre succession, qui sont consignés dans votre testament ou votre fiducie. L'exécuteur testamentaire peut être une personne de votre choix. Dans le cas contraire, il sera choisi par un tribunal. L'une des principales responsabilités de l'exécuteur testamentaire consiste à suivre une procédure juridique appelée homologation. Nous reviendrons plus en détail sur ce point.

• Step 7: Decide who will be your beneficiary (or beneficiaries)
• Étape 8 : Comprendre la législation de votre État en matière d'impôt sur les successions
• Étape 9 : Poursuivre la révision et la mise à jour de vos plans

How Do I Know if My Estate Plan is Sufficient?

If you have an estate plan and will in place, you’re already ahead of 50% of the population — over half of Canadians have not made a last will and testament, according to a recent survey. However, a will alone will not be sufficient. A comprehensive estate plan will include a number of different documents to ensure that your estate is administered smoothly after your death, and that your wishes are adhered to if you become incapacitated. We’ll list these in the next section.

Key Estate Planning Documents You Should Know

While every estate plan is tailored to the individual’s particular goals, your estate planning checklist should include these essential documents:

1. A will or trust
2. Durable power of attorney
3. Beneficiary designations
4. Letter of intent
5. Healthcare power of attorney
6. Guardianship designations
7. List of important documents

What is Probate? How Long Does Probate Take?

L'homologation est la procédure juridique à laquelle est soumise votre succession après votre disparition. Au cours de cette procédure, un tribunal authentifie d'abord votre testament (ou votre fiducie) et approuve l'exécuteur testamentaire désigné afin qu'il puisse commencer à distribuer votre succession aux bénéficiaires. La durée moyenne de la procédure d'homologation est de six à neuf mois si tout se déroule sans encombre.

However, if there are no documents or if challenges arise, the process becomes more complicated. During complicated processes, probate can take up to several years. And if there isn’t an executor named, the courts ultimately decide what happens to your estate, even if this is against your wishes.

Why You Should Hire a Professional to Support You

We know that taking the first steps towards securing your legacy can feel overwhelming, which is why we recommend you do not undertake this alone. Here are a few reasons why we recommend you work with an attorney or experienced fiduciary:

1. Un avocat peut être désigné comme exécuteur testamentaire afin d'éviter tout conflit au sein de la famille.
2. Un avocat possède les connaissances juridiques et l'expertise nécessaires pour comprendre le jargon juridique.
3. Un avocat peut vous aider à gérer les conversations difficiles et à résoudre les conflits avec vos bénéficiaires.
4. Un avocat veillera à ce que votre héritage soit placé entre de bonnes mains
5. Un avocat veillera à ce que tout se déroule sans heurts afin d'éviter les complications lors de l'homologation.
6. Il est plus rentable d'engager un avocat pour vous aider à planifier votre succession que de laisser la charge financière et le stress aux personnes à votre charge et à vos bénéficiaires.

How Digital Tools Simplify Estate Administration for Individuals

Digital tools such as online wills have transformed the estate planning process for individuals. Cloud-based solutions not only make it easy to create estate planning documents online, but also to store them securely, share them with loved ones, and update them when your circumstances change.

If you choose to work with an attorney or a fiduciary, they can also benefit from using digital solutions. Leading providers such as Estateably, a platform designed specifically for trust and estate professionals, streamlines the administration process to ensure that everything goes smoothly when the time comes.

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