Tips on How to Reduce Estate Planning Costs in Alberta

Estate planning is the process of making arrangements for how your assets and obligations will be distributed after your death. It involves articulating your wishes in an important document known as the last will and testament. Having a will can help ensure you leave your loved ones with financial security as well as clear guidance as to your legacy.

Other estate planning considerations can include naming a personal directive and power of attorney, establishing a trust, and possibly more. The estate planning process comes with costs, which vary depending on a number of factors. There are steps you may be able to take in structuring your estate to reduce estate planning costs in Alberta, both for yourself and your loved ones.

Our Edmonton estate administration lawyers would be happy to discuss your questions and concerns, and see how we might help you structure a cost-effective estate plan.

The Costs of Estate Planning

In Alberta, numerous factors contribute to the costs of estate planning and administration. These can include:

Probate
Administrative fees
Executor compensation
Taxes
Legal fees
And more

Your executor - the person you designate to oversee your estate after your death - will typically need to put the will through probate. This is a process by which the will is reviewed and deemed valid, thereby giving the executor the power they need to distribute your estate. Probate fees are set on a scale commensurate with the value of the estate.

The executor typically receives compensation for their labour in administering the estate. Other administrative fees, such as preparing particular documents, may also add up.

Another major consideration for the planning of your estate in Alberta is the impact of taxes on your beneficiaries. If the sale of your estate assets accrues capital gains, for example, these will be taxed. Likewise, if you have had deferred taxes, such as through a retirement account, these may become your beneficiaries’ responsibility once your assets are liquidated.

With the assistance of our Edmonton estate administration lawyers, you may be able to make informed choices to mitigate the costs associated with planning your estate.

Planning Ahead: Your Last Will and Testament

Having a last will and testament in place is one of the most important things you can do to reduce your loved ones’ stress after you pass away. If you die without a will, known as dying intestate, your assets will be distributed according to the provisions in Alberta’s estate administration act, which may mean your heirs need to pursue costly litigation in order to access your assets.

Planning with your beneficiaries in mind may include setting up a trust for loved ones who might be under the age of 18 when you pass away. This can ensure their inheritance is safely held until a time of your choosing - perhaps once they reach the age of majority.

To learn more about what you may need for a last will and testament, and to address your questions on what are the various types of trusts available for estate planning purposes in Alberta, contact our Edmonton estate administration lawyers today.

Considerations for Strategic Tax Planning

If you wish to reduce the taxes that may possibly affect your beneficiaries in the estate administration process, you may be able to do so by making particular choices to structure your estate.

Your will may, for example, provide for a charitable donation to be made by your estate. Taxes on capital gains may also be reduced by strategizing the timing of an asset’s sale.

During your lifetime, you may wish to make certain arrangements to streamline the inheritance process on major assets. For example, if you share property with a spouse, you may wish to establish a joint tenancy. That way, when you pass away, your spouse will automatically retain ownership of the property, with no need for probate, through right of survivorship.

Contact Our Edmonton Estate Administration Lawyers Today for a Consultation

Planning for the future of an estate can be a challenging process, and unexpected expenses can make it financially stressful. Our Edmonton estate administration lawyers are here to help address your questions and concerns at any step of the process. Contact us today to book a consultation and learn how we may be able to help.

** Please note, this article is intended as a general overview on the subject of estate administration law, and is not intended to be legal advice. If you are seeking legal advice, please consult with an Alberta estate administration lawyer.

What Is a Contingent Beneficiary in Alberta?

Whether you are signing your life insurance documents, organizing a trust, or preparing to write a will, you will need to decide on a beneficiary or beneficiaries. This is a key part of planning for the future, and ensuring that your assets will be distributed according to your wishes. For those looking to streamline the process of settling an estate, naming beneficiaries often features on lists of tips on how to avoid probate in Alberta.

The field of estate law involves the management of a person’s property and assets after their death, and it includes the areas of estate planning and administration, as well as the resolution of conflicts that may arise. Our Edmonton probates and wills lawyers would be happy to discuss your particular needs and see how we may be of service in helping to structure your trust, will, or more.

What is a Beneficiary?

A beneficiary is somebody who receives assets and property originally owned by somebody else. In the case of the last will and testament left by an individual who has passed away, the beneficiaries are often the person’s close family members, such as a surviving spouse, children, and/or siblings.

People have the freedom to name who they wish as a beneficiary. This can be a friend or colleague, or even a charity or other organization. What you need to provide is a means for the executor of your estate to contact the beneficiaries.

When you name beneficiaries in your life insurance policy, RRSP, or other registered assets, those assets may go directly to your beneficiaries after your death, without ever becoming part of your estate, or being subject to probate.

What is a Contingent Beneficiary?

A contingent beneficiary is “second in line” to receive your assets after your death, or after the triggering event in the case of a trust. If the primary beneficiary is unable to receive the assets because they have died, are unreachable, or have explicitly refused the inheritance.

It is often a good idea to name a contingent beneficiary, to ensure your estate is distributed according to your wishes. Often, people will name their spouse as their primary beneficiary, and their children as their contingent beneficiaries. That way, if the spouse passes away before the assets are to be distributed, the funds will go to the children.

Considerations for Choosing Your Contingent Beneficiary

Just as you can choose whomever you like as your primary beneficiaries, so too can you choose anyone - or any entity - as your contingent beneficiary. However, there are some considerations you may wish to keep in mind.

If you choose a contingent beneficiary who is a minor, they will require a trustee to look after any funds they inherit, until they turn 18.

You may choose a contingent beneficiary that is not a person. Some people choose to give their money to a charitable organization, for example, should their primary beneficiary not be available to receive the assets.

If you are excluding a potentially obvious choice of beneficiary from your will, you may wish to consult with an Edmonton probates and wills lawyer. In order to minimize the potential that your will might be challenged, it may help to include an explanation of your decision.

Another consideration is the structure of your family. If one of your children passes away before you, would you prefer their spouse to receive the inheritance, or for your remaining children to split it equally? These questions can be challenging to address on your own, but being well-informed about the possibilities of estate planning can help reduce your and your loved ones’ stress in the future. Contact our Edmonton probates and wills lawyers today to discuss your case.

What Happens if I Don’t Name a Contingent Beneficiary?

If you do not name a contingent beneficiary, and your primary beneficiary is unable to receive your assets, then your registered assets become a part of your estate and are subject to probate. If you do not name a contingent beneficiary in your will and the primary beneficiary is unavailable, then your estate may be distributed according to the Alberta Intestate Succession Act.

Contact Our Edmonton Probates and Wills Lawyers Today for a Consultation

Working with a dedicated Edmonton probates and wills lawyer can be essential to ensuring your documents are in order, and your beneficiaries clearly chosen. Whether it is the preparation of a trust or the forming of your last will and testament, or more, our team at Verhaeghe Law would be pleased to discuss your circumstances and see how we may be of service to you. Contact us today to schedule your consultation.

** Please note, this article is intended as a general overview on the subject of estate law, and is not intended to be legal advice. If you are seeking legal advice, please consult with an Alberta probates and wills lawyer.

The Importance of Estate Planning in Alberta

At Verhaeghe Law Office – our Edmonton estate administration lawyers always advise our clients to have a proper estate plan regardless of how old or young you are. While estate planning for someone in their 20s may differ from someone in their 30’s or 40’s – the sooner you have an estate plan in place, the better. Our estate lawyers can provide many estate planning solutions regardless of how small or large and complex your estate needs may be. Our lawyers will begin by gaining a thorough and detailed understanding of your estate as well as your individual needs and goals. After undertaking this phase – our lawyers will present you with many options to help accomplish your estate goals. For some individuals – the thought of succession planning after death can be a very uncomfortable and daunting task. But estate planning is very important for many reasons which we’ll explain here.

Why is Estate Planning So Important?

Having a plan in place is always better than not having a plan. One of the primary benefits of estate planning is that it leaves your loved ones with less burden after you pass on because every aspect of your estate plan will be clearly outlined in a legal document. A lawyer may provide in-depth advice on matters such as:

Cottage property and other investment property succession
Establishing trusts
Minimizing probate and estate taxes
Charitable planning
Power of attorney for personal care and other financial related matters
Maximizing life insurance and other insurance policies in an estate plan
Providing for beneficiaries with special needs
Providing for dependants
Complex will planning
Business succession planning
Retirement Planning
Incapacity Planning
High-net worth estate planning
Financial incapacity planning
Investment planning
And more

While disputes may still arise even if there is a will present – having a detailed estate plan may minimize the chances for conflict down the road if a lawyer has done it properly. An estate lawyer will also ensure that your last wishes will be carried out in the most effective, pragmatic and cost-efficient way possible. At Verhaeghe Law Office – our estate planning lawyers can also assist with domestic, cross-border and multijurisdictional trust and estate legal advice. We understand that all clients have different needs – and that’s why our lawyers will come up with a custom estate solution for you based on your individual needs.

Contact our Edmonton Estate Planning Lawyers Today

If you or a loved on are in need of legal advice regarding estate planning – contact our Edmonton estate planning lawyers today. Our estate planning lawyers can represent Albertans with all their estate planning needs. Our law firm has three offices – making it easier to serve our clients with an office in Edmonton, Athabasca and St. Albert. Book a consultation with our legal team today and let us put our experience to work for you.

Disclaimer: If you are in need of specific legal advice regarding estate planning please consult with a lawyer for specific legal advice. Our article here is intended to act as a general overview on a legal topic and not as individual legal advice.

What is Estate Planning in Alberta

In short form – estate planning refers to how your assets and money will be distributed and debts/financial obligations will be managed after you pass away away. For most individuals, estate planning can be challenging given that you have to think about succession planning after you pass away. And the larger and more complex one’s estate is – the more challenging this task may seem. However, having an estate plan in place sooner than later can save your loved ones a lot of money and grief down the road should any conflicts arise on how the estate gets settled.

Estate planning can include a variety of things such as:

Who gets what after you pass away
Complex will planning
Lawyer and financial representative referrals
Providing for beneficiaries
Charitable planning
Setting up trusts and inter vivos trusts
Minimizing probate fees
Cottage succession planning
Investment property succession planning
The distribution or re-investment of your investments including RRSPs, RESPs and other types of financial investments
Family law and special needs planning
Life insurance policies and retirement planning
Incapacity planning and personal care planning
Financial incapacity planning
Personal care planning
And more

Estate Planning Checklist in Alberta

In an earlier blog post - we discussed the importance of having an estate planning checklist and things to consider when estate planning in Alberta. Our Edmonton wills and estates lawyers always emphasize that having an estate plan not only minimizes room for conflict down the road - but also alleviates certain burdens from your loved ones during their time of grief. For example - you will want to consider things like how unsheltered assets will get spent, how to take advantage of RRSP contributions, how property gets transferred (including joint property), how funeral arrangements will take place and get paid for and life insurance policies. Before putting your estate plan in place and consulting with a lawyer - read our blog titled Estate Planning Checklist.

High Value Estate Planning in Alberta

In some cases where the estate is rather large and complex and/or if cross border assets are involved - it is imperative that you consult with an Edmonton estate planning lawyer to ensure that those assets and funds are distributed according to your last wishes appropriately. It is also important to have a proper estate plan in place to minimize the risk of conflict amongst your loved ones or beneficiaries after you pass on especially in high value estates.

Contact Our Edmonton Estate Planning Lawyers Today

If you require legal assistance from an Edmonton estate planning lawyer - contact our law firm today to book a consultation with a member of our legal team. You can book a consultation by live chatting with one of our online agents, filling out an online contact form or by dialing 587-410-2500 now. We look forward to hearing from you and are ready to assist with all your estate planning needs today.

Disclaimer: This article is in now ay intended to act as legal advice and is instead intended to act as a general overview on a legal topic. For specific legal advice pertaining to your case - contact an estate planning lawyer.