There is a major misconception that estate planning for homeowners is only limited to the few privileged. When we discuss the topic of estate planning, a lot of individuals assume that it’s not relevant or does not apply to them. Estate planning isn’t necessarily for people like Jeff Bezos.
Truth be told every adult who holds certain assets such as a property in the suburbs requires estate planning. And with the rapid real estate development taking its toll in the Toronto region of Canada, more than 57% of individuals have set their minds to creating a will that can guide them through.
But what should one consider when he or she sets his or her mind to creating one? Here’s a detailed article giving insight on what should one consider when they are planning to work up an estate plan.
Start with Structuring the Ownership
Estate plans decide who is going to be the successor owner of your estate just in case you pass away. This ownership may differ based on how the homeowner structures the ownership of his property. If you’re a sole owner of a home, then in case if you meet any tragedy, your property can go to a close relative such as your spouse, your kids, or your siblings. In case, you haven’t defined any beneficiary, then the estate holds the responsibility of deciding who will eventually become the beneficiary.
In case, sometimes when Toronto lofts are for sale, the buyer usually purchases the property on co-ownership terms. In this case, the property will not be dissolved and ownership is transferred to the living owner of the current estate. It can be a relative or your friend or your spouse or somebody living.
Do You Have the Power of Attorney for Property?
Home Owning has its fair share of expenses. To discuss a few, how about paying mortgages, shoveling the driveway, paying water and electricity bills and the list kind of goes on and on. What we basically don’t realize is that who’s going to take up the responsibility in case if we suffer any illness or injury.
Here’s where a power of attorney for the particular property comes in handy. For whatever reason you find yourself becoming incapacitated or incapable of fulfilling those tasks, you can always appoint a POA for your Property who will ensure that someone you know can be there to take care of the home.
They will hold the power to make decisions; in fact, they will have the authority to sell your business. In case, when you are not around, and something bad happens to you, they will help you keep the place.
If there isn’t anybody on whom you can bestow your trust, then you can always appoint someone from the family, who can take time and is eventually capable enough to pay off your mortgages and stuff.
Create a Will Because it is a Part of Your Estate Plan
Home is everything. It’s where your life journey begins, where you brew up some of the fondest memories in life. A will is a document that ensures that all those sentiments which you’ve to build up, pass on to the person to whom you mention within your respective will. If you don’t mention anyone or do not work on creating a will, you will eventually find the provincial estate law being applied to your property. The government will then become responsible to distribute your property and give the authority to whomsoever the government deems worthy of ownership.
The benefit of having a will is that it will save your family members from going through a ton of guesswork. It will save them from finding themselves subdued in potential arguments.
However, with the Estate Plan in effect, things can escalate without having to face any trouble.
Pick an Executor and Compile the Correct Information for Them
An executor is a person who observes that the clauses set within a will are being followed. Just as much as an executor follows a will, he can also be assigned to follow other important documents such as an estate plan. These guys take up the responsibility of distributing your funds to the right individuals and they also take up the responsibility of observing the fund gets delivered to the person. By getting an executor, your loved ones can avoid all the unnecessary court delays, additional costs, and stresses which come along with all the necessary things required to handle your estate dealings.
Surely being an executor is a big job, but not everyone can take over the role and handle it proficiently.
Once you have assigned the executor, it is also the executors’ responsibility to know where the will is stored. By the law in Canada, you have to print and sign your will and keep a physical copy with you. Hence, if you are the owner of a Toronto loft for sale under 500k, then you need to get a power of attorney as well. Prepare a physical copy & a power of attorney and inform your executor of the place.
You can even tell your executor whom you are planning to leave your property. But, don’t tell them other details such as how you’re planning to get the mortgages down or what services to shut down.
Perform a Final Annual Review for Your Respective Estate Plan
It’s definitely not that simple as just setting it and totally forgetting about it. Instead, you have to go through the estate plan several times just to make it sound right and look right for others.
Plus, several changes can occur and take place in a person’s life without actually knowing. Such as a person is getting married or having a child or other relatively small changes. All of such changes can have a dramatic impact; hence, it is important that you keep on reviewing your estate plan as if it’s your “When I Die” file. Performing an annual review and working on the estate plan can benefit a lot.
So there you go, here’s everything I believe is fairly important for any individual to consider when setting up or performing their respective estate planning. Are you seeking to purchase a Toronto condos under 500K, then might I suggest that you do connect with one of the Toronto Condo Teams.
Just don’t forget to follow the above-discussed prerequisites before you mandate an estate plan.