Families during COVID-19 have realized that they should focus on concerns such as planning the family’s future.
One of the most difficult challenges a Certified Financial Planner® has is to encourage clients to update and/or review their estate plan and documents. Often families tend to put this off, as it is not seen as urgent.
However, COVID-19 has brought family planning and care issues to the forefront for many families as concerns for their loved ones and their economic well being have become top of mind. Everyone’s life has been impacted, regardless of age.
As a result, families now realize they should focus more on these concerns, but are often unsure where to start.
Based on my experience of helping many families over the years, the following list from my book can be a good starting point.
Excerpts from the Book – Preserving Wealth – written by Jack Lumsden, MBA, CFP®
It was still raining, and as we rode staunchly back home in the tin boat, getting drenched, I summarized the key points from today’s meeting in my mind:
- Everyone should have a will drawn up, as well as a power of attorney for property and personal care.
- You should consider factors of trust, ability, financial knowledge, and sometimes even geographical proximity when choosing your executor and designating your power of attorney.
- A power of attorney for property comes into effect as soon as it is signed.
- A power of attorney for personal care will not come into effect until or unless you become incapable of making your own decisions.
- You should review the contents of your will and power of attorney on an annual basis and every time your circumstances change significantly, such as a divorce or birth of a child.
- Create a digital estate plan.
- Consult a lawyer and be prepared to spend enough money to ensure the job is done properly and thoroughly.
- It’s important to name trustees and guardians for your children in your will. – Consider a professional trustee for your trusts.
- Spouses might give one another power of attorney for property and personal care to ensure that the spouse has access to all financial assets and can implement your expressed wishes for personal care.
- It’s important to have a frank discussion now with the person who holds your power of attorney for personal care about your specific wishes should you become incapacitated.
- Introduce your power of attorney for property and your executor to your certified financial planner.
For more information, you can refer to Preserving Wealth: The Next Generation – The definitive guide to protecting, investing and transferring wealth by Jack Lumsden, MBA, CFP®
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Jack Lumsden, MBA CFP® Financial Advisor, Assante Financial Management Ltd.
This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. The information provided is for illustrative purposes only. Commissions, trailing commissions, management fees and expenses, may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. Please read the Fund Facts and consult your Assante Advisor before investing.
Insurance products are services provided through Assante Estate and Insurance Services Inc.
