TORONTO, July 24, 2020 /CNW/ - While Canadians and
their families are facing situations of economic, political, and
personal uncertainty, estate planning remains as relevant as ever.
The current time of crisis can be the catalyst to implement an
estate plan for the first time, or simply to review and adjust
existing plans. Does the plan still reflect the family's intentions
on incapacity and/or death despite the recent market upheavals and
uncertainties of the future?
"While most families find discussions about death and money to
be challenging, these conversations are necessary to help set
expectations and to develop a plan for inevitable times of
transition in the future," said Lesley
Cameron, Vice President, National Director of Estate
Planning Services, BMO Wealth Management. "Working with an advisor
and their team of experts can help clients build a comprehensive
estate plan that outlines the clients' legacy goals, while
incorporating solutions that will keep the estate plan flexible in
the event of market fluctuations and the uncertain economic
future."
BMO Wealth Management encourages Canadians and their families to
have a regular review of the following key issues when stress
testing their estate plans:
- The important documents: Consider the impact recent
events and market uncertainty will have on existing estate plans.
Do the wills, powers of attorney, beneficiary designations, and
trust deeds still reflect the family's priorities and intentions?
Similarly, regular review of business agreements and governing
corporate documents with business partners and external advisors
ensures all parties understand the succession plans and can
identify areas that may require adjustments in accordance with
market conditions.
- The practical realities: Reflect on the logistics of
implementing the family's intentions in the current environment. A
good first step is ensuring loved ones know where important
documents are located. Consider whether the chosen attorneys and
executors will be able to act based on possible travel restrictions
or additional demands on their time. Establishing alternatives for
when the first choice is unavailable is encouraged. An oft-missed
consideration is whether the estate has sufficient liquidity to
cover debts and income tax that will be owed by the estate. A
review of whether there is suitable insurance coverage is
critical.
- The difficult conversations: Regular discussions on the
intended distribution of assets and accounting for financial
assistance given to family members can help set their expectations.
Prepare them or the beneficiaries of the estate for future
difficult decisions by discussing their responsibilities assigned
under powers of attorney and wills.
For more information about BMO Wealth Management, please visit:
bmo.com/main/wealth-management
About BMO Financial Group
Serving customers for 200
years and counting, BMO is a highly diversified financial services
provider – the 8th largest bank, by assets, in North America.
With total assets of $987 billion as of April 30,
2020, and a team of diverse and highly engaged employees, BMO
provides a broad range of personal and commercial banking, wealth
management and investment banking products and services to more
than 12 million customers and conducts business through three
operating groups: Personal and Commercial Banking, BMO Wealth
Management and BMO Capital Markets.
SOURCE BMO Financial Group