Category: Estate Planning

The Estate Planning Gap: 85% of Canadians Don’t Have a Plan

Nancy Boisvert Estate Planning
stressed executor and adult child

What Is The Estate Planning Gap?

“Failing to plan is planning to fail.” – Alan Lakein

Simply put, the estate planning gap is the difference between those who should be creating an estate plan and those who actually have one in place. Estate planning is one of those essential life tasks that many Canadians know they should do, but few actually follow through on. In fact, while over 80% of Canadians say they want their families to receive their assets quickly and with minimal stress after their death, only 15% have a formal estate plan in place. This stark contrast reveals a troubling reality: despite good intentions, most Canadians remain unprepared for one of life’s most predictable events.

This disconnect between intention and action is more than just a statistic. It represents a growing risk for Canadian families, and an urgent need for education, preparation, and support.

And the story isn’t much better for our American friends and neighbors: As of 2024, only 32% of Americans have a will or estate plan, marking a 6% decline from the previous year and the first decrease since 2020. This means that 68% of U.S. adults are without a formal estate plan, leaving their families potentially unprepared for the future.

Why the Gap Exists

So why do so many people avoid estate planning?

For some, it’s the belief that estate planning is only for the wealthy. Others feel overwhelmed by legal jargon or are unsure where to begin. Many procrastinate, assuming they have plenty of time. And still others simply find it uncomfortable to talk about death, especially their own.

But estate planning isn’t just about who gets what. It’s about protecting loved ones, avoiding unnecessary legal complications, and leaving a legacy that reflects your values.

The Hidden Causes of the Estate Planning Gap

Why are so many people delaying something so important?

The reasons are surprisingly common:

  • Lack of awareness: Many people don’t understand what estate planning entails. It’s not just writing a will. It includes naming an executor, assigning powers of attorney, planning for taxes, and sometimes creating trusts or making advanced care decisions.
  • Perceived complexity: The process can seem intimidating, especially when legal, financial, and family dynamics are involved.
  • Fear of costs: People worry about the price of legal services or mistakenly believe they can’t afford professional help.
  • Discomfort with death: Talking about mortality is never easy, which leads many to push estate planning to the bottom of the to-do list.

The Cost of Doing Nothing

When someone dies without an estate plan in place, the burden falls heavily on those left behind. Without clear instructions, families can face:

  • Long delays in probate
  • Unresolved family conflict
  • Higher legal fees
  • Court-appointed decisions that may not reflect your wishes
  • Emotional stress at an already difficult time
  • Unintended outcomes, such as estranged relatives receiving assets or minors left without guardianship plans

In short, the absence of a plan can result in confusion, conflict, and financial strain during an already difficult time.

Margaret’s Story

Consider the case of Margaret, a retired teacher in Calgary. She had three adult children and often spoke about wanting her home to go to her eldest son, who had cared for her in her final years. But Margaret never formalized these wishes. After her death, her estate, split equally between her children under Alberta’s intestacy laws, sparked resentment and infighting. Her eldest son, who had sacrificed time and income to care for her, felt betrayed by the outcome. The emotional toll lingered long after the estate was settled.

This is the very heart of Canada’s estate planning gap: good intentions left undone.

What a Complete Estate Plan Looks Like

To bridge the gap, we first need to understand what an estate plan actually includes. It’s more than just a will. A full estate plan typically covers:

  1. Will – Outlines how your assets should be distributed and who will be responsible for administering your estate.
  2. Power of Attorney (POA) – Appoints someone to handle financial matters if you become incapacitated.
  3. Personal Directive – Also called an advance care directive, it outlines your healthcare preferences and names someone to make medical decisions on your behalf if you’re incapacitated.
  4. Beneficiary Designations – Ensures RRSPs, TFSAs, pensions, and life insurance policies are directed appropriately.
  5. Guardianship Planning – Identifies who should care for minor children or dependent adults.
  6. Trusts (where appropriate) – Useful for more complex family dynamics, asset protection, or tax planning.

These documents can, and should, be tailored to your specific needs, values, and family circumstances.

Estate planning doesn’t have to be expensive or intimidating. But it does require action.

Closing the Gap Is About Empowering Families

The fact that 85% of Canadians and 68% of Americans haven’t yet created an estate plan is concerning, but it’s also a chance for families to take back control. Estate planning doesn’t have to be complicated, expensive, or something only “wealthy people” do. In reality, it’s one of the most thoughtful steps you can take to protect the people you care about.

At NEXsteps, we work alongside you to simplify the process. Whether you’re starting from scratch or trying to organize your documents and decisions, we guide you step-by-step, helping you feel confident, clear, and in control. You won’t be overwhelmed with jargon or pushed into unnecessary services. We’re here to help you understand your options, get organized, and make informed choices that reflect your values.

This isn’t about legal forms or paperwork. It’s about peace of mind. And with the right support, closing the estate planning gap becomes less of a burden, and more of a gift you give your loved ones.

How To Start Bridging the Gap

You don’t have to tackle it all at once. Start with three simple steps:

Start the Conversation
Talk to your spouse, adult children, or a trusted advisor. Discuss your wishes, goals, and concerns.

Get Organized
Gather information about your assets, debts, insurance policies, and important contacts. This makes the planning process much smoother.

Seek Guidance
Work with professionals such as a lawyer, financial planner, and an estate consultant. Services like NEXsteps help simplify the process by providing support, helping you document your wishes, and preparing you for discussions with legal and financial experts.

Closing the Estate Planning Gap

The gap between what Canadians want and what they’ve done when it comes to estate planning is too wide to ignore. But it’s also fixable. Estate planning is for everyone, not just the wealthy or elderly. It’s a gift of clarity, control, and care for those you love most.

If you’re one of the 85% who doesn’t yet have a plan, you’re not alone. But there’s no better time than now to take that first step. At NEXsteps, we guide you through the process with compassion, clarity, and confidence so you can plan wisely and live fully.

And remember: estate planning isn’t a one-time event. It should evolve with your life, whether you marry, divorce, have children, lose a loved one, or acquire new assets.

Visit our services page to see how we can help.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.

Privacy, Probate, and a Plan: Why Savvy Canadians Choose Alter Ego Trusts

Nancy Boisvert Estate Planning , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
an older man holding a top secret folder with the caption shh.. the estate planning shortcut you've never heard of.

The Role of Alter Ego Trusts in Avoiding Probate in Canada

Alter Ego Trusts:  an estate planning tool for Canadians 65+ seeking privacy, control, and efficiency

When planning for the future, many Canadians aged 65 and older are turning to alter ego trusts as a strategic tool to simplify estate administration, reduce probate fees, and protect their privacy. Introduced in 2000 under the Income Tax Act, alter ego trusts offer unique advantages, but they also come with responsibilities and limitations. Here’s what you need to know.

What Is an Alter Ego Trust?

An alter ego trust is a type of living trust available only to individuals aged 65 and older who are Canadian residents. The person who creates the trust, known as the settlor, must be the sole person entitled to receive all of the trust’s income and capital during their lifetime. They also typically act as the trustee, maintaining full control over the trust assets.

Unlike a will, which only takes effect after death and must go through probate, an alter ego trust operates during the settlor’s lifetime and continues to function after death, distributing assets to named beneficiaries according to the terms set out in the trust deed without going through probate.

Key Benefits of Alter Ego Trusts

Avoiding Probate

One of the main reasons older Canadians choose an alter ego trust is to bypass the probate process. Probate can be time-consuming, public, and costly. By transferring assets into the trust during your lifetime, those assets are no longer part of your estate and therefore do not require probate.

Maintaining Privacy

Probated wills become part of the public record. Anyone can access the details of your estate and its beneficiaries. Alter ego trusts offer confidentiality, as they are not subject to the same public scrutiny. This makes them especially appealing to those who value discretion in how their affairs are handled.

Continuity and Control

Because you remain the trustee during your lifetime, you retain complete control over the assets. You can buy, sell, or transfer trust assets as needed. You can also name a successor trustee to take over upon incapacity or death, ensuring seamless asset management without court intervention.

Potential Tax Benefits

Alter ego trusts are structured to defer capital gains taxes until the death of the settlor. This is different from most trusts, which trigger a deemed disposition of assets every 21 years. For the alter ego trust, that tax deferral can support long-term planning.

Setting Up an Alter Ego Trust: What’s Involved

Establishing an alter ego trust involves several legal and financial steps. Here’s a basic outline:

Step 1: Work with Legal and Financial Professionals

A lawyer experienced in estate planning will draft the trust deed, which outlines the terms, trustees, and beneficiaries. You’ll also want to consult a tax advisor or financial planner to assess any implications on your broader estate and tax strategy.

Step 2: Transfer Assets into the Trust

You can transfer a wide range of assets into the trust, including real estate, investments, and bank accounts. However, RRSPs and RRIFs cannot be held in an alter ego trust.

Note: While there are no immediate tax consequences for transferring assets into an alter ego trust (unlike other trusts), the assets must be legally retitled in the name of the trust. This can trigger land transfer tax, and mortgage lenders may need to be involved.

Step 3: Maintain Proper Records

Because you are still the trustee, it’s your responsibility to keep clear records, file annual tax returns for the trust, and follow the terms of the trust deed.

Considerations and Limitations

While alter ego trusts offer many advantages, they are not suitable for everyone. Consider the following:

  • Costs: Legal and accounting fees to set up and maintain the trust can be a deterrent.
  • Irrevocable Nature: Once created, the trust cannot be undone. Assets in the trust are no longer considered part of your personal estate, even though you still control them.
  • Creditor Protection: Assets in an alter ego trust are generally not protected from creditors if the settlor becomes insolvent.
  • Tax on Death: When the settlor dies, the trust is deemed to dispose of all its assets, potentially triggering capital gains taxes, similar to a regular estate. However, this can be planned for in advance.

Who Should Consider an Alter Ego Trust?

This tool is best suited for:

  • Canadians over 65 with complex estates or high-value assets
  • Those seeking privacy and streamlined administration
  • Individuals concerned about estate challenges or family disputes
  • People with a clear vision of their estate plan and long-term goals

If your main goal is avoiding probate and simplifying the transition of assets, an alter ego trust could be a valuable addition to your estate planning strategy.

Planning with Purpose

Alter ego trusts offer a powerful, flexible way for Canadians 65+ to retain control over their assets, protect their privacy, and ease the estate administration burden for loved ones. But they must be set up properly and with professional guidance.

At NEXsteps, we specialize in helping clients explore tools like alter ego trusts within the broader context of estate and legacy planning. While we don’t provide legal or financial advice, we work closely with your professional advisors to ensure your plan reflects your wishes and minimizes complexity for your family.

Ready to explore if an alter ego trust fits your goals?
Let’s talk. Book a consultation to take the first step in planning with confidence.

Visit our services page to see how we can help.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.

Legacy Planning Mistakes That Could Cost Your Family Big

Nancy Boisvert Estate Planning , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
hourglass with sands running out and faded family pictures in the background

The Biggest Mistakes People Make When Planning Their Legacy

Legacy planning is more than just writing a will. It’s about ensuring that your wealth, values, and final wishes are honored in a way that benefits your loved ones. However, many people make critical mistakes that can lead to unnecessary stress, financial loss, and even family disputes. Here are some of the most common legacy planning mistakes and how to avoid them.

1. Not Having an Estate Plan at All

One of the biggest mistakes is failing to create an estate plan in the first place. Many people assume they are too young, don’t have enough assets, or that estate planning is only for the wealthy. However, without a will or trust, your estate will be subject to intestacy laws, meaning the government decides how your assets are distributed. This can lead to unintended consequences, such as estranged family members inheriting your assets or loved ones receiving less than you intended.

How to Avoid This Mistake:

Start the estate planning process as soon as possible, regardless of your age or net worth. A basic will, power of attorney, and healthcare directive can provide essential protection for your loved ones.

2. Failing to Update the Plan

Creating an estate plan is not a “set it and forget it” task. Life changes, such as marriages, divorces, births, deaths, and financial shifts, can all impact your legacy plan. If your estate documents are outdated, your assets may not be distributed according to your current wishes.

How to Avoid This Mistake: 

Review your estate plan every few years or whenever a major life event occurs. This ensures that your beneficiaries, executors, and asset allocations remain aligned with your intentions.

3. Not Planning for Incapacity

Many people focus solely on what happens after their death and neglect to plan for what happens if they become incapacitated. Without a power of attorney or healthcare directive, your family may have to go through a lengthy and costly legal process to manage your finances or make medical decisions on your behalf.

How to Avoid This Mistake:

Establish a durable power of attorney for financial matters and a healthcare directive to outline your medical preferences. These documents ensure that someone you trust can act on your behalf if you are unable to make decisions.

4. Overlooking Beneficiary Designations

Assets such as life insurance policies, retirement accounts, and bank accounts with payable-on-death designations pass directly to the named beneficiary, regardless of what your will says. Failing to update these designations can result in unintended recipients receiving your assets.

How to Avoid This Mistake:

Regularly review and update beneficiary designations on all financial accounts, especially after major life changes like marriage, divorce, or the birth of a child.

5. Ignoring Tax Implications

Poor estate planning can lead to significant tax burdens for your heirs. Many people fail to consider estate taxes, capital gains taxes, or inheritance taxes, which can reduce the value of the assets passed on to loved ones.

How to Avoid This Mistake:

Consult an estate planning professional or financial advisor to understand the tax implications of your estate. Strategies such as gifting, trusts, and charitable donations can help minimize tax liabilities.

6. Not Communicating Your Wishes

A well-crafted estate plan is only effective if your loved ones understand your intentions. Many families face disputes or confusion because the deceased never discussed their legacy plan with them.

How to Avoid This Mistake:

Have open conversations with your family about your estate plan. Let them know where important documents are stored and discuss your reasoning behind key decisions to prevent misunderstandings.

7. Choosing the Wrong Executor or Trustee

Selecting the wrong person to handle your estate can lead to delays, mismanagement, or even legal disputes. Family members who are not financially responsible or who have conflicts of interest may not be the best choice for the role.

How to Avoid This Mistake:

Choose an executor or trustee who is responsible, organized, and impartial. If necessary, consider appointing a professional fiduciary or estate attorney to manage your estate.

8. Failing to Protect Assets from Creditors or Lawsuits

Without proper planning, your assets may be vulnerable to creditors, lawsuits, or even long-term care expenses. This can reduce the inheritance available to your heirs.

How to Avoid This Mistake:

Use legal tools like trusts, asset protection strategies, and proper insurance coverage to safeguard your wealth from potential claims.

9. Assuming Family Will Handle Everything Fairly

Many people assume their family will distribute assets fairly and amicably. Unfortunately, disagreements and emotions can lead to major conflicts, resulting in legal battles and fractured relationships.

How to Avoid This Mistake:

Clearly outline asset distribution in legally binding documents and consider using a trust to provide structured inheritance management. A neutral third party, like a trustee or mediator, can also help resolve disputes.

10. Not Considering Long-Term Care Costs

A major oversight in legacy planning is failing to account for potential long-term care costs, such as nursing home expenses or home care. These costs can quickly deplete your assets, leaving little to pass on to your heirs.

How to Avoid This Mistake:

Explore long-term care insurance, Medicaid planning, or other financial strategies to cover potential care expenses without eroding your estate.

Leave a Legacy, Not a Mess

Legacy planning is about more than just dividing assets. It’s about making thoughtful, intentional choices that reduce confusion, minimize conflict, and reflect your values. By avoiding these common mistakes, you can leave behind clarity and comfort for the people you care about most.

At NEXsteps, we understand how complex legacy planning can be, and we’re here to help you every step of the way. As a Certified Executor Advisor, NEXsteps brings the expertise and compassion needed to guide you through the process with confidence. Whether you’re just getting started or reviewing an existing plan, we’re here to help you turn your wishes into a well-executed plan that supports your loved ones long after you’re gone.

Take the time to review your estate plan, communicate with your family, and seek professional guidance to ensure your legacy is preserved the way you intend.

Visit our services page to see how we can help.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Please send us your questions or share your comments.

Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.

 

Estate Planning & Your Digital Legacy: What Happens to Your Online Accounts?

Nancy Boisvert Estate Planning , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
an image of a man before a computer and a tablet, with images of various online icons demonstrating the number of digital assets he has

Why Your Digital Legacy Matters

Estate planning is often associated with physical assets like houses, cars, and financial accounts. However, in today’s digital age, your online footprint is just as important. From social media profiles and email accounts to cloud storage and online businesses, your digital assets hold sentimental, financial, and legal significance.

Failing to plan for your digital legacy can create confusion for loved ones, leaving them unsure of how to manage your online presence. Without clear instructions, important accounts may become inaccessible, personal data could be lost, and online identities could remain active long after they should be retired. Proper planning ensures your digital legacy is managed according to your wishes, providing peace of mind for both you and your heirs.

Understanding Digital Assets: The Invisible Inheritance

Your digital legacy consists of more than just data—it includes:

  • Social media accounts (Facebook, Instagram, LinkedIn, Twitter, etc.) that may contain personal photos, videos, and messages.
  • Email accounts that may hold essential personal or financial information.
  • Online banking and investment accounts that could require secure management.
  • Digital photos, videos, and documents stored in the cloud that have sentimental and financial value.
  • Websites, blogs, and domain names that may need to be maintained, sold, or shut down.
  • Cryptocurrency and digital wallets that require access credentials and instructions for heirs.
  • Online subscription services (Netflix, Spotify, Amazon, etc.) that should be canceled to avoid ongoing charges.

A key concern is what happens to these assets when you pass away. Some social media platforms allow memorialization, while others permit account deletion by designated representatives. Financial and email accounts often have strict access policies, potentially locking out loved ones unless legal arrangements have been made in advance. Understanding these policies can help ensure your online presence is handled appropriately and according to your wishes.

Planning Your Digital Legacy: Defining Your Wishes

A well-structured digital estate plan ensures that your online accounts are managed according to your preferences. Consider taking the following steps:

    • Document Your Digital Assets: Make a comprehensive list of your accounts, login details, and any specific instructions for each one. Store this information securely using a password manager or in a document accessible only to a trusted individual.
    • Choose a Digital Executor: Assign a trusted person to manage your online assets. This individual should have clear instructions on how to access and handle your accounts, whether that means closing them, memorializing them, or transferring ownership.
    • Include Digital Directives in Your Will: A digital will or estate plan directive can formally outline your wishes regarding your online presence. Some jurisdictions allow legal recognition of digital asset management instructions, so consult an estate planning attorney for guidance.
    • Provide Instructions for Your Social Media Accounts: Many platforms offer legacy settings where you can designate someone to manage or close your account after your passing.
    • Consider a Digital Time Capsule: Some people choose to leave behind digital messages, letters, or videos to be shared with loved ones after they’re gone, creating a meaningful digital legacy.

Tools and Resources: Taking Action

There are several ways to organize and secure your digital estate:

    • Digital Estate Planning Platforms: Services like Google’s Inactive Account Manager and password managers like LastPass or 1Password can help manage access to your accounts.
    • Social Media Legacy Settings: Many platforms offer options for handling accounts after death. Facebook, for instance, allows users to select a legacy contact or request account deletion. Google offers the Inactive Account Manager, which allows users to designate what happens to their data after a period of inactivity.
    • Legal Assistance: A lawyer specializing in estate planning can ensure your digital estate is incorporated into your overall legacy plan, preventing legal complications for your loved ones.
    • Cloud Storage & Backup Solutions: Ensure important documents and photos are backed up and that trusted individuals know how to access them.

Protecting Privacy: Honoring Your Digital Legacy

Taking steps to secure and protect your digital presence before passing away is just as crucial as planning for its management after death.

    • Prioritize Data Security: Use strong passwords, enable two-factor authentication, and keep a secure record of your credentials.
    • Minimize Your Digital Footprint: Regularly review and delete unnecessary accounts and personal information to reduce potential risks. Unused accounts can become vulnerable to hacking or fraud, so closing them in advance can protect your legacy.
    • Create a Meaningful Digital Legacy: Consider writing a digital farewell message, archiving meaningful content, or preserving important digital assets for family members. Some individuals choose to turn their online presence into a digital memorial, allowing loved ones to reflect on their life and legacy.
    • Inform Your Loved Ones About Your Digital Plan: Make sure trusted family members or your executor know where to find your digital estate plan. This will prevent unnecessary struggles in accessing important accounts and files.

The Future of Digital Estate Planning

As technology evolves, so do the considerations around digital estate planning. Artificial intelligence, blockchain, and evolving privacy laws will continue to shape how digital assets are managed after death. Some companies are already offering digital legacy solutions, allowing people to store and pass on their online information securely.

Additionally, as virtual reality and the metaverse expand, new questions will arise regarding the ownership and transfer of digital properties, avatars, and digital identities. Keeping your estate plan updated will ensure that your digital legacy aligns with both current legal guidelines and your personal wishes.

Don’t Leave Your Digital Footprint to Chance

Your digital legacy is an extension of your life and values. By making thoughtful preparations, you can ensure that your online presence is handled with care, protecting your loved ones from unnecessary stress while preserving your memory in a way that aligns with your wishes. Whether it’s securing access to important accounts, leaving behind meaningful messages, or protecting your privacy, taking action today can make all the difference for your loved ones in the future.  Estate planning is no longer just about physical possessions—it’s also about safeguarding your digital identity.

Visit our services page to see how we can help.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Contact us to share your comments or ask questions.

Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.

The Truth About Estate Planning – 10 Myths Debunked!

Nancy Boisvert Estate Planning , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
typewriter typing Myths Estate Planning

Estate Planning Myths Debunked: What You Need to Know

Estate planning is often misunderstood, leading many people to make costly mistakes or avoid planning altogether. Misinformation can leave your loved ones in a difficult position, potentially creating legal battles or unintended financial consequences.  This week, we debunk some of the most common estate planning myths to help you make informed decisions about your legacy. Once you have reviewed them, why not book your personalized 90 minute consultation to ensure your plan works for you and your loved ones.

Myth #1: Estate Planning Is Only for the Wealthy

One of the biggest misconceptions about estate planning is that it’s only necessary for those with significant wealth. In reality, estate planning is for everyone—regardless of income level. A proper estate plan ensures your wishes are carried out, protects your loved ones, and minimizes complications, regardless of the size of your estate.

Myth #2: A Will Is All You Need

While a will is a crucial part of an estate plan, it is not the only document you need. A comprehensive estate plan may also include a power of attorney, healthcare directives, trusts, and beneficiary designations. A will does not avoid probate, nor does it address issues like incapacity, creditor protection or tax minimization strategies.

Myth #3: If I Die Without a Will, My Family Will Automatically Inherit Everything

Many people assume that if they don’t have a will, their assets will seamlessly pass to their spouse or children. However, dying intestate (without a will) means your estate will be distributed according to provincial or state laws, which may not align with your wishes. This can lead to unintended outcomes and legal complications for your family. And it will take longer and potentially be more expensive!

Myth #4: Estate Planning Is a One-Time Task

Estate planning is not a “set it and forget it” process. Life circumstances change—marriages, divorces, births, deaths, and changes in financial status all impact your estate plan. Regularly reviewing and updating your plan ensures it remains aligned with your current wishes and legal requirements.

Myth #5: My Family Knows What I Want, So I Don’t Need to Write It Down

Even if you have discussed your wishes with your family, verbal agreements do not hold legal weight. Without written documentation, there is no guarantee that your intentions will be followed. A proper estate plan legally protects your choices and helps prevent family disputes.

Myth #6: A Trust Is Only for the Rich

Trusts are often associated with the ultra-wealthy, but they can be beneficial for individuals with modest estates as well. A trust can help manage assets, provide for minor children or dependents with special needs, and avoid probate, making the inheritance process smoother and more efficient.

Myth #7: Estate Planning Is Only About What Happens After I Die

Estate planning isn’t just about distributing assets after death; it also includes planning for incapacity. What happens if you have a medical crisis or accident that renders you unable to act or communicate? Powers of attorney and advance healthcare directives ensure that trusted individuals can manage your finances and make medical decisions if you become unable to do so yourself.

Myth #8: I Can DIY My Estate Plan Using Online Templates

Yes, these are options.  But while online templates may seem like a cost-effective option, they often fail to account for specific legal requirements and complexities unique to your situation. A poorly executed estate plan can lead to disputes, unintended tax burdens, or even legal invalidation. Consulting with an estate planning professional ensures your plan is legally sound and tailored to your needs.

Myth #9: Estate Planning Is Only for Older Adults

Many people believe they don’t need an estate plan until they reach retirement age. However, unexpected accidents and illnesses can happen at any time. Having an estate plan in place ensures that your assets, healthcare decisions, and dependents are taken care of, regardless of your age.

Myth #10: Naming Beneficiaries on Accounts Means I Don’t Need an Estate Plan

While naming beneficiaries on accounts such as life insurance, retirement funds, and bank accounts can help assets bypass probate, it does not cover all aspects of estate planning. It does not address incapacity planning, guardianship for minor children, tax implications, or potential conflicts among heirs. A full estate plan provides a more comprehensive approach to managing your assets and protecting your loved ones.

It’s Time to Take Action

Estate planning is an essential step in securing your future and protecting your loved ones. By dispelling these common myths, you can take proactive steps to create a plan that aligns with your wishes and safeguards your legacy. So, what’s your next move? If you haven’t yet created or updated your estate plan, now is the time to start. Seeking professional guidance can provide peace of mind and ensure your affairs are in order. Reach out to us to see how we can help.

Visit our services page to see how we can help.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Contact us to share your comments or ask questions.

Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.

Who Gets Rover? Planning for Your Pet’s Future

Nancy Boisvert Estate Planning , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
sad dog

Ensuring Your Pet’s Care After You’re Gone

For most pet owners, their pets are more than just animals—they’re family. Yet, when it comes to the law, pets are considered property, much like a car or a piece of furniture. This legal classification can create challenges when an owner dies, leaving beloved companions in limbo. Without proper planning, pets may face uncertain futures, from being shuffled between reluctant relatives to landing in shelters – or even being euthanized. By taking steps to address their care in your estate planning, you can ensure that your furry, feathered, or scaly friends are well looked after when you’re no longer there to do it yourself.

Pets are Legal Property

Under the law, pets are treated as possessions, not individuals. While most pet owners view their animals as cherished family members, the legal system doesn’t recognize them as such. This means that without specific provisions, pets are subject to the same inheritance rules as any other piece of property. This discrepancy between emotional value and legal status can lead to heartbreaking situations where pets are neglected or rehomed against the wishes of the late owner.

What Happens to Pets Without a Plan

When an owner dies without a clear plan for their pet, the animal’s fate often rests in the hands of the deceased’s next of kin or the executor of their estate. In the best cases, family members step in to provide care. However, not everyone is prepared—or willing—to take on the responsibility of a pet. Some pets end up in shelters, especially if there’s confusion or conflict among heirs about who should take them. Older pets, in particular, face lower chances of being rehomed, compounding the problem.

For example, consider Daisy, a 10-year-old Labrador whose owner passed away unexpectedly. With no provisions in place, Daisy’s care became a point of contention among the deceased’s children. None were able to take her, and she ended up in a shelter. Unfortunately, stories like Daisy’s are common, but are avoidable with proper planning.

Planning for Your Pet’s Future

The good news is that there are ways to ensure your pet’s well-being after your death. One of the most effective tools is a pet trust. This legal arrangement allows you to set aside funds for your pet’s care, designate a caregiver, and specify how the money should be used. Unlike a simple verbal agreement, a pet trust is enforceable by law, providing peace of mind that your wishes will be honored.

Including your pet in your will is another option, though it comes with limitations. Wills often take time to go through probate, during which your pet’s care may be uncertain. Additionally, a will doesn’t allow for ongoing oversight, making it less ideal than a trust for ensuring long-term care.

Additional Considerations

When planning for your pet, it’s important to think beyond who will take them. Consider the financial aspects of their care, such as food, veterinary expenses, and grooming. Be realistic about the costs and set aside an appropriate amount to cover them.

The specific needs of your pet are another key consideration. A parrot, for instance, can live 50 years or more, requiring a long-term commitment from a caregiver. A dog with medical issues may need specialized care, which can be both time-consuming and expensive. Choosing the right caregiver—someone who is willing, able, and informed—is crucial to your pet’s future happiness and health.

Tips for Getting Started

  • Assess Your Pet’s Needs: Write down all relevant information about your pet, including their diet, medical history, and personality traits.
  • Choose a Caregiver: Select someone you trust and discuss your plans with them to ensure they’re willing to take on the responsibility.
  • Consult an Estate Lawyer: Work with a professional to include pet provisions in your estate plan, whether through a trust or a will.
  • Set Aside Funds: Calculate the estimated cost of your pet’s care and allocate resources accordingly.
  • Communicate Your Wishes: Make sure your family and friends are aware of your plans to avoid confusion or disputes later.

Don’t Leave Rover’s Future to Chance

Planning for your pet’s future is an essential part of responsible pet ownership. By taking proactive steps, you can ensure that your beloved companions are cared for and cherished, even when you’re no longer there. Don’t leave it to chance—make your pet’s care part of your legacy today.

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Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.

Diverse Families & Estate Planning: Key Strategies to Secure Your Future

Nancy Boisvert Estate Planning , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
same sex couple with their young child sitting together on a sofa

Estate Planning for Diverse Families: Avoiding Legal Pitfalls

Estate planning is a critical step in ensuring that your wishes are honored and your loved ones are protected after you’re gone. For diverse families, the importance of inheritance planning cannot be overstated. Diverse families come in many forms, including blended families with stepchildren, LGBTQ+ couples and families, unmarried partners, families with adopted children, multigenerational households, and families with international ties. These unique dynamics bring opportunities and challenges that make proactive planning essential.  Let’s take a deeper look at what inheritance planning entails, its benefits, and why it is particularly vital for diverse families. We’ll also identify some of the specific challenges they may encounter and provide tips for creating an effective estate plan.

What Is Inheritance Planning?

Inheritance planning is the process of arranging for the distribution of your assets after your death. This involves creating legal documents such as wills, trusts, and powers of attorney to ensure your intentions are clear and legally enforceable.

Why Is Inheritance Planning Important?

Inheritance planning is important because it ensures that your assets are distributed according to your wishes, protects your loved ones from legal and financial complications, and minimizes potential disputes. Without a proper plan, government laws dictate how your estate is divided, which may not align with your intentions.

Here are some key reasons why inheritance planning matters:

  • Ensures Your Wishes Are Honored – A legally binding estate plan guarantees that your assets go to the people or causes you care about, rather than being subject to default inheritance laws.
  • Protects Loved Ones – Proper planning helps prevent family conflicts, financial hardships, and legal battles by providing clear instructions for asset distribution.
  • Supports Diverse Family Structures – For blended families, LGBTQ+ couples, unmarried partners, or multigenerational households, inheritance planning ensures that each family member is recognized and provided for.
  • Minimizes Taxes and Costs – A well-structured estate plan can reduce estate taxes, probate fees, and other expenses, preserving more wealth for heirs.
  • Appoints Guardians and Decision-Makers – Parents can designate guardians for minor children, and individuals can appoint trusted people to make financial and healthcare decisions if they become incapacitated.
  • Provides for Charitable Giving – Those who wish to leave a legacy through philanthropy can ensure their donations are allocated according to their wishes.
  • Avoids Lengthy Probate Processes – Clear legal documentation speeds up asset distribution and prevents unnecessary delays or legal disputes.

Why Inheritance Planning Is Essential for Diverse Families

Diverse families often face unique circumstances that make estate planning more complex but equally important. Whether you’re part of a blended family, an LGBTQ+ couple, or have ties to multiple countries, inheritance planning helps address these complexities.

Unique Needs of Diverse Families

Diverse families have unique inheritance planning needs that require thoughtful consideration to ensure fairness, legal protection, and the fulfillment of personal wishes.

  • Blended Families: In cases where families include stepchildren, former spouses, or partners from previous relationships, inheritance planning ensures equitable distribution and minimizes misunderstandings.
  • LGBTQ+ Families: For LGBTQ+ couples and families, legal protections may not automatically apply, especially in jurisdictions with limited recognition of their relationships. Proper estate planning ensures that partners and children are included and provided for, avoiding potential disputes or exclusion. As legal scholar Justice Ruth Bader Ginsburg noted, “Equal justice under law” is a guiding principle—but proactive planning ensures fairness is upheld within your family too.
  • Nontraditional Relationships: Unmarried partners or families with chosen relatives (not biologically related) benefit from clear legal recognition in estate plans.
  • International Ties: Families with assets or members in multiple countries must navigate varying inheritance laws, tax systems, and documentation requirements.
  • Single Individuals With No Children: Without a will or estate plan, your assets may go to distant relatives—or even the state—rather than to close friends, charities, or causes that matter to you. A well-defined plan ensures your money and possessions go where you intend.

Challenges of Diverse Families in Estate Planning

While inheritance planning is essential for all families, diverse families often face unique challenges, including legal complexities, cultural expectations, and sensitive family dynamics that require careful navigation. For example:

Cultural Traditions

Cultural norms and traditions often influence expectations around inheritance. For example:

  • In some cultures, it is customary to leave the bulk of an estate to the eldest child.
  • Others prioritize equal distribution among all heirs or provide for extended family members.

Estate planning allows you to honor these traditions while complying with modern legal requirements. Open discussions with family members about expectations can help bridge the gap between tradition and personal wishes.

Legal Complexities

Diverse families frequently encounter legal hurdles, such as:

  • Jurisdictional differences for families with international ties.
  • Lack of automatic legal recognition for stepchildren or unmarried partners.
  • Complications arising from dual citizenship or cross-border assets.

Working with a professional experienced in estate laws for diverse families is crucial to navigating these complexities effectively.

Family Dynamics

Blended families and those with nontraditional structures may face heightened sensitivity or conflict during estate planning. For example:

  • Stepchildren or estranged family members may feel excluded.
  • Unequal distribution of assets, even when intentional, can cause resentment.

Addressing these dynamics through clear communication and legal documentation can prevent disputes and maintain family harmony.

How to Create an Effective Estate Plan for a Diverse Family

Creating an inheritance plan for diverse families requires careful consideration of unique family structures, legal complexities, and cultural traditions to ensure that your wishes are honored and your loved ones are protected. Here are some essential steps to get started:

  • Consult Professionals
    Engage an estate planner or attorney familiar with the specific needs of diverse families. Their expertise ensures that your plan is comprehensive and legally sound.
  • Draft Clear Documents – Create a will, trusts, and other legal instruments that explicitly outline your wishes. Specify how assets should be distributed, who will serve as guardians or executors, and any other critical details.
  • Update Regularly – Life changes, such as marriage, divorce, or the birth of a child, may require updates to your estate plan. Regular reviews ensure your plan remains relevant.
  • Consider Cultural Values – Incorporate cultural or religious traditions into your estate plan where possible. This can provide comfort to your family and help uphold your legacy.
  • Foster Open Communication – Discuss your plans with family members to manage expectations and minimize misunderstandings. Transparency can reduce the likelihood of disputes later.

Safeguard Your Legacy: The Importance of Action

Estate planning is an essential tool for protecting your loved ones and ensuring your legacy is preserved. For diverse families, it offers a way to navigate unique challenges, honor cultural traditions, and address complex legal needs. By taking proactive steps and seeking professional guidance, you can create a plan that reflects your values, respects your wishes, and safeguards your family’s future. Don’t wait to begin this critical process. Reach out for a personalized consultation and take the first step to ensuring peace of mind for yourself and your loved ones.

Visit our services page to see how we can help.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Contact us to share your comments or ask questions.

Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.

Secrets to Stress-Free Legacy Planning: Your Ultimate Guide to Peace of Mind

Nancy Boisvert Estate Planning , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Secrets to Stress-Free Legacy Planning: Your Ultimate Guide to Peace of Mind

7 Secrets for Stress-Free Legacy Planning

Legacy planning is an essential part of securing your family’s future and ensuring that your wishes are honored after you’re gone. However, it can be overwhelming, with numerous legal documents, financial considerations, and emotional hurdles to navigate. The key to a smooth legacy planning process is starting early, staying organized, and addressing potential challenges proactively. In this week’s article, we’ll explore the secrets to stress-free legacy planning, helping you build a comprehensive plan that brings peace of mind to you and your loved ones.  Here are the top 7 secrets to help ensure your legacy planning is stress-free.

1. Start Early: The Sooner, the Better

One of the most important secrets to stress-free legacy planning is to start as early as possible. Many people put off planning their legacy until later in life, but the earlier you begin, the more time you have to ensure everything is in place.

Starting early gives you the opportunity to:

  • Evaluate your assets and make informed decisions about how they will be distributed.
  • Consider long-term care options, including health directives, power of attorney, and financial planning.
  • Update your plan as your life circumstances change, such as marriage, the birth of children, or significant financial changes.

By beginning your legacy planning early, you reduce the stress of rushed decisions and ensure that your plans reflect your current wishes.

2. Be Thorough: Cover All Aspects of Your Legacy

Legacy planning isn’t just about writing a will. It involves a thorough review of your financial, medical, and personal affairs. Here are some of the key components to include:

  • Will and Trusts: Ensure that you have an up-to-date will outlining how your assets will be distributed. Trusts can help manage complex estates and may offer tax benefits. Consider speaking with a professional to determine which option is right for you.
  • Power of Attorney: Designate someone to make financial and medical decisions on your behalf should you become incapacitated. This ensures that your affairs are managed according to your wishes, even if you’re unable to communicate them yourself.
  • Healthcare Directives: Create a living will or healthcare directive to guide your loved ones in making medical decisions if you are unable to do so. This prevents confusion and ensures your healthcare preferences are honored.
  • Funeral and End-of-Life Wishes: While it’s not the most pleasant subject, having a plan for your funeral and other end-of-life arrangements can ease the burden on your family. You can outline your preferences for burial, cremation, and even specific requests regarding your memorial service.

3. Communicate Clearly with Your Loved Ones

One of the biggest sources of stress during legacy planning is the lack of communication. When family members are left in the dark about your wishes, it can lead to confusion, conflict, and unnecessary tension during an already difficult time.

Be open and honest with your loved ones about your plans, especially when it comes to:

  • The distribution of your assets
  • Your healthcare and end-of-life preferences
  • The individuals you’ve appointed to make decisions on your behalf

Having these conversations ahead of time helps your family understand your intentions and can help avoid misunderstandings and potential disputes.

4. Keep Your Legacy Plan Organized and Accessible

It’s crucial to keep all of your legacy planning documents organized and easily accessible to the people who will need them. Store your documents in a secure location, such as a fireproof safe and make sure your trusted executor knows where to find them.

You should also keep an updated list of:

  • Bank account details
  • Insurance policies
  • Contact information for financial advisors and attorneys
  • A list of any debts or liabilities

By organizing your documents and ensuring they are easily accessible, you make the process of settling your estate much easier for your loved ones.

5. Review and Update Your Plan Regularly

Life is constantly changing, and your legacy plan should reflect these changes. Whether you’ve had a significant life event (such as a marriage, the birth of a child, or a change in financial status), or there have been updates to tax laws or estate planning best practices, it’s important to review your plan periodically.

Set a reminder to review your plan every few years or after any major life changes to ensure it remains up-to-date and accurately reflects your current wishes.

6. Work with Professionals: Don’t Go It Alone

While it’s possible to handle some aspects of legacy planning on your own, the process can be complex, especially when it comes to taxes, trusts, and legal matters. Working with professionals such as estate planners, financial advisors, certified executor advisors, and attorneys ensures that your plan is thorough and legally sound.

Professionals can help you navigate issues like minimizing estate taxes, creating a plan that aligns with your values, and ensuring that your documents are legally binding.

7. Plan for the Unexpected: Prepare for the Unknown

While you can’t predict every situation, there are steps you can take to plan for the unexpected. One of the best ways to do this is by including contingencies in your legacy plan, such as:

  • Designating backup beneficiaries
  • Preparing for unforeseen medical costs
  • Establishing a trust or fund for specific purposes (such as education or charitable donations)

By considering the unexpected, you can make your legacy plan more adaptable and ensure that your wishes are honored no matter what life brings.

Stress-Free Legacy Planning Is Possible

Legacy planning doesn’t have to be a source of stress and confusion. By starting early, staying organized, communicating openly with your loved ones, and seeking professional guidance, you can create a comprehensive plan that brings peace of mind to you and your family. With these secrets to stress-free legacy planning, you’ll be prepared for the future, no matter what it holds.

Key Takeaways:

  • Start early to give yourself time to consider all aspects of your legacy.
  • Be thorough in covering all areas of your estate, including healthcare and end-of-life wishes.
  • Maintain open communication with your family to avoid confusion and conflict.
  • Keep your documents organized and accessible to ensure a smooth process for your loved ones.
  • Work with professionals.

Visit our services page to see how we can help.

Watch our video here, or watch on our YouTube Channel:

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Contact us to share your comments or ask questions.

Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.

The Top 5 Reasons to Embrace the Emotions of Estate Planning

Nancy Boisvert Estate Planning , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
sitting at a desk with pictures and memorabilia and writing out a plan

The Emotions of Estate Planning: Why Facing These Feelings Matters

Estate planning is often seen as a task list of legal documents and financial allocations, devoid of emotions. But beneath these practical steps lie powerful emotions: love, legacy, fear, and even relief. Ignoring these emotions can lead to an estate plan that’s technically sound but lacking personal meaning. By anticipating and embracing these feelings, we can craft a plan that not only manages assets but also honors our values and relationships. Let’s take a look at why addressing the emotions of estate planning is essential—and how doing so can create a more fulfilling process for everyone involved.

Why Emotions Are Key to Estate Planning

1. Provides a Deeper Understanding of Goals

Estate planning is more than dividing assets; it’s about defining your legacy. Reflecting on emotions helps clarify what really matters. Take Mary, a retired teacher who wanted to leave her home to her children. After some reflection, she realized her true priority was to create lasting memories, not just leave a house. As she put it, “I want my children to remember our time together, not just the things I leave behind.” With that in mind, she decided to create a “legacy fund” for family vacations, ensuring her children and grandchildren would share experiences in her favorite places.

2. Ensures Family Harmony

Ignoring emotions in estate planning can lead to family misunderstandings or even resentment. Addressing emotional topics early can pave the way for a smoother process, sparing loved ones potential conflicts. Jack, for instance, initially left his family business to his oldest son without explaining his decision to his two younger children. When he finally opened up, he was able to share his reasons, saying, “I wanted to pass the business to the child who’s been most involved, but I also want my other kids to feel valued.” The conversation allowed him to create a plan that felt fair to all and prevented future resentments and tension.

3. Allows for Clearer Decision-Making

Strong emotions can cloud decisions, leading to choices that may not truly reflect our desires. Confronting feelings openly can prevent hasty decisions. Susan, for instance, felt conflicted about setting up a charitable fund in her name, fearing it seemed self-centered. However, once she acknowledged her concerns, she realized her wish to give back was a genuine reflection of her values, allowing her to proceed confidently. “I finally saw that it wasn’t about me, but about the causes that mattered to me,” she said, adding that addressing her initial hesitation was what made her feel so resolved.

4. Facilitates Honest Conversations

Estate planning opens the door to discuss hopes, expectations, and even regrets. These conversations, although challenging, often strengthen family bonds. Greg, a father of three, discovered this when he discussed his estate plans with his children. One daughter expressed feeling undervalued due to prior family dynamics. Greg reflected, “I didn’t realize the impact my past choices had on her,” which allowed him to reshape his plan in a way that felt fair and transparent to all his children.

5. Promotes Peace of Mind

A plan shaped by careful thought and emotional honesty brings a profound sense of peace. When feelings are embraced, the estate plan becomes not just a set of instructions but a heartfelt legacy. After working with an advisor, Sheila felt at peace knowing her estate plan reflected her deepest values and relationships, a peace she shared with her children. “I wanted them to know my choices were made with love and intention,” Sheila said, which gave everyone involved a sense of stability and comfort.

Tips for Embracing the Emotions of Estate Planning

  • Acknowledge All Feelings as Valid: It’s normal to feel a range of emotions—fear, love, uncertainty, or even sadness. Recognizing these emotions, rather than suppressing them, is the first step to meaningful estate planning.
  • Start with Reflection: Take time to reflect on what you want your legacy to represent. For example, someone passionate about education may wish to set up scholarships, while others might want to prioritize family togetherness by leaving a shared vacation property.
  • Involve a Neutral Third Party: Sometimes a professional, whether a counselor or financial advisor, can help facilitate emotional conversations. This approach was invaluable for Linda, who wanted to discuss leaving her estate to both her biological and stepchildren. With the guidance of a family mediator, she was able to open up about her concerns and develop a plan that felt fair and inclusive.
  • Communicate with Loved Ones Early: Discussing estate plans openly helps family members understand your motivations, preventing potential conflicts. Bill’s family discussions revealed differing values among his children, allowing him to tailor his plan to be as fair as possible while respecting everyone’s unique perspective.
  • Give Yourself Permission to Revisit: Emotions evolve, and so can your estate plan. Life events, such as the birth of a grandchild or a child’s illness, can reshape priorities. Revisiting your plan ensures it remains aligned with what matters most to you.

Leave a Legacy That Speaks from the Heart

Embracing the emotions of estate planning may feel daunting, but it ultimately leads to a legacy that’s both practical and heartfelt. By addressing these feelings, we honor not just our assets but also our relationships and values. Start these conversations today, for yourself and for your loved ones, and create an estate plan that leaves not only wealth but also wisdom, love, and peace. At NEXsteps, we are here to help guide you and your family through these difficult discussions.

Visit our services page to see how we can help.

Watch our video here, or watch on our YouTube Channel:

Prefer a podcast? Listen here!

Contact us to share your comments or ask questions.

Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.

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