Tag: estate management

The Great Wealth Transfer Myth: Leveling Expectations

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
great wealth transfer

The Anticipated Wealth Transfer

In recent years, much has been written about the coming “great wealth transfer,” where trillions of dollars are expected to pass from Baby Boomers to younger generations—Millennials, Gen X, and Gen Z. Financial forecasts often paint this transfer as a windfall for heirs, giving rise to hopes of paying off debts, buying homes, or funding retirement. However, this optimistic view might be short-sighted. While a small percentage of wealthy families will see significant transfers, the majority of people won’t receive large inheritances, and most inheritances will be modest. With people living longer and facing rising costs, many families may find that the wealth they hoped to pass on has dwindled.

Estimates suggest that Baby Boomers collectively hold more than $68 trillion in wealth and, in fact, some estimates are as high as $90 trillion! But the truth is that this wealth is unevenly distributed. Many middle and lower-income families will have a more modest inheritance, and in some cases, no inheritance at all. For many people, what is left after years of healthcare and retirement spending may be significantly less than expected. Individuals counting on inheritance to secure their financial future should rethink this strategy as it is simply not a wise move.

Living Longer Means Less to Inherit

One of the primary reasons inheritance expectations may not match reality is that people are living longer. Thanks to advances in healthcare, nutrition, and medicine, the average life expectancy has increased considerably in recent decades. In the U.S. and Canada, life expectancy now hovers around 80 years or more. But living longer means more years to fund, and those years aren’t cheap. The costs associated with living longer are staggering.

Healthcare expenses typically rise as people age, and many Baby Boomers are spending considerable portions of their savings on medications, surgeries, and ongoing medical care. Additionally, ongoing care—whether in your own home, assisted living facility, or a nursing home—can be expensive. The average cost of a private room in a nursing home is over $100,000 per year in the U.S., and this cost is only expected to increase.

For those aging in place, home modifications and hiring help for daily tasks like cooking and cleaning can also drain savings. As people live longer, they are simply spending more on their own care, daily living and well-being, leaving less behind for the next generation. In fact, many Boomers may find themselves using up their entire nest egg just to sustain their quality of life during their later years.

Don’t Count on Inheritance in Your Financial Planning

Despite the allure of the “great wealth transfer”, counting on an inheritance to fund your future is a gamble. Financial experts agree that including an inheritance as part of your financial planning strategy is risky. In most cases, there’s no guarantee that the money will be there when the time comes, especially given the rising costs of elder care. If your financial plan is built on the assumption that you will inherit, you could be left unprepared and financially vulnerable in the long run.

Several factors could derail expectations. Your parents or loved ones may need their savings to cover their own expenses, or unforeseen circumstances, such as medical emergencies, could deplete the wealth you anticipated inheriting. In some cases, they may choose to donate their assets to charities or divide their estate in ways that don’t align with your expectations.

Keep in mind that most inheritances will be modest. While the media often highlights stories of significant wealth transfers, the reality for the majority is much different. Many estates, particularly those from middle-income families, will have smaller sums left after years of healthcare and long-term living expenses. Relying on inheritance may also encourage financial complacency, with some people putting off saving and investing, assuming a future windfall will secure their retirement. This approach leaves you exposed to the significant risk of inheriting far less than you expect—or nothing at all – leaving your future financial security in jeopardy

The Importance of Estate Planning: Preparing for Longevity

Given that people are living longer and costs are increasing, estate planning is more crucial than ever. For those in their later years, it’s essential to have a solid plan in place that ensures their financial security while also considering the needs of their heirs. Without proper estate planning, unexpected costs or poor financial management can quickly erode any inheritance.

An estate plan can help manage wealth effectively, allowing for tax efficiency and ensuring that assets are distributed according to the testator’s wishes. By planning early, seniors can ensure they have enough to cover their own needs without depleting their estate. Proper estate planning tools, such as trusts, can also protect assets from being consumed by high healthcare, creditors or long-term care costs, preserving wealth for future generations.

In addition, estate planning isn’t just about money; it’s about ensuring that your personal wishes, such as healthcare directives and power of attorney, are honored. These elements are especially important as people age and may lose the ability to make decisions on their own. And keep in mind that creating an estate plan isn’t just for the older generations. The earlier an estate plan is put in place, the more control one has over their assets and their legacy. As a Certified Executor Advisor, Nancy Boisvert can guide you through this process.

Alternatives for Planning a Financially Independent Future

Instead of banking on inheritance, younger generations would be well advised to  focus on building their own financial future. Here are a few alternative strategies:

  • Start Early with Saving and Investing: The earlier you start saving and investing, the more time your money has to grow. Leverage employer-sponsored retirement plans, personal investments, and tax-advantaged accounts like IRAs, RRSPs, and TFSAs.
  • Diversify Your Income Sources: Relying solely on a job for income can be risky. Look for additional income streams, such as investments, real estate, or side businesses. This diversification can provide more financial security.
  • Plan for Healthcare Costs: Healthcare is one of the biggest expenses as we age. Consider setting aside money specifically for health-related costs and explore long-term care insurance and third party health coverage as a way to protect your savings.
  • Financial Literacy: Understanding personal finance, budgeting, and investing can empower you to make better decisions for your future. Don’t rely on potential windfalls; take control of your financial destiny.

Secure Your Future on Your Own Terms

While the great wealth transfer is still anticipated, it’s unwise to build your financial plan around an inheritance that may never come. Longer life expectancies and rising living costs mean that many estates will be significantly diminished by the time they’re passed on.  The majority of inheritances will be modest, with only a small percentage of families benefiting from significant wealth transfers. By focusing on your own financial independence, saving and investing wisely, and preparing for the unexpected, you can ensure that you’re prepared for the future—regardless of whether an inheritance is part of it.

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Seniors Housing Meltdown: Who’s Left Behind?

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seniors housing crisis

The Crisis Facing Seniors Housing

Those operating our seniors housing across the country are grappling with a growing crisis—one that threatens the well-being of our aging population. With increased regulations, rising costs, and staffing challenges, many facilities are closing their doors or struggling to provide the level of care that seniors need. This issue is compounded by a critical shortage of affordable beds, making it increasingly difficult to house our rapidly aging population.

The Impact of Increased Regulations and Rising Costs

The intention behind increased regulations is sound; to ensure that seniors facilities provide high-quality care. However, these regulations often come with a hefty price tag. Compliance with new standards requires facilities to invest in such things as additional staff training, upgraded equipment, and improved infrastructure. While these are important for maintaining quality, the financial burden can be overwhelming, especially for smaller, independent facilities that operate on tight margins.

On top of regulatory costs, facilities are also facing rising expenses in other areas. The cost of food, medical supplies, and utilities has surged, and the competitive job market has driven up wages for caregivers and medical staff. These financial pressures have led to some facilities closing, while others operate on the brink of insolvency, struggling to maintain a balance between cost and care.

The Growing Shortage of Affordable Beds

As more facilities close or reduce their capacity, the availability of affordable beds for seniors becomes increasingly scarce. This is especially concerning, given the existing shortage of affordable beds and the rapidly growing aging population. While high-priced private pay options remain available for those who can afford them, many seniors are left without viable options due to the prohibitive costs.

According to recent statistics, the number of seniors aged 65 and older is expected to nearly double in the next 20 years, further straining an already overburdened system. The shortage of affordable beds means that seniors with complex care needs—those who require around-the-clock medical attention—are at risk of not receiving the care they need. Families with limited financial means are often forced to make difficult choices, struggling to find affordable care for their loved ones.

Solutions for Supporting Senior Facilities and Ensuring Affordable Care

To address this crisis, a multi-faceted approach is necessary. Here are some potential solutions:

  • Supporting Independent Seniors: One way to alleviate the pressure on senior facilities is by supporting seniors who can live independently for longer. This can be achieved through programs that provide services such as in-home care, meal delivery, and transportation services. By helping seniors maintain their independence, we can reserve affordable beds for those with more complex care needs, ensuring that care is accessible to all.
  • Cost-Cutting Measures for Senior Facilities: Senior homes can explore ways to reduce operating costs without compromising care quality. Bulk buying opportunities for medical supplies, food, and other necessities can lead to significant savings. Additionally, investing in energy efficiency measures, such as those offered by Joules & Watts Technologies Inc., can lower utility bills and free up funds for other critical needs. By reallocating these operating funds, facilities can continue to provide high-quality, affordable care while remaining financially viable.
  • Reforming Regulations and Funding: While regulations are necessary to ensure quality care, there needs to be a balance between compliance and financial feasibility. Policymakers should consider revising regulations to make them less burdensome for smaller facilities and exploring funding options that help offset the costs of compliance. Grants or subsidies for facilities that invest in energy efficiency or other cost-saving measures could also be part of the solution.
  • Expanding Public Support and Funding: Increased public funding and support for senior care facilities can help bridge the gap between the high costs of care and the need for affordable beds. Expanding government programs that subsidize care for low-income seniors, as well as incentivizing the development of affordable senior housing, can ensure that all seniors, regardless of their financial situation, have access to the care they need.

The Way Forward: Can We Fix It?

The challenges facing senior facilities are complex, but with the right strategies and support, they can be overcome. By finding ways to support independent seniors, implementing cost-cutting measures, advocating for regulatory reform, and expanding public funding, we can ensure that our aging population receives the affordable care they deserve. It’s time to act before more facilities are forced to close their doors, leaving our most vulnerable without the support they need.

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The Will to Divide: How Disinheritance Shapes Your Legacy

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
disinheritance

Wills and Wounds: The Emotional Fallout of Disinheritance

When writing a will, emotions often run high, and decisions about who should inherit and disinheritance can be influenced by a range of factors—from strained relationships to personal grievances. However, the choice to cut someone, especially a child, out of a will can have lasting consequences on your legacy. Before cutting someone out of your will, be sure to examine closely the reasons for doing it and the potential long term effects on those who you have chosen to disinherit.  Let’s take a look at some of the reasons testators may exclude heirs, the emotional and legal fallout, and how to safeguard your legacy even after you’re gone.

Why Do Testators Cut People Out of Their Will?

Disinheriting someone from a will is not a decision that should be made lightly. Emotions rather than deep reflection often run this decision. Common reasons include:

  • Family Conflicts: Long-standing disagreements or estrangements can lead to a testator deciding to exclude a family member.
  • Perceived Injustice: A testator may feel that one child or relative has received more during their lifetime and choose to balance the scales.
  • Influence of Others: Sometimes, a new spouse or family member may influence the testator’s decisions, leading to the exclusion of others.
  • Personal Beliefs: A testator might disapprove of a child’s lifestyle or choices and decide to exclude them from the will.

The Emotional Impact on Those Left Out

Being excluded from a will can be an incredibly painful experience, particularly for children. For many, inheritance is more than just a transfer of assets; it represents a final act of love, validation, and connection. When someone is unexpectedly left out of a will, it can trigger deep feelings of abandonment and rejection, leading to lasting emotional scars.

  • Feelings of Rejection: Children who are disinherited often grapple with questions about their worth and the nature of their relationship with the deceased. They may feel as though their entire bond was conditional, leading to a sense of profound betrayal.
  • Resentment and Bitterness: The decision to exclude someone can fuel feelings of resentment not only towards the testator but also towards other heirs who were included. This can cause lasting rifts within families, turning what should be a time of grieving and remembrance into a period of conflict and animosity.
  • Unresolved Grief: Grieving a loved one is already a challenging process, but when coupled with the shock of disinheritance, it can become even more complicated. The grieving process may be stalled or prolonged as the disinherited individual struggles to come to terms with both the loss and the perceived injustice.
  • Legacy of Division: The emotional toll of exclusion often reverberates through the generations. Siblings who might have otherwise supported each other through the grieving process may find themselves divided, leading to a fractured family unit and a legacy of discord.

Legal Ramifications of Exclusion

Disinheriting someone, especially a child or close family member, can lead to significant legal challenges that may consume both time and financial resources, potentially diminishing the estate and creating public disputes. Here are some of the potential legal consequences and fallout.

  • Contesting the Will: In many jurisdictions, children and spouses have the legal right to contest a will if they believe they have been unfairly excluded. Common grounds for contesting include claims of undue influence, where the testator was pressured into making decisions, or lack of mental capacity, where the testator was not of sound mind when drafting the will.
  • Undue Influence and Legal Battles: If a testator was influenced by a new spouse or another individual to exclude a child, the disinherited party might argue that the will does not reflect the testator’s true intentions. Legal battles over such claims can be lengthy and emotionally draining, often resulting in the erosion of family relationships and the depletion of estate funds.
  • Public Disclosure: When a will is contested, the details become part of the public record, exposing private family matters to public scrutiny. This not only tarnishes the testator’s reputation but can also exacerbate the pain of the disinherited party, who might feel further humiliated and wronged.
  • Estate Depletion: Legal disputes over a contested will can quickly deplete the assets of the estate, leaving little for any of the heirs. Lawyers’ fees, court costs, and the potential for a drawn-out battle can reduce the value of the estate significantly, meaning the intentions behind the exclusion might be moot if there’s little left to distribute.

Impact on Legacy: What Will You Be Remembered For?

A person’s legacy is more than just the assets they leave behind; it’s also the memories, values, and emotional impact they impart to their loved ones, business associates and acquaintances. When someone is excluded from a will, particularly a child, it can profoundly affect how the testator is remembered.  Some of the ways that disinheriting someone can change the way you are remembered include the following.

  • Legacy of Bitterness: The decision to exclude a child can overshadow all other aspects of the testator’s life and legacy. Instead of being remembered for their love, generosity, or achievements, the testator might be remembered for the pain they caused by excluding someone from their will. This can taint the memories of the deceased, turning what should be a celebration of their life into a reflection on their final, divisive act.
  • Family Disunity: Disinheriting a family member often creates rifts that last for generations. The bitterness and division sown by such decisions can prevent families from healing, leading to ongoing disputes and a fractured family tree. Instead of leaving a legacy of unity and love, the testator might be responsible for deepening family divisions.
  • Reputation After Death: The way a will is executed can influence how others outside the family view the deceased. A will that disinherits a child may lead others to question the testator’s fairness or mental state, potentially casting a shadow over their entire life’s work and reputation.
  • Loss of Positive Influence: By excluding someone, the testator loses the opportunity to positively influence their life after death. An inheritance, even a small one, can serve as a final gesture of reconciliation, an olive branch that encourages healing and remembrance. Without it, the testator’s influence ends on a note of estrangement rather than connection.

Safeguarding Your Legacy: Alternatives to Exclusion

Cutting someone out of your will can have long lasting repercussions.  So before deciding to take this step, consider these alternatives:

  • Open Communication: Have honest conversations with your heirs about your decisions. Clear communication can prevent misunderstandings and reduce the likelihood of disputes.
  • Conditional Bequests: Instead of outright exclusion, consider leaving a conditional bequest that encourages certain behaviors or achievements.
  • Letter of Explanation: Accompany your will with a letter explaining your reasons. While not legally binding, it can provide closure and reduce the emotional impact on those left out.
  • Seek Professional Guidance: Consulting with a legal professional can help you structure your will in a way that minimizes potential disputes while honoring your wishes.

From the Grave: The Lasting Impact of Disinheritance

Deciding to exclude someone from your will, especially a child, can have far-reaching consequences that extend beyond the grave. It’s essential to weigh the emotional, legal, and familial impact of such a decision and explore alternatives that allow you to maintain your legacy while achieving your goals. By making thoughtful choices, you can ensure that your legacy is one of love, respect, and peace, rather than conflict and division.

A Certified Executor Advisor (CEA) can play a crucial role in this process by offering expert guidance on how to structure your will in a way that reflects your true intentions while minimizing potential disputes. They can help you navigate the complex emotions and legalities involved, ensuring that your legacy is preserved and your loved ones are cared for according to your wishes. Consulting with a CEA can make all the difference in leaving behind a positive and lasting legacy.

Nancy Boisvert is a CEA.  To see our programs or to make an appointment for an initial consultation, be sure to visit our online store for programs and guides. 

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Love and Legacy: It’s Time to Talk Estate Planning

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
talk estate planning

Why Children Must Talk Estate Planning with Aging Parents

As your parents age, it becomes increasingly important to have open and honest discussions about their future and talk estate planning with them. While these conversations are often difficult, they are necessary to ensure that your parents’ wishes are respected and that you, as their caregiver, are prepared to make informed decisions on their behalf. Discussing wills, power of attorney (POA), and estate planning with aging parents is not just about protecting their assets; it’s about safeguarding their legacy and ensuring their peace of mind.

 Ensuring Clarity and Avoiding Future Conflicts

One of the most compelling reasons to discuss estate planning with your aging parents is to ensure clarity regarding their wishes. It’s important to have clear direction regarding their financial and health care choices and how they want their estate to be managed and distributed.  Without a clear understanding of these decisions, misunderstandings and conflicts can easily arise among siblings and other family members after they are gone.

The Importance of a Clear Will

A will is a legal document that outlines how a person’s assets should be distributed after their death. If your parents do not have a will, or if their will is outdated, it can lead to disputes and confusion among the heirs. By discussing their will with them now, you can ensure that their wishes are clearly documented, reducing the risk of conflict and ensuring that their assets are distributed as they intend.

Preventing Family Disputes

Even in the closest families, disagreements can arise when there is uncertainty about a loved one’s wishes. By having an open conversation with your parents about their estate planning, you can help prevent these disputes and maintain family harmony during a difficult time. These conversations also give your parents the opportunity to explain some of their estate planning and distribution decisions which should prevent conflict and questions about those choices in the future.

Prepare for the Unexpected by creating a Power of Attorney

A power of attorney (POA) is a crucial component of estate planning that many people overlook. It designates someone—often a trusted family member or friend—to make decisions on behalf of your parents if they become incapacitated. This includes financial decisions, healthcare choices, and other important matters. If your parents were to become unable to make decisions for themselves due to illness, injury, or cognitive decline, an Enduring Power of Attorney ensures that their interests are protected by someone they trust. Without a POA, you may need to go through a lengthy and costly legal process to gain the authority to act on their behalf, which can be especially challenging and emotionally taxing during a crisis.

Making Healthcare Decisions

A healthcare POA or medical directive allows your parents to appoint someone to make medical decisions if they are unable to do so. This ensures that their healthcare preferences are honored, even if they are not in a position to communicate them. Discussing this with your parents now ensures that they are comfortable with the person they choose to represent them and that their healthcare wishes are known.

Minimizing Stress and Financial Burdens

Estate planning is not just about what happens after your parents pass away; it’s also about managing their assets and finances while they are still alive. By discussing estate planning with your parents, you can help them make informed decisions that will minimize stress and financial burdens for everyone involved.

Tax Planning and Asset Protection

Effective estate planning can help your parents protect their assets from unnecessary taxes and legal fees. By working with them to create a comprehensive estate plan, you can ensure that more of their assets are preserved for their intended beneficiaries rather than being lost to taxes or legal complications.  It is important to get proper advice so be sure to contact a qualified professional for these matters.

Reducing Financial Strain on the Family

Without proper planning, the cost of managing an estate can be significant. There may be capital gains and other taxes on assets if the estate was not structured to limit these costs, necessitating the sale of assets that were intended to be passed on to heirs. By helping your parents establish a clear estate plan, you can reduce the financial strain on the family and ensure that their wishes are carried out efficiently and effectively.

Honoring Your Parents’ Legacy

Estate planning is about more than just finances—it’s about honoring your parents’ legacy and ensuring that their values and wishes are respected. By having this conversation with them, you can help them leave a lasting impact that reflects their life’s work and passions.  Many people choose to include charitable donations in their estate plan as a way to give back to the community or support causes they care about. By discussing this with your parents, you can discover if this is part of their plan and help them create a legacy that continues to make a difference long after they are gone.

Passing Down Family Heirlooms and Traditions

Estate planning also allows your parents to pass down family heirlooms, traditions, and stories that are important to them. By talking with them about what they want to preserve and pass on, you can ensure that these cherished memories and items are kept within the family for future generations.

 How to Start the Conversation

Starting a conversation about estate planning with your aging parents can be challenging, but it’s a crucial step in ensuring their wishes are respected. Here are some tips to help you navigate this sensitive topic:

  • Choose the Right Time: Find a quiet, private moment when your parents are relaxed and open to discussion. Avoid bringing up the topic during stressful or emotional times.
  • Be Compassionate: Approach the conversation with empathy and understanding. Acknowledge that this may be a difficult topic for them, but emphasize the importance of planning for the future.
  • Seek Professional Guidance: Encourage your parents to consult with an estate planning attorney or financial advisor to ensure that their wishes are legally documented and that their estate plan is comprehensive.
  • Get support: As a Lifestyle and Legacy planner, I can assist with these conversations and ensure that a comprehensive roadmap is put in place.

A Conversation Worth Having

Discussing wills, POA, and estate planning with your aging parents is not just about protecting their asset – it’s about ensuring their legacy is preserved and their wishes are respected. By starting this conversation today, you can provide your parents with the peace of mind that comes from knowing their affairs are in order and that their family is prepared to support them in the future. This is a conversation that, although difficult, is truly worth having.

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Life Insurance is Misunderstood—And That Matters More Than You Think

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
life insurance

Why Life Insurance Conversations Are Often Avoided

Life insurance is one of those topics that many people prefer to avoid discussing. Whether it’s due to discomfort around the idea of death or a lack of understanding about how it works, the reality is that too many people shy away from conversations about this important financial tool. The reluctance to engage in discussions about life insurance can be problematic, especially when considering its significant benefits for estate planning and tax minimization.

The Stigma and Misconceptions Surrounding Life Insurance

The aversion to discussing life insurance often stems from a natural discomfort with the topic of death. For many people, thinking about their mortality or the financial implications for their loved ones after they’re gone makes them uncomfortable or may feel morbid. As a result, this discussion often gets pushed to the back burner, overshadowed by more immediate financial concerns like retirement savings or investment portfolios.

However, this avoidance can have serious consequences. Without insurance, families may be left financially vulnerable, and estates may face substantial tax bills that could have been minimized with proper planning.

The Marketing Challenge: Why Life Insurance is Often Misunderstood

Another key reason people avoid this discussion is a general misunderstanding of what it actually is and how it works. Many people mistakenly believe that it is only necessary for those with dependents, or they might think of it as an unnecessary expense. Others may not realize the variety of options available, from term life policies to whole life plans, each with its own set of benefits.

This misunderstanding is often exacerbated by the way these products are marketed. Insurance companies and agents often focus on the fear-based aspects of life insurance, such as the “what ifs” of dying unexpectedly, rather than highlighting the practical, long-term benefits of having a policy in place. This approach can make a policy feel like a product you hope you never need, rather than a smart, proactive financial strategy.

Traditional marketing strategies often emphasize the death benefit of a policy, leading people to associate it primarily with end-of-life planning. However, this narrow focus can obscure the broader advantages of life insurance, particularly its role in estate planning and tax minimization.  Modern policies and other insurance products can be powerful tools for wealth preservation and transfer. Yet, these benefits are often underemphasized, leaving consumers unaware of the full potential of its role as part of a comprehensive financial plan.

Unlocking the True Value: Life Insurance in Estate Planning

Despite the misunderstandings and marketing issues, life insurance is an incredibly valuable tool, particularly when it comes to estate planning and minimizing taxes. One of the primary benefits is that the death benefit is generally tax-free to beneficiaries. This can provide a significant financial cushion for your loved ones, helping them cover expenses like funeral costs, outstanding debts, and even estate taxes.  It also allows the benefit to transfer directly to the named beneficiaries, avoiding probate.

Certain life insurance policies can be structured to provide liquidity to pay estate and capital gains taxes, ensuring that your heirs don’t have to sell off assets to cover tax liabilities. This can be especially important for those with illiquid assets, such as real estate or a family business.

Another benefit is that it can be used to equalize inheritances among heirs. For example, if one child is set to inherit a business and another isn’t involved, a life insurance policy can provide the latter with a financial inheritance of equal value.

Reframing the Conversation Around Life Insurance

While life insurance may not be the most exciting or comfortable topic to discuss, it is a critical component of a well-rounded financial plan. The reluctance to engage in conversations about life insurance, coupled with widespread misunderstandings and suboptimal marketing strategies, can leave families unprotected and estates vulnerable to unnecessary taxes and delays when settling an estate.

By understanding the true value of life insurance—not just as a death benefit, but as a versatile tool for estate planning and tax minimization—you can make informed decisions that protect your loved ones and preserve your legacy.

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From Probate to Payout: Understanding Inheritance Timelines

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how long does it take to receive an inheritance

The Waiting Game: How Long Does It Take to Receive an Inheritance

When you’re expecting an inheritance, it’s natural to wonder, “How long is this going to take?” Whether you’re in Canada or the U.S., the process can feel like it drags on, but understanding what’s involved can help set your expectations. So let’s take a look at how long it usually takes to receive an inheritance, what can slow things down, and how to make the process smoother.

How Long Does It Really Take to Get Your Inheritance?

In Canada and the U.S., the wait to receive an inheritance can range from a few months to a couple of years. On average in Canada, you’re looking at about 12 to 18 months, and it takes an average of 20 months in the U.S. But why does it take so long? Here’s what can impact the timeline:

  • The Probate Process: This is the legal step where the will gets validated and assets are distributed. Depending on where you are and how complicated the estate is, probate can be quick or drag on for ages.
  • Estate Complexity: If the deceased had multiple properties, investments, or a lot of debt, it’s going to take longer to sort everything out. The executor needs to handle all of this before distributing the inheritance.
  • Where You Live Matters: In Canada, each province has its own rules, and in the U.S., it varies by state. Some places have streamlined processes, while others might have more red tape.
  • Family Dynamics: If someone contests the will or there’s a dispute among heirs, things can get messy fast. Legal battles over who gets what can add years to the process.

What Can Go Wrong?

Even if everything seems straightforward, a few common issues can throw a wrench in the works:

  • Messy or Outdated Wills: If the will is unclear or hasn’t been updated in years, it can lead to confusion and, often, disputes. This can mean more time in court before anyone sees a dime.
  • No Will: This happens more often than you might think.  Some statistics report that over 50% of all people in Canada and the U.S. do not have a will.  Without a will, the courts step in, adding time, difficulty and cost to the process.  At the end of the process there may be little to nothing left for your intended beneficiaries.
  • Hidden Assets or Debts: Sometimes, there are assets or debts that weren’t clearly identified. Finding and dealing with these can add months to the timeline.
  • Taxes, Taxes, Taxes: While Canada doesn’t have an inheritance tax, there are probate fees and the estate might still owe capital gains taxes. In the U.S., there could be estate taxes, depending on how big the estate is. Sorting out taxes can cause delays.
  • Executor Issues: The executor is in charge of managing the estate, so if they’re not up to the task, things can slow down. This is especially true if they live far away or aren’t familiar with the process. And, in some cases, the executor doesn’t even know they are named until the person passes away, and may be unwilling to accept the role and the responsibility.

How to Speed Things Up (Or at Least Avoid Delays)

While you can’t always control how long the inheritance process takes, here are some tips to keep things moving as smoothly as possible:

  • Make a Will and Keep it Updated: An up-to-date will that clearly spells out who gets what can prevent a lot of headaches. Encourage your loved ones to revisit their will regularly, especially after major life changes.
  • Pick the Right Executor: Choosing a trustworthy and organized executor is key. If no one fits the bill, consider a professional executor like a lawyer or trust company.
  • Talk to the Family: Clear communication can prevent misunderstandings and help everyone stay on the same page. The more everyone knows about what’s happening, the less likely disputes are to arise.
  • Use Estate Planning Tools: Structure your estate wisely.  Living trusts and insurance policies with named beneficiaries for example, can help bypass probate altogether, speeding up the process. But be sure to get professional advice to make sure it’s the right choice for you.
  • Get Professional Help: Navigating inheritance laws and taxes can be tricky. A lawyer or financial advisor can guide you through the process, helping to avoid common pitfalls and delays.

Final Thoughts

Waiting for an inheritance can be frustrating, especially when it feels like the process is dragging on forever. But understanding what’s involved and taking proactive steps can make a big difference. By keeping things clear, choosing the right executor, and getting the right advice, you can help ensure that when the time comes, the process is as smooth as possible.  And, when appropriate, never hesitate to ask for guidance.  As a Certified Executor Advisor, I can help.

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Rethinking Healthcare for Better Health and Longevity

Nancy Boisvert NEXsteps , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Rethinking healthcare

Rethinking Healthcare: More Money, Less Health

It’s past time that we started rethinking health care, not just in North America, but globally.  The United States leads the world in healthcare spending, yet it lags behind in life expectancy compared to the top 15 wealthiest countries. This paradox raises a critical question: why doesn’t more money translate into better health outcomes? The answer lies in the very foundation of the medical profession, which focuses primarily on illness rather than wellness. To improve health and longevity, a paradigm shift is needed—one that emphasizes wellness and preventive care.

The High Cost of Healthcare in the U.S.

According to recent data, the U.S. spends more on healthcare per capita than any other nation. In 2021, the country’s healthcare expenditure exceeded $4 trillion, averaging around $12,500 per person annually. Despite this massive spending, Americans have a lower life expectancy than their counterparts in other developed nations. Countries like Japan, Switzerland, and Australia, which spend significantly less per capita, boast higher life expectancies and better overall health outcomes.

The Illness-Centric Model

One of the primary reasons for this disparity is the illness-centric model that dominates the U.S. healthcare system. Medical education and practice are heavily focused on diagnosing and treating diseases rather than preventing them. Physicians are trained to manage symptoms and treat illnesses, often with expensive tests, procedures, and medications. While this approach is essential for acute and chronic conditions, it neglects the broader picture of health and wellness.

The Wellness Approach: A New Paradigm

In contrast, a wellness approach emphasizes prevention, holistic care, and lifestyle modifications. It focuses on the physical, mental, and social well-being of individuals. Countries with better health outcomes often invest more in primary care, public health initiatives, and education on healthy living. These nations prioritize regular check-ups, vaccinations, and screenings to catch potential health issues early. They also promote healthy lifestyles through diet, exercise, and mental health support.

The Impact of Wellness on Health and Longevity

Adopting a wellness approach can significantly improve health outcomes and increase life expectancy. For instance, regular physical activity and a balanced diet can prevent or manage chronic conditions such as diabetes, heart disease, and obesity. Mental health support and stress management techniques can reduce the incidence of depression and anxiety, which are linked to numerous physical health problems. Social connections and community engagement, often overlooked in traditional medical care, play a crucial role in mental and emotional well-being.

The Role of Education

Educating and promoting wellness to the public is a critical component of this paradigm shift. Health literacy empowers individuals to make informed decisions about their health. Schools, workplaces, and communities can all play a role in promoting healthy habits. For example, nutrition and physical education in schools can instill lifelong healthy habits in children. Workplace wellness programs can encourage employees to stay active and manage stress. Community centers can offer classes on cooking healthy meals, yoga, and meditation.

Moving Forward: Policy and Practice

To make this shift, both policy and practice must evolve. Policymakers need to allocate resources toward preventive care and public health initiatives. Insurance companies should cover wellness visits, nutrition counseling, and mental health services. Medical schools must incorporate wellness and preventive care into their curricula. Physicians should be trained to look beyond symptoms and consider the whole person, including lifestyle factors that influence health. Thankfully, we are starting to see a shift in this direction.

More Money Doesn’t Equal Better Care

The global healthcare system’s focus on illness rather than wellness is a significant factor in high costs and relatively poor health outcomes. By shifting to a wellness-oriented approach, countries can improve the health and longevity of their populations. Emphasizing prevention, holistic care, and education can lead to better health outcomes and a higher quality of life. More money doesn’t necessarily mean better care, but a focus on wellness certainly can.

Be sure to visit our online store for programs and guides. 
Watch our video here, or watch on our YouTube channel:

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Your questions and comments are always welcome! Contact us to learn more.

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