We have the pleasure of working with Canadians in all stages of life. This means sharing the joy a new birth brings our clients as they become parents or grandparents. For many affluent families, there is nothing more beautiful than meeting their new child or grandchild and knowing their legacy and bloodline will continue with this new life.
While infants and young children have a way of demanding that we stop thinking about tomorrow to be in the present with them, it’s important that families take a moment to look towards the future. It may seem impossible to imagine that the tiny baby you can hold in your arms will ever be heading off to post-secondary or helping you to run your business, but one day they’ll do just that! The weeks or months before a birth is the perfect opportunity to review your estate plan and make necessary changes to provide for your new family member’s future.
Begin Saving for Their Education. University isn’t getting any less expensive. While Canadian universities are still much more affordable than their American counterparts, your child may wish to study abroad at the likes of Harvard or even across the ocean at Oxford. It’s a good idea to begin setting aside funds for your child’s education immediately, as where and what they study will pave the way for their future success. With numerous options like banking/government programs, life insurance programs, tax-free savings accounts, and trusts, you can create a diverse investment portfolio to secure your child’s future.
Create or Update Your Estate Plan. Just as important as preparing for their future is planning for yours. Your estate plan will likely need some substantial changes now that you have a child or grandchild to account for. If you haven’t designed an estate plan yet, take this birth as a sign it’s time to start thinking about your own future. A comprehensive, custom estate plan gives you the tools to secure your child’s or grandchild’s financial future and to smoothly transition your assets to their rightful heirs.
The Power of Trusts. Trusts are an exceptional tool for providing for a loved one while protecting the asset from outside threats. Rather than a simple inheritance, trusts remain a separate legal entity from the heir. This keeps the trust shielded from the risk of a divorce, a lawsuit, and other unnecessary losses. Trusts also provide special tax benefits, which can be particularly important for avoiding capital gains tax when an estate is passed on.
An estate plan is a necessary tool to help affluent families safeguard their legacy now and in the future. You’ve worked hard your entire life to secure a certain lifestyle for you and your family, so it’s important to have a plan in place to ensure your wishes are kept. At MacMillan Estate Planning, we work with Canadians in person and virtually to understand the unique dynamic of their family in order to design a comprehensive estate plan built especially for them. The addition of a new family member substantially changes the family dynamic, so any estate plan will need to be evaluated and redesigned to meet the new needs of the family.
Is your family welcoming a new member? Then you’ll need a personalized estate plan that considers your family’s new circumstance. Contact MacMillan Estate Planning today to begin this process with your complimentary consultation.