We recently had the pleasure of sitting down with Nathan Lidder from Coal Harbour Law to discuss how we work alongside lawyers to help clients create their financial plan.

One of the most common ways we do this is through setting up an estate plan. When we go to set up a clients life insurance one of the things we ask is if they have a Will, because both of these components work together to create your estate plan.

In this video we cover some of the common questions both life insurance brokers and lawyers get asked when it comes to estate planning.

What is the Importance of a Financial Team?

Your finances are a team sport, and like any team the players work together to ensure your financial success. Your financial team should include a solid life insurance broker, a good lawyer, as well as many other financial professionals.

Where does a Lawyer fit into the financial planning process?

A big part of anyone’s financial plan is their Will as it decides what happens to your assets once you pass away. Not only is your Will a key piece of your financial plan, but it is also a key piece of your life insurance.

What is Life Insurance?

There are three main types of personal insurance that work together to ensure you are covered no matter what circumstances life throws at you. The most well known, life insurance, which pays you out when you pass away. Then there is Critical Illness Insurance which pays you a lump sum, tax free, in the event that you get diagnosed with a serious illness. The last type is Disability Insurance which pays out monthly, tax free, in the event you are no longer able to work due to sickness or injury.

Why is Life Insurance and a Will important for Parents and Families?

One of the most important components of a Will for parents and families is naming a Guardian. The Guardian is someone who takes on parental duties should they pass away. In addition to naming a Guardian in the Will you are able to name that same person as a beneficiary on your Life Insurance Policy. This helps the Guardian financially support your child until they can reach the age of majority.

What are the components of a Will?

There are three things that make up a Will in a solid estate plan: The Will itself which takes action after you have passed away. A power of attorney which takes action in the case you are alive, yet unable to make financial decisions. Lastly a representation agreement which takes action in the case you are alive, but unable to make medical decisions.

What is the process of making a Will?

The process begins with meeting the client and understanding their situation better. Next the client will be provided a checklist document that covers their assets, liabilities, and the other key details needed for setting up a Will. After this a lawyer will walk the client through all the steps of the Will and complete it. Lastly, the will be sent to all the other members of the clients financial team, so that everyone is on the same page.

What is Probate?

Probate is the process of the court approving the Will for distribution, and this usually takes upwards from 8-12 months. If you do not have a Will your estate will go through a Grant of Administration which is more detailed and more lengthy process than probate.

Conclusion

If you are interested in setting up your estate plan, or learning more about the estate planning process, please fill out the contact form below and we will respond to you within 24hrs (on business days).