Making an Estate Plan for Your Children - Common Mistakes (Part 2)
In this post, we will continue to outline common mistakes people make when it comes to estate planning for their kids.
Not knowing the limitations of a Power of Attorney can be a risk, according to this Forbes article. We've broken down what POA is in another blog post so we won't be going into too much depth here. Essentially, one would grant permission to an agent to make financial decisions on your behalf if you become incapacitated (unable to do so by yourself).
Banks and other financial institutions are wary of the threat of identity theft and elder abuse, however, and could have tedious processes for approving one's agent. It's best to put in a bit of extra work and contact your financial institutions ahead of time about their requirements for accepting a POA. Additionally, it could make life easier if you combined or consolidated accounts so your agent isn't chasing down and negotiating with multiple parties.
The next common mistake is thinking that your will will exclusively cover all your financial bases. Some of your assets will be considered outside of the boundaries of a will, such as life insurance, IRA's, and 401 K's. Especially if you've been investing in a common employer-matching retirement plan, you'd want to look further into these assets.
If you're interested in legal representation from a credible Downtown law firm, take a look at our website or give us a call at 604-674-7755.
Bijan Law is a general practice law firm in Downtown Vancouver. We can help you out whether you're entering a partnership for investment, starting or purchasing/selling a business, want to keep wealth within your family, immigrate to Canada, or resolve a dispute.
Note: these blog posts are written by a communications professional and are not intended to be legal advice. One of our lawyers would be glad to help if you have a specific issue in mind.