2020 has been a challenging year in many ways. In addition to everything else, large numbers of people have sustained financial losses from which they may never recover.
Something you may need to consider is that your estate plan requires changes to keep up with the times.
Financial factors affecting estate plans
Many people this year have experienced the following financial impacts in a short amount of time:
- Taken on more debt
- Used up their cash reserves
- Sold real property and other assets
Any one of these situations could necessitate changes. And like many Canadians, you may have dealt with two or more financial setbacks at the same time. Considering how these factors could affect the future of your family, a review of wills, trusts and other documents tied to finances may be worthwhile.
Assets formerly earmarked as inheritances for loved ones may no longer be available for one reason or another. You may have needed to cut back on your expenses, create tighter budgets and otherwise sell off assets just to get by. While it may be possible to recover financially at some point, adjustments may be necessary in the meantime in order to make sure that your estate plan remains up to date.
One of the dangers of not updating your estate plan under these circumstances is that it could lead to a complex and frustrating estate administration process for surviving loved ones, should something happen to you. In order to avoid this eventuality, a thorough review can reveal places where changes need to be made. It can help to work with a lawyer knowledgeable in Ontario estate law to increase the chances of making the appropriate adjustments – and help prevent problems down the road.