Wills and Estate Planning: Top Ten (#7-8)

#7.  Be sure to appoint Guardians for your minor children.  In your Will, you can express your wish as to who will be the legal guardian of your minor children if both you and your spouse are deceased.  As with the choice of Trustee, this decision must not be made based on concerns of hurt feelings of those you do not choose for this responsibility.  The only thing that matters is what is in the best interest of the children – that also happens to be the test applied by the Court when asked to approve your choice and formally appoint the guardian. #8.  Be Realistic – make sure your plans are consistent with reality.  It is wonderful that you want to leave a cottage property to your kids, but this will not be meaningful if neither your estate nor your children can afford the capital gains tax that will be payable on your death.  For most problems, there is a solution that your estate planning professionals can help you implement.  In this case, one option would be to utilize insurance planning to ensure that funds are available to meet the expected tax liabilities and preserve the cottage for the next generation.