When you’re young and healthy, planning for death seems irrelevant—but it’s not. Preparation for death can relieve stress from your loved ones who will have to take care of your financial and legal affairs after you pass away, while also ensuring they won’t go broke or end up in jail because they didn’t know how to handle the process of probate or what to do with your estate after you die. So how do you plan effectively to avoid all that? Check out these 7 tips on how to prepare yourself and your family for death by creating an effective estate plan.

1. Name a Beneficiary

   You’d think that because you’re married, your spouse will automatically be assigned as the beneficiary of your hard-earned savings. This is a common misconception. You’re going to want to name a beneficiary for all of your registered accounts: TFSA, RESP, RRSP, and RRIF. This procedure will vary from the company and will likely involve filling out and submitting a simple form.

2. Make Two Wills  

   Parties that hold certain assets may want to create two wills. One for assets that are subject to probate and another that provides directions as to the distribution of all other assets. Most wills are subject to probate, a process that verifies that a will is real under your province’s laws. Here is a great article that will teach you How to Avoid Probate in Canada.

3. Enduring Power of Attorney

   Allows one to designate a person to make legal decisions if one is no longer competent to do so. For more information go here.

4. Representation Agreements and Advance Directives (aka. Power of Attorney for Healthcare For Americans)

   Allows one to designate someone to make healthcare decisions for their person. For more information, go here.

5. Funeral Planning Declaration

   Allows one to say exactly one’s wishes as far as the disposition of the body and the services. For more information, go here.

6. Make a List of All Your Financial Accounts:

   Leaving a clear road map for where all of your financial assets are parked is a huge timesaver for your loved ones. You can create a list of all banks and account numbers, all investment institutions with account numbers, lists of credit cards, utility accounts, etc. You might want to also leave clear instructions about bill payments and due dates. Lastly, make sure heirs know where to find your life insurance policies and agreements.

   For your convenience, I’ve created a template spreadsheet called the Financial Login Records_TEMPLATE. Just go here and click on “File” and then “Make A Copy” to create your own.

7. Make a List of All Your Logins and Passwords Accounts

Most of us in this digital age have a number of memberships, email addresses, an Apple ID, and logins to regularly used sites. So why not leave a simple record behind that your loved ones can access?

For your convenience, I’ve created a template spreadsheet called the Login/Password Records_TEMPLATE. Just go here and click on “File” and then “Make A Copy” to create your own.

Despite all of this being a morbid topic, my hope is that this article sparks an important conversation between you and your loved ones.

I’ve tried my best to make this a comprehensive list, but if I’ve missed something, please leave a comment.

Talk with everyone closest to you and make all your wishes KNOWN. Reach out to those you’ve designated as beneficiaries and those whom you think can support them if needed. Explaining your decisions to them now can help mitigate any misinterpretations, hurt feelings, or lingering questions.

Happy plannings!

Much love,

Alex