Love and Legacy

For many, leaving a lasting legacy for their family is an important priority. With a little planning, you can balance retirement and leaving a meaningful legacy, too. It all comes back to planning for the future today. Just about everyone can benefit from the development of an estate plan.

Have an Honest Talk with Your Family

Talk to your spouse or partner about what you both want out of retirement and your shared legacy. Do you both want to leave something to the kids? Donate to a charity? Also, talk about whether you want to give these gifts now while you’re still alive or after one or both of you have passed away.

Balance Your Desire to Help the Kids with Your Income Needs

Want to give your grandkids educational opportunities or help your son or daughter buy a home? Before you gift money while you are still alive, make sure you also have enough money set aside to last your full retirement.

Decide the Best Time to Give Away Assets

If you do plan to leave money or other assets to family (the family cottage, for example), think about how much control you want to have over those assets while you are still alive. Also think about whether you want to have the experience of watching your beneficiaries enjoy these gifts.

Put Together an Estate Plan, If You Don’t Already Have One

An estate plan helps you pass on your assets to your loved ones or to the causes you support in the fastest and most tax-efficient way. Without these important protections in place:

• The courts will appoint someone to manage and distribute your estate—and they may not choose the person you would want.
• There could be significant delays distributing your assets to your loved ones or missed tax-efficiencies.
• Extra legal fees may be required to settle your estate.

Want to know more? A financial planner can help you strike the right balance between your legacy goals and your other plans and priorities.

Jennifer Taylor, CFP®, PFP, Financial Planner, RBC Royal Bank