There are a number of things you can do to protect your assets for your children in Canada. Here are a few tips:
- Create a will. A will is a legal document that sets out your wishes for how your assets should be distributed after your death. It is important to have a will in place to ensure that your assets are distributed to your children in accordance with your wishes.
- Use a living trust. A living trust is a legal arrangement that allows you to transfer ownership of your assets to a trustee, who manages them for your benefit while you are alive and distributes them to your beneficiaries after your death. Living trusts can be used to protect your assets from creditors and lawsuits, and to provide for the care of your children if they are minors or have disabilities.
- Use joint ownership. If you own an asset jointly with another person, such as your spouse or child, the surviving joint owner will automatically become the owner of the asset upon your death. This can be a way to protect your assets from creditors and lawsuits, and to ensure that your children inherit them without having to go through probate.
- Use beneficiary designations. Many types of assets, such as bank accounts, life insurance policies, and retirement accounts, allow you to designate beneficiaries. If you designate a beneficiary, the asset will be transferred directly to the beneficiary after your death. This can be a way to protect your assets from creditors and lawsuits, and to ensure that your children inherit them without having to go through probate.
- Purchase appropriate insurance. Insurance can help to protect your assets from a variety of risks, such as death, disability, and lawsuits. For example, you may want to purchase life insurance to provide for your children if you die unexpectedly. You may also want to purchase disability insurance to protect your assets if you become unable to work due to a disability.
In addition to the above tips, there are a number of other things you can do to protect your assets for your children. For example, you may want to consider creating a family trust or a testamentary trust. You may also want to consider using tax planning strategies to reduce the amount of estate taxes that your children will have to pay when you die.
It is important to speak with an experienced estate planning lawyer to discuss your specific situation and to develop a plan to protect your assets for your children.
This article is for informational purposes only and is not legal advice. Contact us today to discuss your specific situation.