Estate planning focuses on the payment of expenses and obligations at death and transfer of assets to successors under the Will and outside the Will. The CFP professional assesses the client’s estate wishes, projects the client’s net worth at death, determines any constraints or opportunities to achieve the client’s goals, and develops strategies and recommendations to help meet them.
Clients may not be aware of how decisions over their lifetime will affect the value of their estate and its distribution. The CFP professional can educate clients about the impact of retirement planning and risk management on their estate plan and recommend strategies, including maximizing RRSP savings, setting up an individual pension plan or purchasing additional insurance to help create the level of estate the client wishes. Estate planning is also highly integrated with tax planning since, under Canadian tax law, all capital property is deemed to be disposed of immediately prior to death.