The arrival of a child is an opportunity to plan or review who will inherit your wealth
TRADITIONAL OR BLENDED FAMILY
Karim has had a new half-sister for about a week now. Anya was born to Karim's father and his new girlfriend, who has two other children from a previous relationship. Unlike her partner, she has never been married.
This scenario is commonplace today and is fairly uncomplicated, compared to some blended families we may see among our co-workers, friends and relatives. Second, and even third, marriages, children with three different mothers or fathers, de facto marriages: it's hard to keep up with some people's romantic entanglements and the repercussions for their children.
With Anya's arrival, it's definitely time for her parents to think about what would happen to their accumulated wealth if one of them were to die without a will. For example, who would inherit her father's property or assets if he were to die suddenly?
The condo in which the family lives is registered in the father's name only. Who would it go to? Certainly not to his girlfriend, even if they have been living together for seven years.
What will become of the capital from the business he founded, in which his girlfriend has recently become partner? For that matter, what will happen to the business itself? Will it survive? Will it still provide employment for its 10 workers, as well as support for his loved ones, in particular, his children?
It's not a pretty picture. In fact, many people would cringe at the prospect of their “ex” fighting over their estate before they were even laid to rest.
Protect your accumulated assets and secure them for the future
The birth of a child constitutes the ideal opportunity to take stock of your wealth and begin planning how it will be handled. It is not only imperative to take measures to protect the assets you have accumulated, you must now also see how they can be secured well into the future for your family. By giving thoughtful consideration to all elements, you can ensure a minimum level of comfort for your loved ones and protection against the unforeseen.
A notary is the best advisor to help parents living in situations not clearly defined by current laws to make informed decisions and, especially, to record their decisions in documents that will be registered with the Chambre des notaires du Québec. The will, mandate in case of incapacity and wealth inventory are the bases of this protection. They provide all the instructions and provisions regarding the actions to be taken if one day you are unable to take care of yourself, your own affairs, your children or your loved ones.
When a new member arrives in the family, the notary will not only clarify these points with the couple but will also go over all other elements that could affect the protection of wealth. Is there sufficient insurance coverage or should it be increased? Is setting up a registered education savings plan (RESP) in keeping with the parents' wishes and financial strategy? These are just two of the questions notaries will ask.
A notary is the best advisor to help people in situations not clearly defined by current laws make informed decisions.
Since notaries have no commercial interest in any financial product—they do not trade in such products— they are truly impartial advisors who focus on the needs of today's couples and families, whether traditional, single-parent or blended. Their primary role is to help clients seeking to put their affairs in order and to protect their wealth should an unfortunate event occur during their lifetime. This way, parents can fully enjoy the birth of a child!