TORONTO, ONTARIO — (Marketwire) — 04/30/12 — Estate plans need to evolve to keep up with changing societal elements, according to the new report released today by the BMO Retirement Institute, . The report explores three areas that are gaining attention in the area of estate planning:
“As our society continues to evolve, the scope of our estate plans needs to widen,” said Tina Di Vito, Head, BMO Retirement Institute. “Advancements in technology, the significant role pets play in our lives and the increase in average lifespan mean Canadians must now take into account a number of new elements that, if not properly addressed in your estate plan, may leave your loved ones scrambling.”
Caring for Aging Loved Ones
As life expectancy continues to rise, an increasing number of Boomers are becoming a caregiver to an aging loved one. According to the report, almost 20 per cent of Canadians currently care for an aging parent, with 53 per cent of them providing both personal and financial support. However, if that caregiver dies unexpectedly, and contingencies are not included in the estate plan, the risk of the parent losing quality care could greatly increase. The report found that:
“It-s understandable that the idea of including your own parent in an estate plan seems out of the ordinary but, with today-s aging population, it-s necessary,” said Ms. Di Vito. “Being proactive is critical in ensuring that your loved ones are well taken care of in the event they outlive you.”
Estate Planning 2.0 – Digital Assets
A growing number of Boomers have a personal, professional or financial presence online. This, in turn, has led to an increase in the amount of intangible digital assets that they must manage. Eighty-six per cent of Canadian Boomers use at least one financial online tool. They are actively involved in online areas such as finance, social networking and online data collections including photographs and music. However, Canadians have not been addressing these in their estate plans. According to the report:
Pet Ownership
The emotional attachment to a pet can be intense. As seniors live increasingly longer, pet ownership will likely rise, along with the emotional need to ensure pets are cared for after one passes away. Recently, U.S. celebrity Oprah Winfrey made headlines when it was revealed that her dogs are set to receive $30 million (U.S.) for their care. While few can afford to be that generous, most pet owners would like to guarantee some degree of security for their pets. The report revealed the following:
Ms. Di Vito offers the following estate planning advice to consider:
Have -the Talk-: To help determine how to include aging parents as beneficiaries in your estate plan, have a frank conversation with your spouse, siblings and parents about how to ensure your parents- continued care is not at risk.
Think Digital: Think actively and openly about the digital aspects of your estate plan. Consider consulting your legal advisor about how to safeguard and ensure an orderly distribution of your digital assets to loved ones so they are able to access online financials, close out email and social media accounts and retrieve sentimental digital photos or extensive music collections.
Caring for Fido: Consider leaving a reasonable monetary legacy in an estate to a caregiver who could use the funds to care for your pet. Including this provision will minimize the risk of the pet becoming abandoned or given to a shelter.
To view a copy of the full report, please visit:
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(i)Sources for all data and findings referenced in this release can be found in the report at .
Contacts:
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