What is the difference between real and personal property, and why is it important for estate planning?

In estate planning, there are two types of property: real and personal. Real property includes items such as real estate, land, and buildings. Personal property includes bank accounts, investments, heirlooms, and valuables. If your net worth is significant, carefully consider, with the advice of your financial and legal representative, the power to be granted to your executor with all your real and personal properties.

Personal property held jointly with another person, such as bank accounts and homes, will not be considered part of an estate. They will pass automatically to the joint survivor(s) and not be subject to probate. If there is no joint survivor, they will become part of the estate and be subject to probate.

A beneficiary can be named for insurance policies, investment, and pension plans. When a beneficiary is not named, the funds will become part of the estate and subject to probate fees. Anything that passes outside the estate and is therefore not subject to probate is known as a non-estate asset.

Your detailed, accurate, and complete financial records and documentation of your items will make it easier for the executor to manage your affairs. There may even be savings for your estate, as added expense of lost time and costly fees incurred when your executor needs to search for these items are avoided. I can help you with getting your affairs in order. Please reach out to me.

To learn more about getting your affairs in order, please watch this video: Orderly Affairs Guide.

Interested in learning more about getting your affairs in order?                        Contact Daralynn to talk about a free group Zoom presentation: info@orderlyaffairs.ca

Daralynn Wei
Owner operator Orderly Affairs
Info@orderlyaffairs.ca   or 250.658.4828.
https://orderlyaffairs.ca