Parenthood: Create a Secure Future

If you don’t yet have a policy, consider that life insurance pays an immediate tax-free benefit to your beneficiaries upon your death—there’s no waiting period or fees involved.

Registered investments — RRSP, TFSA, RRIF — allow you to name a beneficiary, which can reduce any probate fees. But special rules apply if you are naming a minor or disabled child; so be sure to talk to your legal advisor about the pros and cons of this choice.

This is the person who will take care of your children should you and your spouse both pass away. He or she would be responsible for your children’s care, education and general well-being until they reach 18 years of age (19 in some provinces).

A Will outlines how you want your assets to be distributed when you pass away, along with other key instructions about your estate and your family. It’s critical that your Will outlines how your children should be cared for if you were to pass away.

Keep in mind that if you leave assets to a minor child in your Will, they don’t have the legal capacity to receive them. By setting up a trust, you can leave funds specifically for the benefit of your child and appoint a trustee to manage the funds on your child’s behalf.