The Tax Chick Podcast So... what is estate planning anyway?
Aug 22, 2025
Unravel the mystery of estate planning! Discover the essential documents like wills and powers of attorney. Learn about the 'little' tax of probate and the 'big' income tax implications upon death. Find out how to ensure your loved ones aren't left in a financial bind. Explore the concept of a 'death folder' for both practical and emotional needs. Plus, get tips on managing passwords for digital access. It's all about preparation and communication—start planning early for peace of mind!
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Prepare Core Legal Documents Early
- Create core estate documents: a will, a property power of attorney, and a health-care directive.
- Prepare these documents early so a court application isn't your only option if you lose capacity.
Do An Investigation Stage First
- Conduct an 'investigation stage' to gather all agreements, bank documents, and trustee details before drafting your estate plan.
- Request actual statements from advisors and review shareholder, partnership, and financing agreements for death or disability triggers.
Little Tax vs Big Tax
- Think about both the 'little tax' (probate fees) and the 'big tax' (income tax on deemed capital gains at death).
- Probate avoidance isn't always worth it and income tax often creates the larger financial issue for estates.