In a recent American Assocation of Retired Persons (AARP) survey, 75 percent of individuals responded that not being able to communicate their wishes would be worse than death. Despite this belief, less than half had taken steps to ensure that their wishes would be carried out.

Although death is not an easy topic to discuss, end-of-life planning can mean the difference between survivors carrying out your wishes or second-guessing them. By drafting a letter of instructions, you can ensure that your preferences are known, help protect your estate, and make decision making easier for your loved ones.

A letter of instructions can be used to record information about important documents, such as a will, power of attorney, insurance policies, and tax returns. It also provides a way to communicate your preferences for funeral/burial arrangements and people who should be notified of your death.

Many people believe that a will is sufficient for estate planning. Although a will is essential for managing the legal matters for an estate, it is not the best place to record personal preferences.

It's important to keep your letter of instructions in a place that is easily accessible to family members, such as the top drawer of your desk. It can be addressed to a spouse, close family member, or trusted friend.

A letter of instructions is not a legally binding document, but it does provide assistance and guidance to loved ones. Consider how this document, as part of an overall estate plan, can make it easier for survivors to manage your affairs after your death.

Items to include in a letter of instructions

Funeral and burial arrangements Service preferences Burial / cremation instruction Location of family records Birth, death and marriage certificates Social insurance number Bank account and financial paperwork Bank location(s) and account numbers Location of safety deposit box Investment account statements Insurance policies Tax returns

Professional contacts Lawyer, accountant, financial advisor Other important documents Will, power of attorney Stock certificates, mortgages

Preparing for your death: We often hear stories of people who die and leave financial problems for their families to settle. Sometimes it's these stories that make us stop and think. Who will take care of my family? What kind of choices will my family have without my income?

Using life insurance as a business succession tool: By insuring the head of a small business corporation or each senior partner, a small business can weather the death of a partner and ensure succession follows the course intended by the entrepreneur.

Death and taxes: Few know how often the two coincide. Canada has no official death, estate or inheritance taxes. However, without proper planning, on death an estate may be faced with large and unexpected tax liabilities. This Taxation Bulletin describes how registered or non-registered (open) investments in mutual funds might be taxed on the death of the annuitant/unitholder.

Household Directory of Documents: The Cornerstone Household Directory of Documents is a record keeping tool designed to allow you to document important information about you and your family.

Getting Advice: We believe that a "Will" requires careful planning to ensure all essential matters are covered. It should also be reviewed periodically and discussed with a qualified adviser or team of advisers to incorporate any changes in your personal circumstances.

Notice: Fiscal Agents Financial Services Group are not engaged in rendering tax, accounting or legal professional services or advice. The comments in this newsletter are not intended, nor should they be relied upon, to replace specific professional advice. Before acting on material contained herein. Readers should seek advice that is appropriate to their personal circumstances from a professional advisor.

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