Mediaboss Marketing

Your iTunes collection really is a matter of life and death, according to a new report on estate planning by BMO Retirement Institute.

Digital assets, alongside caretaking provisions for parents and pets, are named among the top "new frontiers" often overlooked by Canadians when formalizing their final wishes. The report, published Monday, cites the migration of our personal, professional and financial affairs online, the elevated place of pets in families, and longer life expectancy as reasons for the growing importance of these areas.

"Estate planning is evolving way beyond traditional things like completing your will and power of attorney," says Tina Di Vito, head of the BMO Retirement Institute. "Over the last six months, I've come across all three of these topics in our business here."

In a survey of 1,006 Canadians age 45 and older, 36 per cent of people included at least one digital asset in their estate plan. Of those looking after an elderly parent, 34 per cent had designated arrangements for their care only marginally higher than the 31 per cent of pet owners whose companion animals were accounted for in their final plans.

Di Vito says each of these is critical in its own way, though digital assets likely will affect the greatest number of Canadians going forward. These might include electronic banking information (86 per cent of those 45 and older use at least one online financial tool), e-commerce accounts, social media profiles on sites such as Facebook or LinkedIn, loyalty programs, iTunes collections, digital photos and virtual money (think PayPal credits).

"Upon your death, the rules around this type of thing haven't really been established," says Di Vito. "It becomes more complicated for an executor to step in when they're not aware of assets like frequent-flyer miles and grocery points. Those things have value."

When it comes to pets, kept by half of Canadians 45-plus, three-quarters of owners believe it's important to make arrangements for their care but only one-third have actually done so. Di Vito recommends not only designating a caregiver but also including a monetary legacy for that care; Oprah's dogs, for example, are reportedly looking at a $30 million bequest.

More complex are arrangements for a parent. Di Vito notes that even Canadians who don't act as formal caregivers, or pay for caregiving services, need to make provisions for routine tasks that require help say, shovelling residential snow.

"Should something happen to you, who's going to step in?" says Di Vito. "If there's no mention of it in the estate, there's no legal obligation to the beneficiaries to provide that care."

In Canada, 65 per cent of boomers provide some kind of aid to an aging parent, 22 per cent to a relative, 10 per cent to a friend and eight per cent to a step-parent. Fifty-five per cent of that group, however, have not made provisions for that person in their estate plans, with the most common reason cited by two in five being the assumption of outliving them.

See the original post here:
Digital assets, pet care among 'new frontier' of estate planning