About 80% of the wealth Canadians surveyed in a poll this year said they had a will.  But only 30% had a formal estate plan.

Many people believe that their estate isn't large enough to warrant having a plan.  They're wrong.  Estate planning is for everyone.  It helps ensure that on your death thee's an orderly, tax-effective istribution of your wealth to those you care about.

A basic estate plan includes a will, power of attorney, living will, and proper insurance.  You might also seek professional advice on using trusts to reduce tax for your heirs and to care for your dependants after you're gone. 

1. The will

A will lets you appoint an executor to administer your estate, give instructions for your property, and name a guardian for your children.  Without one, provincial law decides all these important matters.  Wills are especially vital for common-law couples, those naming heirs outside the immediate family, and those with children from previous marriages.

It's advisable to have an experienced lawyer draft your will.  That way, you can be sure that the language and terms are clear and legally enforceable.

Review your will every three years or after any major life change - especially a birth or death in the family, the acquisition or sale of a business, a change in marital status, or a move from one province to another.

2. The power of attorney

A will takes effect only on death.  What if serious illness or injury prevents you - while alive - from making or communicating financial decisions?

To safeguard your interests in this situation, you need a power of attorney for property.  This legal document lets you name a trusted person to take over your financial affairs.

If you are incapacitated and don't have a power of attorney, the provincial government steps in to make decisions on your behalf.  Even your spouse would need authorization to pay your expenses, administer property, and deal with joint contracts such as a home mortgage.

To save legal fees, have a power of attorney done with your will.

3. The "living will"

A power of attorney for personal care, also known as a living will, or health care directive, lets you name someone to make personal-care decisions on your behalf.  You can also set limits now for treatment if you become terminally ill or injured.

These documents are not legally enforceable in every province, but it's still useful for your family and your doctor to know what your wishes are.

4. Insurance

The final cornerstone of a complete estate plan is insurance - life insurance to support your family if you die, and disability insurance to protect your income stream if you're unable to work.

Review your coverage whenever you face a major life change.  Family needs increase as you have children and usually decrease once they're grown.  As your wealth grows, you may want insurance to cover taxes due at death.  Insurance also plays a key role in sound business succession planning.

Make sure you seek professional advice in builing your estate plan.  Accountants, lawyers and financial advisors all have important roles to play in protecting your estate for your heirs.