People decide to downsize for a variety of reasons. It could be that, while you’re still capable of taking care of your home, you just don’t want to do it anymore. Who wants to spend time cutting the grass when you could be booking your dream vacation – you know – the one you’ve been putting off because you had so much work to do around the house? 

Others simply don’t want to keep paying for the upkeep of a large family home when they’re no longer using much of the space. Even if the mortgage is long gone, heat, hydro, and other expenses can add up over the course of the year. A recent trend is people downsizing while they are relatively young so they can make the most of the equity they’ve built so far.

Whatever your reasons, there is an important conversation to keep at the back of your mind. You’re in the midst of a significant life change, and that’s also a great time to make some long-term plans. In this post, we’ll talk about how to integrate estate planning into your downsizing process.

Do you need help with an estate sale in Winnipeg? Learn more about our estate planning specialists right here.

Why Estate Planning Matters

First things first, now is a good time to remind our readers that we are real estate agents, not lawyers, so please don’t take what we are saying as legal advice. That said, there’s no law that states that you have to do any estate planning at all. In fact, the government would probably love it if you didn’t bother with the task. That would mean a vast chunk of your hard-earned wealth would end up in their coffers. 

Estate planning results in more of your financial abundance going to your loved ones, while the government gets less. Since it also makes your passing easier for your family, it’s a win win all around. This isn’t just a topic for when you get older. None of us knows what the future holds, and we all have people we want to love and protect.

It’s not fun to talk about what happens when you’re no longer here. However, planning it out now means no one will be caught unprepared, having to make monumental decisions and arrangements during a time of grief. Another way to think of it is like wearing a seatbelt and insisting your passengers do as well. It’s not that you’re planning for an accident, but everyone is protected regardless. 

Want to know more about estate planning and downsizing? The posts below will give some ideas about what to expect:

• What You Should Know About Estate Sales In Winnipeg
• The Duties Of An Executor Of An Estate In Manitoba: A Comprehensive Guide
• How Can You Help Your Parents Sell Their Home?

Why Estate Planning Matters When Downsizing

In many cases, selling a family home you’ve owned and have built significant equity in can provide you with a high quality of life, hopefully while you are still able to enjoy it. However, time waits for none of us, and everyone should be realistic about what might happen as years go by.

The time could come when you simply aren’t able to take care of a house anymore even if you wanted to. You may also find that you yourself need extra care to handle your day-to-day life. Mental decline is one of the worst things to think about, but if it happens, you want someone you trust to step in and protect your interests. 

At this point, you might consider some kind of Power of Attorney (POA), either for personal care, financial matters, or both. Power of Attorney for Personal Care allows a loved one to make critical decisions about your health care if you are no longer able to. A POA for financial matters can invest on your behalf or even buy or sell real estate in your name. 

Assigning a Power of Attorney is a key step in protecting your future wealth and health, but it’s obviously a decision you’ll want to make carefully. To learn more, check out our post What Can You Do With Power Of Attorney In Manitoba?

Difference Between a Power of Attorney and an Executor

A Power of Attorney and an Executor are two terms that are often used interchangeably; however, they are entirely different legal designations. Both are essential to estate planning. The difference is when their actions are called for. 

• A Power of Attorney steps in when the grantor is still living but no longer willing or able to manage critical decisions on their own. 
• An Executor is responsible for managing the estate on behalf of someone who has passed away. 

The Power of Attorney and Executor are often the same person. If there’s a member of your family who is particularly adept at handling financial and healthcare matters, you might ask them to fulfill both tasks. However, it’s important to remember that the roles and responsibilities are vastly different. 

Why downsize in Winnipeg? Find out in our post, Should Retirees Consider Moving To Winnipeg?

The Fun Side of Downsizing

As a major life milestone, downsizing requires these frank conversations. The good news is that you can move on to the fun part after these details are all ironed out. Now, you can think about what really matters – what you want and where you want to go. Depending on your goals and current lifestyle, the possibilities are almost endless.

• Do you need a little extra help to get you through your day? Many modern assisted living facilities are bright and beautiful while being located amidst beautiful scenery and every imaginable convenience. 
• Perhaps a condo in the heart of Downtown Winnipeg is right for you, where you’re a stone’s throw away from fantastic restaurants and a thriving entertainment scene.
• If a condo seems too small after living in a spacious home, a townhouse can also provide a carefree lifestyle without sacrificing your outdoor living space. 
• Is the snow bird lifestyle calling your name? You might decide to sell your house and leave the city completely, returning only for special occasions and holidays. Your globe-trotting adventures await!

How can you find your community when downsizing in Winnipeg? The posts below will give you some ideas: 

• Everything You Need To Know About Living In Transcona
• Winnipeg’s Southdale and Windsor Park Neighbourhoods: A Perfect Blend of Comfort and Convenience
• What’s The Appeal Of St. Vital In Winnipeg?

Are you curious about what your downsizing path might look like? Our Winnipeg real estate agents can help you explore all of the possibilities. Reach out today to info@goodfellowrealty.com or call 204-224-2551 to start a conversation.