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* Editor's note: This is the last part in a three part series about the stages of retirement

For many retired Canadians, health becomes a greater priority at this time of life.

Many expenses, such as drugs and physiotherapy, may not be fully covered by provincial health care. As your healthcare costs rise, you will need to adjust your income to meet them.

It's also important to consider the possibility of long-term care for you or your spouse.

Many seniors need some kind of assisted living at some point, ranging from help with household duties to full-time residential care.

Long-term care insurance can be a cost-effective way to ensure that you and your spouse can afford the level ofcare you need for as long as you need it.

To ensure that you have sufficient funds available to cover any potential new or increased living costs, it's a good idea to hold a proportion of investments that provide income, and that are liquid.

As in your earlier years, keeping your Will and Powers of Attorney, or Mandate, current is essential. You may also want to share the contents of these documents with your family and any other beneficiaries.

Making your wishes known, and explaining them to your loved ones, may reduce the likelihood of family conflict in settling your estate or managing your affairs should you become incapacitated by illness or injury.

Your estate may well have grown over the years. As a result, it could attract substantial capital gains tax upon your death. Depending on where you live, provincial probate fees may also be substantial.

Your financial advisor can help you explore affective strategies for reducing potential income tax and probate fees while preserving the desired plan for distributing your estate.

Your executor can play a key role in minimizing the taxes that your estate has to pay.

It's crucial that the person you appoint as your executor knows the responsibilities involved, and is willing and able to fulfill them, throughout the settlement process.

For example, the executor's responsibilities may include taking the Will through probate, settling debts, preparing the final taxreturn, selling or managing assets, distributing assets to beneficiaries - even arranging the funeral.

If supporting charitable organizations is important to you, be sure to investigate the many tax-effective ways to donate both during your lifetime and through your estate.

These include cash donations made during your lifetime or as a bequest in your Will, donations of eligible securities, gifts of life insurance, and Charitable remainder trusts, where you donate property that you can continue to use in your lifetime.

Seeing your money helping those who need it most can be a rewarding experience.

Retirement is a journey, not a destination.

* David Konning is an investment and retirement planner at Royal Bank. Financial planning services and investment advice are provided by Royal Mutual Funds Inc., a member company under RBC Investments. If you would like to reach him, please e-mail him at David.Konning@rbc.com or phone 856-0406. The material in this column is intended as a general source of information only, and should not be construed as offering specific tax, legal, financial or investment advice.