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Advice on writing your will
Not having a proper Will in place can cause unnecessary grief for family members at an already stressful time. The good news is making a Will is not expensive or difficult.
Here are some tips to consider:
NAME AN EXECUTOR
A Will allows you to name an appropriate executor. Being an executor is a serious commitment and unfortunately, executors often accept the appointment without fully understanding the role. When choosing whom to name as executor, consider someone who is: • familiar with the duties and responsibilities of an executor and has time to carry out the duties • impartial in case there is a dispute • is aware there is the potential for personal liability
NAME A GUARDIAN FOR MINOR CHILDREN
Parents need to decide who is best suited to care for their children and name this person as the guardian. The responsibilities of guardian include: the supervision, care, control and custody of the child. However the guardian does not have the power to manage the child’s property. Although all guardianship appointments must be ratified by the court, parent’s wishes are taken into account and given strong consideration. If a guardianship has not been named, the court will appoint the guardian.
NAME YOUR BENEFICIARIES
You can determine who will benefit from your estate, the amount, and when the beneficiaries will receive their gift. Some considerations to think about include: • whether you release the gift immediately or place it in a trust account • how to disburse personal effects and collections • how to disburse real estate or will all assets be sold and the cash distributed amongst family members or charities? • ensuring beneficiary designations on registered plans such as RRSPs,
RRIFs, TFSAs, and insurance policies are who you want them to be
ESTABLISH TRUSTS
A Will is one method of establishing a trust, since you may be concerned about caring for a spouse, a dependant child, a disabled beneficiary, a family member with addiction or spendthrift issues, safeguarding assets for future generations or providing ongoing funding to a favourite charity. A well-constructed trust is a useful and powerful estate-planning tool.
WORK WITH PROFESSIONALS
Working with a reputable estates and trusts lawyer and an accountant can provide greater opportunities to minimize taxes on your death.
Writing your own Will or using a Will kit may work for some, but caution is necessary. If there is any question about whether your can write your own Will or use a Will kit, you should err on the side of caution and see an estate and trust professional for estate planning and an estate lawyer to draft the Will. The money saved by writing one’s own Will or using a Will kit can potentially be offset by the legal fees and family disharmony incurred if the Will has to be interpreted by the Court.
CHARITABLE GIVING
A Will can allow you to continue your support for a favourite charity. Bequests to charities can take many forms such as: • Cash donation either a set dollar amount or percentage of the estate • works of art, or other valuable donation • establishing a charitable annuity, trust or foundation • shares • funding the gift through life insurance
It is important to use the charity’s full legal name and charitable registration number. The Will can specify how funds may be used, and what is to become of the gift if the charitable organization has changed its name, or is no longer in existence.
PLAN AHEAD AND REDUCE THE POTENTIAL FOR DISPUTES
A properly prepared Will, lessens the possibility of Will challenges and family disputes. This is especially true if the Will maker lets their beneficiaries know how the estate will be distributed, and why. This alleviates a great deal of stress when the time comes and the terms of the Will become known to the family.
It is also important to remember that people’s lives and their personal situation evolves over time. Having an up-to-date Will ensures their Will reflects their life changes, whether it is because of birth, death, new relationships or relationships that end. It’s a good idea to review your RRSP, RRIF and TFSA beneficiaries annually.
Access Credit Union can connect you with an estate and trust specialist to answer the many questions you may have about the estate planning process and the value of having a well-drafted Will. The financial planners at Access Credit Union can work with you on estate planning, succession planning, and financial planning.
