Are you thinking about planning your estate? Here are 10 tips you should know when writing a will:
1. Obtain the full legal name for all named parties in your will.
The will is a legal document and requires the full legal name of all parties named in the will. You should also have their addresses, birth dates and contact information available when you are preparing your will.
2. Carefully consider who you wish to be your executor
Your executor is someone you trust who can carry on your testamentary wishes. They can be a family member, a close friend, a lawyer, or a trust company.
It is always wise to appoint alternate executor should your preferred executor predecease you or is unwilling and unable to act as your executor.
You should also advise your executor of where you intend on storing your will.
3. Consider who you wish to be your beneficiaries and alternate beneficiaries
A beneficiary is someone who will receive assets from your estate upon your death. As much as we would like to plan for every possibility in a will, things do not always go as planned.
Consider how you would like your estate to be distributed and think about what will happen in the event that your preferred beneficiaries are not alive at the time of your death. If there are no beneficiaries alive under your will, the Wills, Estates and Succession Act will determine the beneficiaries.
4. Your will is not just about assets
Your will is not just about the distribution of your assets upon your death. Many other important decisions may be dealt with in your will such as appointing a guardian for your minor children.
Also, you may wish to create a trust for your minor children or grandchildren which a trustee will manage and administer until they reach a certain age. If you are responsible for someone who has a disability, you may wish to create a trust for them as well.
5. Not all your assets pass through your will
While the distribution of your assets is one of the key features of your will, some assets do not form part of your estate. For example, a life insurance policy or RRSP with a designated beneficiary does not pass through your will and therefore will not be subject to probate fees.
6. The will also addresses trustee responsibilities
The will provides your trustee with instructions on what they are authorized to do when they are handling your estate.
For example, your will can grant the trustee the power to pay off debts, taxes, mortgages and funeral expenses among other things.
7. Your will can include your funeral and burial arrangements
Determining your final resting place can be a difficult burden for your close family and friends.
By including funeral and burial arrangements, not only does it assist by providing your executor with clear instructions to carry out your wishes, it also alleviates the difficult and possible contentious discussions between your friends and family.
8. Your will must be witnessed by two people
When signing your will, two witnesses who are 19 years of age must be present and who are not beneficiaries of your will.
If a witness is a beneficiary under the will, the gift could be declared void.
9. Your will is not the only part of estate planning
Your will is an important document that is created to determine what will happen to your assets when you die. However, there are other key documents that form part of your estate plan.
A Power of Attorney gives a person of your choice the authority to act on your behalf on legal and financial matters when you are no longer capable of managing your affairs. A Representation Agreement allows you to appoint a representative to make health and personal care decisions on your behalf.
An Advanced Directive allows you to specify your wishes regarding health care and your preferences regarding treatment when faced with serious illness or accident.
10. Your “last will” can be updated should your wishes change in the future.
When estate planning, it is difficult to anticipate all the different scenarios that may occur in the future. Just because your will is called your “last will” doesn’t mean it is irrevocable. When you update or create a new will, you revoke any previous wills you have made in the past.
At M.J. O’Nions lawyers & Mediators we have extensive experience in drafting Wills and Estate Plans. Should you require our assistance in drafting your estate plan kindly give us a call at 604.449.7779.