Why you need a Will: Protecting your legacy and loved ones
In Canada, preparing a will isn't always at the top of our to-do lists. However, this simple yet crucial document plays a vital role in ensuring your final wishes are respected and your loved ones are protected. Let's explore why having a will is so important and the potential consequences of not having one.
The power of a Will
A will is more than just a legal document; it's a roadmap for your legacy that allows you to:
- Communicate your intentions clearly
- Decide how your assets will be distributed
- Simplify the administration of your estate
- Potentially save on taxes
You've worked hard to build your wealth. Doesn't it make sense to ensure your interests are preserved even after you're gone?
Dying without a Will
If you pass away without a valid will, you're considered to have died "intestate." This means:
- The court appoints someone to administer your estate
- Your assets are distributed according to provincial intestacy laws, not your wishes
- Your estate may face delays and added costs
- There could be unintended consequences, such as estranged spouses inheriting parts of your estate or young adults receiving large sums prematurely
For common-law partners the situation can be even more precarious. Without a will they may be left with very little, as their rights under provincial estate laws can be limited.
Crafting Your Will
While it's possible to create a holograph (handwritten) will or use a stationary will kit, these options can lead to issues with interpretation or non-compliance with provincial requirements. The best approach is to work with an experienced lawyer to ensure your will is properly drafted and legally sound.
The process typically involves:
- Listing your assets
- Deciding how your estate will be divided
- Choosing an executor
- Naming guardians for minor children
- Outlining any special instructions or funeral arrangements
A will isn't a "set it and forget it" document. It should be reviewed regularly and updated after significant life events like marriage, divorce, births, or deaths in the family.
Protecting your family's future
A well-crafted will does more than distribute assets; it protects your family's future allowing you to:
- Provide for your loved ones in the way you see fit
- Choose guardians for your children
- Minimize potential family disputes
- Reduce the tax burden on your estate
According to a study done by Canadian Lawyer magazine in 2021, the average cost of a Will in Canada was $624. When you weigh that cost against the potential consequences of not having one, the decision becomes clear. The protection a will provides far outweighs its cost.
Act today
We take great pride in working with our clients to ensure they have a financial plan that achieves their goals and manages their risk. Which is why we always sponsor the importance of a will to secure their legacy.
If you don't have a will, now is the time to have one prepared. If you do have a will, review it regularly to ensure it still reflects your wishes.
A will is the cornerstone of a comprehensive estate plan. By creating one, you're not just putting your affairs in order; you're providing a final act of care for those you love most.