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.
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.