This weeks’ topic is about wills and why you need one.
If you already have one it’s a good time to review it to ensure that it still meets your needs. Financial Planners, Lawyers and Accountants all have their specific areas of expertise and you may need to involve more than one of these specialists if your needs are complex.
The benefits of having a will
With a will, your estate may be distributed in the way you want, to the person or persons you want. The person called upon to settle your estate, however, still has a lot of work to do: gathering information, documents, insurance policies, real estate deeds, certificates, registration forms and other necessary material. A proper will, outlining your wishes and drawn up by a lawyer, makes the job of settling your estate that much easier. Even if your will is very simple it is not recommended to use a “Will kit” to do it yourself because there are some concerns about their legal enforceability. The wording in a will must be very precise and specific.
When to revise your will
Your will should be reviewed periodically when your estate circumstances change, possibly through marriage, divorce, the birth of a child, when you remarry, or when there are changes to the law affecting wills. It should be noted that in most jurisdictions, marriage revokes a will unless the will specifies it was made in contemplation of that marriage.
Disadvantages of not having a will
If you do not have a will, your estate will be divided according to provincial law on estate distribution. Survivors are searched for in a predetermined order until finally, failing all else, the estate goes to the Crown. If your will is not kept up-to-date, part or all of your estate still could be distributed according to law because of the death of someone named in the will.
Power of attorney
While you are in the process of planning your will, it is also a good time to think about your power of attorney. By appointing an attorney now, you allow someone you trust to manage your financial and/or personal affairs if you become unable to act due to illness or disability while you are still living. If you do not appoint an attorney yourself, the government may appoint a public trustee instead. You should have a separate power of attorney for financial affairs and one for health care. If your will was written before 1992 it most likely will not have a power of attorney clause.
Something to remember
Cash will be required to pay for funeral expenses, debts, possibly taxes on death, and administration charges. It's not always possible, however, to convert assets quickly into cash for the value you believe they should have. For this reason, life insurance can be of great help since it provides money for immediate expenses. To fully understand how life insurance can work for you and for your beneficiaries in the event of your death, get together with an advisor.
Who we are:
Barry Altman, PEng, CFP
Barry lives in Meaford, having moved here from Elora almost five years ago. He has over 25 years of experience in private business in a number of fields including finance, sales, design and project management of numerous projects in North America, Europe and South America. Barry is a Professional Engineer and a Certified Financial Planner.
Owen Craig, B.Comm, M.A. Econ.
Owen joined Sun Life in 2008 after spending a dozen years in energy trading. Before leaving Calgary, he was responsible for managing a commodity portfolio worth over $200 million per year on behalf of Alberta consumers. But having grown up in small-town Ontario, he began exploring opportunities to come back this way. When Sun Life approached him about utilizing his skills to develop lifelong financial solutions that work for people, he jumped at the chance to relocate his family to the Georgian triangle.
Note that the information provided in these articles will, by necessity, be general in nature and you should always consult a qualified professional for advice on your specific situation. The opinions expressed are solely those of the authors and do not necessarily reflect those of the companies we represent. The authors retain all rights to publication.
