Last Will and Testiment
The Importance of Having a Will
Nobody likes to ponder their own death. However, death is inevitable (at least until someone makes some huge scientific breakthrough). If you die without a will, your assets, which includes your money, possessions, real estate, investments etc., get paid out to your beneficiaries according to the laws that are in place when you die. Those laws are not affected by any wishes you may have had beforehand. By preparing and signing a valid will, you get to decide how everything that you have worked so hard for will be distributed. It also allows you to do some estate planning, which may limit some taxes payable on death.
Why You Need a Will
The government has a default system for people who die without a will. Having a valid and enforceable will ensures that you, and not the government, decides how your assets are distributed. While the default regime might be ok for some people, it is rarely the best system for most people. Furthermore, appointing an executor under the default regime is often much more expensive, and may even require court appearances. That erodes the assets that you have worked hard to acquire. Your will sets out what happens to your assets when you die. You can even set up trusts to ensure that someone financially responsible has care of assets for underage children. It allows you to do some pre-planning to try and reduce taxes on death. In addition, your will should include a plan setting out what happens in the event of a tragedy in which you and your close loved ones perish tragically at the same time.
Beneficiaries and Executor
Your beneficiaries are the people or charities who will receive your assets on death. Your executor is the person/people (or company) that administers your estate; they pay your debts, collect your assets, pay any taxes you may owe and so on. The person you choose as executor should be someone you trust to handle your finances properly and to distribute your assets to your beneficiaries. You should also name an alternative executor in case your primary executor is unable or unwilling to act. Be careful about naming a foreign executor (being anyone who lives outside your province) as it may cause more headaches than it is worth.
Speaking with a Lawyer
It is a good idea to speak with a lawyer before you write your will as they can help you plan your estate. Your lawyer should be able to answer any questions that you may have and will help you navigate the legal side of death, making it easier for you to have peace of mind about the people left behind after you have passed away. A lawyer will help ensure that your will does not have errors, discrepancies, or ambiguities, with a view to reducing conflict surrounding your estate after your death.
Your Final Wishes Matter
Your will is important because your final wishes matter. It is your decision what you do with your assets and finances and the will is a legal way of ensuring that things are divided according to what you want and not what someone else (i.e. the government) might provide for. A will is a critical document which ensures that your wishes will be met after you pass away. Be sure to speak to a lawyer if you do not yet have a will, or if you have a will but have experienced any significant personal changes, or if it has been awhile since you last had your will updated.