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Wills

A Will forms an essential part of your estate* plan. It is a written document, preferably drafted by a lawyer, that expresses your wishes for the distribution of your assets at your death. It will also deal with any debts of your estate, ensuring that they are paid, including any taxes.

A well-thought-out Will can provide for your family’s needs at death and efficiently distribute your assets to those you wish to benefit from your estate. Without a Will, your estate may not be distributed per your wishes but rather by provincial intestacy legislation, which dictates the distribution of your estate.

Generally, a Will performs several functions. It designates an executor/estate trustee who is the person or institution that will administer your estate.

It sets out the distribution of assets to particular individuals or organizations and controls when and how this distribution will occur. It will determine the age at which any minor or adult beneficiary will receive their share under your Will. It can contain trust provisions for your minor beneficiaries until you desire for them to benefit from your estate. It can make appropriate provisions for a disabled child. It can also address who will have guardianship of your children on an interim basis until a court appoints a guardian for them.

A Will can specify whether debts owing to you at your death will be repaid (possibly through the reduction of a beneficiary’s share) or forgiven through your Will.

Having a Will can minimize the cost of administering your estate and help to reduce or postpone tax liabilities arising at death. From a practical perspective, you will also give your grieving relatives and friends a “roadmap” of how you want your estate dealt with. Having a Will should help ease the matters they must deal with at the time of your death.

When a valid Will exists, probate may not be required. Probate is the court process to validate the Will. There are fees associated with probate, and they vary according to the province where the estate assets are located. When there is no Will, an intestacy results, a personal representative will be appointed by the court, and probate will automatically apply. The estate will be distributed according to the intestacy rules of the province.

Generally, your Will can be revoked or changed at any time so long as you continue to have the capacity to make a valid will. Therefore, it can be modified to fit with your continuing life changes. A Will can be adjusted in part by what is called a codicil or can completely be redone in its entirety.

Finally, your Will should be reviewed or modified every three to five years as a general rule or where life circumstances warrant a change. Life circumstances could include a difference in your financial situation, marriage, divorce, death or birth of a child.

*The entire property of whatever you own at death will be distributed according to your Will.

Source: Manulife Financial

*Disclaimer* Denikings Insurance and Investment Broker does not provide legal advice or services. Please consult a lawyer about any legal concerns.


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