Review your employment benefits.
For instance, if you have group benefits with attached life insurance, naming a beneficiary ensures that the proceeds go directly to them upon your death. If the estate is named as the beneficiary in the group plan and you do not have a will in place, distribution adheres to the province's succession laws. This may not align with your intentions.
Dying without a will.
Provincial laws, like Alberta's amended wills and succession act, outline distribution plans in the absence of a will. For singles, assets pass to parents, then siblings and their children if parents are deceased. For married individuals dying without a will, assets usually go to the spouse, irrespective of children. These laws don't consider your desires, potentially causing stress and conflicts. Without a will your estate could be subject to a long settlement period as the process works through the system, writing a will and designating an executor greatly streamlines estate settlement and avoid complications.
Key components of the will
Creating a will allows you to articulate preferences beyond asset distribution, such as guardianship for young children and specifying healthcare directives and power of attorney in case of incapacitation.
The Ontario Securities Commission's investor education site lists vital components a will should encompass:
- Personal information like name, address, and the date of the will, ensuring the latest version prevails.
- Naming an executor who understands their responsibilities and has the capacity to manage tasks related to the estate.
- Granting the executor, the right to manage the estate's financial aspects and seek professional assistance if needed.
- Clearly outline how you want financial and personal assets distributed.
- Designating a guardian for children, ensuring it aligns with your wishes rather than court-appointed decisions.
While some might perceive creating a will as costly, it need not be exorbitant. Handwritten "holograph wills" may suffice in some cases but can be legally contentious. Estate attorneys specializing in will planning often offer reasonable fees and are very transparent in the process.