The Importance of a Will
You and your family must ensure that your parent has a valid Will. A Will is essential to ensure that wishes are carried out properly and will prevent unwanted complications or misunderstandings if death occurs. All family members must have an open discussion because legal challenges can arise if the document is not properly written. Ensure that you seek the council of a competent lawyer.
What is a Will?
A Will is a legal, signed document that is normally witnessed by two individuals who are present at the signing. The Will can be revised at any time in the future to reflect changes in financial or personal situations. The instructions outlined in a Will only take effect upon death and are in no way binding during a lifetime. For example, if it is indicated in the Will that a painting is to be left to a child but at a later date it is decided that the painting should be sold, the child would not have a claim on the painting. If inclined, it would be important to revise the Will to provide the child with some other asset.
A Will serves two basic purposes:
1. To ensure that property is to be distributed to the beneficiaries according to your wishes
2. To appoint an executor (called a liquidator in Quebec), who is the individual or corporation that will act on your behalf and carry out your wishes.
In addition to the above two items, a Will typically includes the following:
• An outline of the administrative powers of the executor, liquidator(s) and trustee.
• An indication of how you want your estate to be managed and distributed, i.e immediate distributions to your beneficiaries and/or the creation of a testamentary trust to allow distributions at a later date
• Naming of a guardian for minor children
• Instructions to minimize income taxes, if possible
• Specific instructions for the distribution of your personal effects as well as your wishes regarding burial
Your beneficiaries can be any person or entity (i.e. a charity) that you wish to name. Disposition of assets and Wills are a provincial/territorial concern and there may be issues preventing you from excluding from the estate persons such as your spouse, children or anyone to whom you may be providing ongoing support. Dispositions of assets and Wills are a provincial/territorial concern and there may be particular issues that need to be dealt with. Particularly with larger estates it is extremely important to ensure that all your parent’s affairs are in proper legal order.
Please ask me for more information on Wills and Estate planning issues.
Questions to be Addressed
The illness of a family member will affect the whole family. Take the time to understand all of the issues so that you can deal with them and resolve them as a family. Below are some critical questions to address:
• What happens if my mother, father or spouse is unable to make their own decisions?
• Is there a General Power of Attorney in place?
• Who will be in control of the finances?
• How will the cost of care be covered and what funding is available?
• Is there an estate plan?
• What kind of living arrangements are needed? Should we consider in-home or out-of-home care? How can I find out what is available?
• Is there tax relief available if my parent or spouse is incapacitated? Please feel free to contact me to discuss these and any other additional questions that you may have!
Please contact us to find out more!
Barbara Reid's Wealth Management Team
Your personal Wealth Advisor in Hamilton, Ontario
