I had lunch today with a friend of mine, who happens to be a Will & Estate lawyer, and we were chatting about the sense of non-urgency clients seem to have when it comes to drafting or updating their Wills.
It’s an item that I am sure we all have on our endless ‘to-do’ list – and something that I am constantly reminding my clients to address during our financial planning meetings – but for some reason or another, according to this article, 56% of Canadians do not have a signed Will in place (even more drastic is the 88% of Canadians ages 27-34 who don’t have Will because they believe they are too young). We all know the importance of regular health check ups with our doctor or regular car maintenance check ups with our mechanic, but when was the last time you took a look at your Will or estate plan? Is it due for a check up?
Not having a will is more problematic than you think. Not addressing this daunting 'to-do' item can cost thousands of dollars in legal bills and bitter family disputes (i.e. family drama leading to legal battles between siblings and/or their spouses). When you die without a will, you are said to die ‘intestate’. Dying intestate means that:
- You can’t choose who your beneficiaries will be;
- You can’t choose who will administer your estate;
- You can’t plan your estate to minimize taxes (leaving more for your intended heirs);
- You can’t choose a guardian for your children.
- In other words, the government decides on how your estate will be settled.
If you fall into the 44% of Canadians who do have a Will, you’re ahead of the gang but need to ensure that you are updating your Will regularly. Most legal professionals recommend reviewing your estate plan every 3-5 years or any time you experience a major life event – such as getting married, divorced, starting, buying or selling a business, the birth of a child, the death of a spouse or changes to your financial position, to name a few. Click here for a great article that outlines when you should be reviewing your Will or Estate plan.