Investing Resolutions: Resolve to Review Your Will

If you are looking for a financial resolution to start the year, why not make estate planning a priority?

 

Every so often we hear stories about the consequences of not having a valid will. To die without one, known as dying “intestate,” can have significant and perhaps unintended effects as assets will be distributed according to the rules set out by your province of residence. This can result in additional costs to the estate, such as a large tax bill that could have been reduced if better planned for. It can also lead to conflicts between loved ones who are left behind to sort out matters without direction. In addition, other tax-planning or succession plans may be compromised as a result. This would be unfortunate, as a valid will is comparatively inexpensive to put in place. Even if you do have a valid will in place, consider the importance of it reflecting your current circumstances, which points to the need for periodic reviews.

 

As we begin another year, take a look at the checklist below to see if any adjustments are needed to your final instructions. This isn’t meant to be a comprehensive list, but is intended to act as a starting point to determine whether a review might be useful. If you answer “no” or “don’t know” to any of the questions, perhaps a review is in order. It’s time well spent to take steps to ensure the validity of your will for the sake of your beneficiaries. It may also be a great time to review the beneficiary designations for accounts or assets that do not pass through your will, which may include registered accounts or insurance (not applicable in QC).

 

Why not resolve to make your estate plan a priority for 2025? If you need assistance, please call.

 

Estate Planning: You & Your Will – A Basic Checklist

Do I have a valid will in place?
If yes, have I reviewed it since 2020? Many estate planning specialists suggest reviewing estate planning documents every three to five years.
Since last reviewing my will, I have not experienced any major life events. This includes births/deaths, marriage/divorce or a move to a new province or outside of the country.
Are my named executors/estate trustees still appropriate? Check the following: Have they moved away from your jurisdiction? Are they still willing and able to act in this capacity?
Are all of my assets covered by the terms of the will? For example, if you have started a new business, does it require special treatment or inclusion in your will?
Have I planned for potential tax liabilities? Upon death, certain investment accounts may be fully taxable, such as RRSPs or RRIFs. Others may be taxable only on dividends or capital gains. There may be ways to plan for future tax liabilities, such as using a spousal rollover to defer taxes or life insurance to cover the tax amount.
Have I considered ways to reduce probate fees, if applicable (based on province of residence)? In some provinces, this fee could amount to nearly 1.5 percent of the value of your estate.
If needed, have I structured my will to help protect assets and/or beneficiaries? This may be important for blended families, beneficiaries that may not be financially responsible or business owners where potential creditors may be involved.

Seven (Not-So-Serious) Reasons to Skip Estate Planning

These tongue-in-cheek “reasons” may serve as a lighthearted reminder of why it may be wise not to put off estate planning:

• You enjoy paying taxes.
• Your family has never had a dispute.
• You feel the government deserves more of your money.
• You’re convinced you’ll get plenty of warning before anything happens.
• You believe lawyers need extra work for probate disputes.
• Your pet can fend for itself.
• You’re planning to live forever.

Having a solid estate plan is essential for protecting your loved ones and your assets. Don’t leave it to chance.

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(GRAPHIC OF CHECKLIST ALSO REPEATED BELOW)

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