This January, I want you to review your Will. But don’t do it by yourself. Have it reviewed by someone who has worked with many executors and has help probate many Wills. I’ve seen some great Wills and I’ve seen some nightmare do-it-yourself Wills.
And if you do not have one, get one! I can recommend some lawyers in the area.
For residents of Ste Anne and surrounding area, every Saturday in January from 1-3pm, I am offering free 30-minute scheduled appointments to review your Will (and your Power of Attorney and your Health Care Directive). I can give you the thumbs up that everything on paper is great: executor(s) and beneficiaries in your Will, your attorney(s) for your Enduring Power of Attorney, and your medical decision maker(s) or proxy(ies) for your Health Care Directive.
Or I can recommend some changes and advise on how to make it happen.
Why am I doing this? To save your family time, money, and anguish.
And my personal mission: to ensure everyone has a Health Care Directive for their end of life. I believe a proper Health Care Directive is one small way to save our health care system. You will likely spend the most time of your life in hospital or long-term care just before you die. So, if you want to keep it as short as possible, think about it, talk about it, and get it on paper.
Everyone needs a Will
A Will is a crucial legal document that outlines how a person’s assets should be distributed after their death. Despite its importance, nearly 50% of adults don’t have a Will, potentially leaving their loved ones in a difficult situation. And for those of us 55+, 25% still do not have a Will! What are you waiting for? I have helped many survivors apply for Letters of Administration. It would have been way better if they had a proper Will.
Creating a comprehensive plan ensures that your final wishes are respected and can prevent family conflicts. It also provides peace of mind, knowing that your affairs are in order.
Choose your executors carefully
The executor is the person responsible for carrying out the instructions in your Will. Choose someone trustworthy and capable of handling financial and legal matters. It’s wise to name an alternate executor in case your first choice is unable to serve.
Executors administer your last wishes, such as obtaining probate – which gives them access to your money – closing bank accounts, settling bills, and the sale of the family home.
You may be risking family harmony and delays if executors and beneficiaries are at loggerheads. If your adult children do not get along, beware making them the executors of your Will. Fighting executors can cause significant issues and delay the administration of your estate.
Other tips are to choose the executor or at least an alternate executor from a younger generation, who are financially responsible and can remain neutral, and if you don’t have anyone you trust then appoint a professional.
Beneficiaries
Beneficiaries are the people or charities who receive your assets. List all beneficiaries clearly, using full legal names, and their relationship to you. Be specific about what each beneficiary will receive to avoid confusion. include alternate beneficiaries in case your primary choices are unable to inherit.
Guardian for minor children
If you have children under 18, name a guardian to care for them. Choose someone you trust who shares your values and is willing to take on this responsibility. It’s important to discuss this decision with the potential guardian beforehand. Consider naming an alternate guardian as a backup. And you can name a recipient of accounts if the executor and the guardian are the same, so someone else is reviewing the financials to ensure what is best for your children.
Pets
If you have pets, specify who should care for them after your death. Include details about any funds you want to set aside for their care. Be sure the person you choose is willing and able to take on this responsibility. Consider naming an alternate caregiver for your pets as well.
Digital assets
Include instructions for handling your digital assets, such as social media profiles, email accounts, photos stored online, subscription services, and cryptocurrency. Provide information on how to access these accounts. Specify what you want done with each digital asset. Remember that some platforms have their own policies for handling the accounts of deceased users.
Specific financial or valuable bequests
List any specific items you want to leave to particular individuals. Be very clear in describing these items to avoid any confusion. Include the full name of the person who should receive each item. Consider what should happen to these items if the intended recipient is unable to accept them.
Disinheritance
If you wish to disinherit someone who might otherwise expect to inherit, state this clearly. Explain your reasons to help prevent challenges to your Will. Be aware that in some cases, like with spouses, complete disinheritance may not be legally possible.
Residuary estate
The residuary estate includes any assets not specifically mentioned in your Will. Specify how you want these remaining assets distributed to family and/or charity.
Assets and property
Not necessarily to include in your Will, but for your executor: provide a detailed list of your assets, including real estate, vehicles, and valuable personal items. Include information about where to find important documents related to these assets. Remember to update this section if you acquire or sell significant assets.
Remember that life insurance and pension payments are often NOT covered by your Will if they have named beneficiaries. The destination of those monies needs to be understood and tailored to your wishes.
Jointly held assets (other than spouse) may be considered estate assets and distributed according to your Will unless you formally document other wishes.
Personal Belongings
You can create a separate list for what happens to some of your personal belongings that may not have much financial value but may have sentimental value to you and your family. Create your own list and sign and date it and keep it with your Will. Ensure your executor knows about it.
Funeral wishes
Your preferences for funeral arrangements or informal gathering should not be in your Will. Be clear about whether you prefer burial or cremation. If you’ve made pre-arrangements (paid or unpaid), include those details for your family and executor and discuss with them. If these wishes in a Will, it may be read after funeral arrangements are made, so communicate them to loved ones.
Blended families
Second marriages or common-law relationships need careful consideration. A Mutual Will Agreement may ensure your desired assets will eventually go to your respective children regardless of who dies first. If you get married, your Will is automatically revoked unless made in contemplation of marriage.
Signatures and witnesses
Ensure your Will is properly signed and witnessed according to Manitoba laws. Manitoba requires two witnesses who are not beneficiaries. For Wills to be valid, the signing process has to follow strict rules. If you don’t follow the rules, it may cause delays and may cost more to get probated. You normally do not save any money by doing it yourself. I know. I have seen too many that have tried.
Get a Will!
The most important tip about Wills is to make one in the first place. And as your marital status changes: common-law, married, separated, widowed, review it immediately to see what may need to be changed or revoked such as executors and beneficiaries.
Happy New Year! Bonne Année! Godt Nyt Aar! Feliz Ano Novo!
Anni Markmann is a Personal Income Tax Professional and Certified Financial
Planner; living, working, and volunteering in our community. Contact Ste
Anne Tax Service at 204.422.6631 or 36 Dawson Road in Ste Anne (near Co-op) or info@sataxes.ca