Mortgage Watch

A will is a vital element of estate planning, but many people do not know why. A will is a document that speaks in your name after your death.

It transmits your last wishes and allows you – you, and not the State - to identify the persons to whom you will leave the assets you have accumulated during your lifetime and, more importantly, the person(s) who will take care of your underage children if both parents die.

A will facilitates the administration of your estate; you could save income taxes and avoid the serious consequences of dying without a will. Yet, despite the importance of wills, it is estimated that only half of Canadians have one.

This is alarming when one considers the benefits that a will provides and the relatively low cost of its preparation. We work very hard to accumulate wealth, so why not ensure it will not be wasted?

Protection for your family or your business

A will is the basis of an estate plan. A will properly prepared means that your assets will be distributed as per your wishes and that loved ones will benefit, unburdened by taxes. You can avoid unnecessary costs, endless payment settlements and the consequences of a State will.

You can also choose your estate executor and the guardian of your children. Given that the preparation of a will costs a few hundred dollars and knowing the potential consequences of the absence of such a document, it is obvious that everyone should have a Will.

What to do after having written a will?

Once your will is drafted, you must regularly review and change it whenever an event occurs in your life or the life of your heirs: marriage, divorce, birth, death, disability, new career or other major event. Note also that in most provinces, but not in Quebec, marriage annuls an earlier will unless specified otherwise.

A will must also be reviewed as soon as changes occur in laws governing income, family or inheritance taxes. Ideally, to ensure that it still reflects your intentions, a will should be reviewed annually or every two years, even if no major change has occurred.