No matter how hard you wish you could live a longer, fuller life with your loved ones by your side, the truth is that none of us are immortal. Even thinking of death consciously is depressing, but not thinking of it at all is a downright mistake. Because once you are gone, what happens to all your belongings collected over a lifetime? What happens to your property, assets, savings and investments? How do you ensure your near and dear ones are well cared for in your absence? These things, scary as they may sound, need to be given some serious thought. Once decided, they have to be put down on pen and paper as a will, which ensures that all your belongings are responsibly distributed or disposed of as per your wishes. But why think of such a dreary future anyway? Why not leave everything to chance or put it off later? Why make a will anyway?

The Problems of Staying Intestate

A will is a legal document that definitively outlines your wishes regarding the distribution or disposal of your property after your death. In a will, you can specify how you wish to distribute everything you owned at the time of your death, from jewelry, real estate, hobby collections, and money to even family heirlooms or private articles of sentimental value.

When a person passes away without leaving behind a will, he is said to have died ‘intestate.’ Dying intestate can lead to various problems, even within the surviving family. From fighting over property rights to deciding about minor kids’ guardianship rights to even caring for the pets of the deceased, every single detail can snowball into a severe argument, often leaving families divided. Hence, making a legally sound and updated will is the best way to avoid future upsets.

There are many other reasons why making your will well in advance – even if you are in your 30s and in the prime of health – is a good idea.

5 Reasons Making a Will is a Smart Move

Here are five significant reasons to decide, draft and keep a legally-acceptable and binding will ready for future uncertainties:

Choosing an Executor of Your Choice

Apart from the emotional blow to loved ones – spouses, children, friends, colleagues – the death of a person brings with it a whole lot of responsibilities. The very first obstacle that your loved ones will face in the absence of a will is who will be the executor (the one who will be in charge of dealing with your estate) or administrator (a person appointed by the court of law to handle your estate) of your will. Ideally, one should name a person of their choice, whom they rely on and trust, as their representative. However, without a will, there is a lengthy legal procedure to determine who will play this role. It causes many delays and, in the case of financial matters, even losses (which could eventually mean financial problems for your kin in the future).

Undesirable Distribution of Assets

Without a will not to highlight your wishes, your assets might be distributed unevenly among your kin. Even worse, things of high monetary or sentimental value could end up being given to people you wouldn’t have wanted to have them. In the case of separated couples, the law could hand over your estate to your spouse against your wishes, as you would still be legally married. In the case of a common-law partnership, your partner could end up with nothing to their name due to the legal differences in marriage and common-law partnership regulations.

Especially sensitive would be the plight of any minor children and even pets – there would be no guarantee that they would be cared for by people you trusted in your lifetime. The confusion over legal guardianship would further complicate matters. It would be better to make a detailed will covering any potential disputes to avoid all this legal back and forth and keep the risk of fights within the family at bay.

Responsibility for Digital Assets

While problems regarding your physical assets may resolve over time, what about your digital presence? Today, we live a good part of our lives online through social media accounts, financial apps and digital instruments, online photo albums, email accounts and more. Managing and deleting this virtual identity is imperative to avoid data leaks and frauds that could affect your family and friends. By making a will, you can entrust the responsibility of implicitly handling all your online accounts to someone you trust.

Formation of ‘Trusts’ for Children

As per the law, minor children cannot directly inherit your estate. So, how do you make provisions for their future? One of the most popular ways is to hold your property in a ‘trust’ wherein you can name a trustee of your choice to look after the inheritance until your child ages. You can also pledge a part of your estate to a charitable institution or a noble cause by specifying so in your will.

Reducing Taxation Problems

It sounds almost comical, but even death cannot free you from taxation immediately. The estate, assets and other gifts you leave behind could also have tax implications for those you have given them to if there is no will. While Canada does not have an inheritance tax, your loved ones would still have to deal with some of your leftover tax obligations, such as your final income tax return or estate administration taxes. But paying the taxes in advance and specifying the provision in your will can alleviate a huge stress point for your family.

One is never too young or too old to make a will. Considering the changing natural and social environments today, creating a will in your 20s or 30s (while you are in your best mental, physical and emotional health) wouldn’t be a bad idea. It is easier to make a will than you think and can be updated and changed as many times as you like. Unlike the old times, even making a will can be done online. However, it is best to consult a legal and estate planning expert before taking any steps.

Contact McCay Duff LLP in Ottawa to Discuss Your Will and For Expert Estate Planning Advice

A skilled tax advisor can help you make a will and even plan your estate most tax-efficiently. They can be your will’s executor to ensure seamless asset distribution. At McCay Duff LLP, our tax experts can provide services to support your tax and estate planning, whether you need partial or complete support. To learn more about how McCay Duff LLP can provide you with the estate planning expertise, contact us online, or by telephone at 613-236-2367 or toll-free at 1-800-267-6551.