Top 11 Reasons Why You Should Have a Will
Talk to one of our experienced advisors today to learn more about Wills and Life Insurance!
9 minute read
Originally published: January 22, 2022
Updated: August 9, 2022
Top 11 Reasons Why You Should Have a Will
Talk to one of our experienced advisors today to learn more about Wills and Life Insurance!
7 Minute read
Many years ago I created a checklist of items to discuss with all clients I meet. Whether they have come in to discuss their RRSP or retirement plans or review their critical illness insurance and life insurance policies, I have a systematic process of discussion points to ensure nothing is missed. On that checklist, I consider it my fiduciary responsibility that I ask all clients “Do you have a Will?” While I do not provide Will services, as a part of any financial plan I strongly believe it is incomplete without a Will in place. Most often I hear, “Oh that was definitely on our list to do” or “We have been meaning to do one!” The only issue with procrastination of such an important matter is it may turn out to be simply too late. Whether you decide to shorthand on a napkin, complete a do it yourself Will kit online or get professional legal advice, almost any sort of Will is better than no Will at all. While each situation is unique, please find below the top 11 reasons why you should have a Will.
In this article:
- What is a Will?
- Top 11 Reason Why You Should Have a Will:
- What Happens If You Don’t Have a Will
- You Decide How Your Assets Are Divided
- You Control How Your Assets Are Spent
- You Choose Who Will Take Care of Your Minor Children
- Minimize Probate Taxes
- Minimize Probate Fees
- Minimize Probate Delays
- Leave a Legacy
- Name an Executor to Handle Your Affairs
- Avoid the Unexpected Claim
- Avoid the Unintended Recipient
- Frequently Asked Questions (FAQs) about Wills
What is a Will?
A Will is an important legal document that outlines how you would like to distribute your assets in the event of your death, along with detailing who will be the legal guardian of your minor children. Some important parts of the Will include (but are not limited to):
- Designation of an executor
- Beneficiaries
- Detail of how and when beneficiaries will receive your assets
- Authorization of legal guardians for your minor children
Our Top 11 Reasons Why You Should Have a Will list is next!
You might be trying to figure out what is the best way to secure the financial future for your loved ones in the event of your death. Many might ask “What’s the difference between a Will and Life Insurance?” Generally speaking, Life Insurance benefits are granted to the beneficiary when the policyholder passes away. Life insurance can also be paid for over a term, and there are many factors that can affect the amount paid monthly such as the death benefit amount, medical reasons, smoking status, etc, along with different types of Life Insurance depending on specific needs.
On the other hand, a Will is regarding your assets such as your bank accounts, investments, property, etc. A Will allows you to instruct and detail how and when your assigned beneficiary will receive the assets after you pass away. Even if you have Life Insurance, it is still important to have a Will documented in the event of your death. If you’re interested in learning more about Life Insurance, read our post of the 10 Key Reason Why a Person Needs Life Insurances.
Contact Protect Your Wealth today to find out if Life Insurance is right for you.
1. What Happens If You Don’t Have a Will
Not having a Will can jeopardize the future for your loved ones, and create unnecessary hardships. If you die without a Will, your estate is subject to be distributed in accordance with the Ontario’s Succession Law Reform Act, and would slow down the process of your loved one receiving your estate. Furthermore, someone would have to apply to the courts to be granted the right to have authority over administrating your estate. This process is lengthy and unnecessary, and it is important that you protect your loved ones from this roadblock by creating a Will.
2. You Decide How Your Assets Are Divided
Continuing on the Top 11 Reason Why You Should Have a Will in Ontario, having a Will ensures that you decide how your assets are divided and not the courts. Interestingly, in Ontario a spouse is generally entitled to the first $200,000 of assets, before it is divided among any remaining heirs. Any assets above and beyond that are divided between spouse and heirs.
For example, a client is married with 2 minor children, and has an estate that is worth 500K. If they die unexpectedly, the first 200K would go to the spouse, while the remaining 300K would be divided between the surviving spouse and 2 minor children. Due to the fact children are not of legal age, the court could act as trustee of the minor’s share until they reach age of majority, leaving the children’s share of the estate potentially tied up for years.
3. You Control How Your Assets Are Spent
Continuing on with the Top 11 Reason Why You Should Have a Will in Ontario, the example above, beyond the division of assets, you can control how your assets are spent. Perhaps you are concerned with the spending habits of a beneficiary, and would like to control when and how they have access to those assets. Maybe you may want a portion of your assets to be put in a deferred annuity until the beneficiary reaches a certain age. Perhaps you want to ensure your surviving spouse has immediate access to the estate funds. Having a Will allows you to dictate how assets are dispersed according to your wishes, not the courts.
4. You Choose Who Will Take Care of Your Minor Children
A Will provides the ability to ensure you decide who would take care of your minor children. Without a Will, the courts take control and can choose among a family member or court appointed guardian they see fit. Having a Will gives you peace of mind that your children would be raised by someone you see fit.
5. Minimize Probate Taxes
A Will provides the ability to ensure you decide who would take care of your minor children. Without a Will, the courts take control and can choose among a family member or court appointed guardian they see fit. Having a Will gives you peace of mind that your children would be raised by someone you see fit.
6. Minimize Probate Fees
Many people do not realize that certain assets in Ontario are subject to probate (remembering certain assets like life insurance proceeds and segregated funds do not form part of the estate and are not subject to probate). The difference however, is having a Will can significantly speed up the process, thus reducing legal fees and potential executor fees for the estate.
7. Minimize Probate Delays
Without a Will, assets can be tied up in the court systems for months and sometimes years. Having a Will can avoid lengthy and unnecessary delays for your loved ones, while, at the same time, significantly reducing the costs discussed above.
8. Leave a Legacy
Having a Will allows your estate to give a charitable donation to a charity or charities of your choice. This can provide a tax credit to the estate while providing you with an opportunity to leave a lasting legacy.
9. Name an Executor to Handle Your Affairs
Having a Will allows you to decide who Will handle your financial affairs, not the courts. An executor is responsible for, among other items: securing and appraising the value of assets, applying for probate when necessary and paying estate taxes and debts. Given the vital role an executor plays, having a Will ensures you choose a person you trust.
10. Avoid the Unexpected Claim
While anyone can lay claim to the assets of an estate, having a Will significantly reduces the likelihood that an unintended claimant is successful. Having a Will allows the courts to get a much clearer picture of the intended recipient(s).
11. Avoid the Unintended Recipient
Our final Top 11 Reason Why You Should Have a Will in Ontario is that having a Will allows you to remove individuals that may have otherwise been entitled to a portion or all of your estate. A Will allows you to specify exactly who receives the proceeds of your estate.
Protecting your common law partner – In Ontario, common law partners are not provided the same benefit as spouses under the Succession Law Reform Act. In short, a common law partner is not entitled to inherit from a deceased partner’s estate and is furthermore not protected under the Family Law Act as it relates to equalization of property. By creating a Will you can secure your partner from hardships in the event of your death.
Frequently Asked Questions (FAQs) about Wills
A will is one of the best ways to protect your wealth and finances. A will can smoothen the process for your loved one when you pass, as it will help you be able to take direction of what happens with your estate and what should happen with you funeral.
- You can specify exactly who will receive your assets. Who gets what and how much is up to you.
- You can prevent people you don’t want to have access to your assets from obtaining them (like an estranged relative).
- You know who will look after your kids. Courts will make decisions if there is no will.
- Your assets will be accessible to your heirs more quickly and easily.
- You can make plans to reduce the tax burden on your estate. Additionally, you can make gifts and donations to charities, which can reduce your estate tax liability.
A will drafted by a professional in Ontario might cost you anywhere from $300 to $1400.
A will drafted by a professional in Alberta might cost you anywhere from $400 to $1000.
A will drafted by a professional in British Columbia (B.C.) might cost you anywhere from $400 to $1500.
A will drafted in British Columbia (B.C.) might cost you anywhere from $400 to $1500.
A will is a crucial legal document that specifies how you want your assets to be distributed in the event of your passing and names the guardian of your minor children. Among its significant provisions are, but are not limited to:
- Choice of an executor
- Beneficiaries
- Information on how and when your assets will be distributed to beneficiaries
- Legal guardianship of your minor children approved by you
This is the steps to preparing a will:
- Choose your executor after deciding the type of will you want to write.
- Choose your beneficiaries and any specific gifts you want to include in your will.
- Choose a guardian for any dependent children, as well as any pets.
- Indicate any funeral and burial preferences.
- Print out your will and have it duly witnessed and signed (In British Columbia you are permitted to witness and store your will online.)
- Keep your will in a secure location.
A holographic will is a handwritten and signed will, this means that no electrical tools were used to write this will. When considering to write a holographic will, please ensure that:
- You are knowledgeable about the law and are able to craft a will in the appropriate terminology. You are unable to use any of the other available choices.
- You are not permitted to pay for the creation of your will. Your will cannot be signed in front of witnesses.
- You must keep a physical copy of the will (in British Columbia you can store a will online)
- In order to make a legal will, you must be of sound mind and older than the provincial age of majority. If you’re younger than the required age, however, there are some exceptions, such as if you’re married, have children, or are in the military.
- If the will is typed, you must sign it in wet ink in front of two legal witnesses, who must also sign to attest to their presence.
- The will must contain the signatures at the very end.
Contact Protect Your Wealth For Experienced Advice
To conclude the Top 11 Reason Why You Should Have a Will in Ontario, this story might make you think about the importance of having a will. Many years ago, I dealt with a tragic situation where a young mother in Oakville died unexpectedly, leaving behind a minor child and common law partner. She died without a Will. Given the rights afforded to her common law partner, and the age of her child, The Office of the Children’s Lawyer was, and remains involved with most of the assets not accessible to the surviving partner. Perhaps it would have been her intention to leave all her assets to her child in trust, however she unfortunately never got the opportunity to document this. It is important that you avoid this daunting situation by creating a Will to protect your loved ones.
Protect your loved ones by completing a do-it-yourself Will kit or contacting an expert. At Protect Your Wealth, we’ve been providing expert advice for all types of life insurance since 2007. As your trusted Life Insurance broker and financial planner, we work with you to create a plan for your family or business that covers and meets your needs.
Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today. We’re proudly based out of Hamilton, and service clients anywhere in Ontario, including areas such as Kitchener, Guelph, and Milton.
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