Wills Week: What, Why, When and How
It can be daunting to get your ‘affairs in order’. By thoughtfully planning your will, you can make a difference in your life today and secure a legacy. Having a valid, up-to-date will ensure you determine who gets what from your hard-earned assets and who will administer your estate and be guardians of your dependent children. It’s incredibly important!
By learning a bit more, it becomes clear how straightforward will-planning can be. To mark 2022 Wills Week, we caught up with Vanessa Adler from Baker Tilly, who has broad expertise in estate planning.
Originally from Germany, Vanessa Adler, CPA, has been a resident of Canada now for over 15 years, most of which have been here in the Bow Valley. She began work with Baker Tilly Rockies LLP in 2018. She enjoys all aspects of her work with Baker Tilly but, most specifically, her ongoing work with estates. In addition to her work with Baker Tilly, Vanessa enjoys hiking, mountain biking, and snowboarding.
"Being prepared by having a will can also help to minimize taxes, reduce administrative paperwork, and can help you save time and money in the long run."
1. WHAT IS A WILL?
A will is a legal document that gives you an appropriate structure to indicate to your family and friends how your property should be distributed after your death. Fiduciaries are typically named in a will, for example: Executors, trustees, guardians etc.… Additionally, a will can also contain certain conditions. For example, in the case of a person’s death, all the assets will go to the surviving spouse and if there is no surviving spouse, the assets would then go to the children or other designated person. Moreover, any charitable or other bequests can be included in the will.
2. WHY IS IT IMPORTANT TO HAVE A WILL?
It is important to have a will because otherwise you will not have any control over whom your assets should be distributed. Without a will, there are certain rules in place on how the assets will be distributed. Death can happen suddenly and therefore it is always important to be prepared. Being prepared by having a will can also help to minimize taxes, reduce administrative paperwork, and can help you save time and money in the long run.
3. HOW COMPLICATED IS IT TO GET A WILL DRAWN UP?
It can be simple or more complex depending on how many and what kind of assets you have. If your situation is complex, such as you own multiple assets, I would recommend consulting with a lawyer who can help you to prepare the will. If you do not have many assets, no spouse, no children, then there are other options. There are low cost legal forms online and at your local registry that can be used. It is also important to note that every province has different rules and for example, in Alberta, handwritten wills are legal. It always depends on each individual situation what the best method is to get a will drawn up.
4. HOW OFTEN SHOULD YOU UPDATE YOUR WILL? ON WHAT OCCASIONS?
You should update your will at least every five years or when something significant happens in your life such as a divorce or the birth of a child.
5. HOW CAN PEOPLE USE THEIR ESTATE PLANNING TO CONTRIBUTE TO THEIR COMMUNITY IN THE LONG RUN?
One way of contributing to the community through a will is by including donations into the estate planning from the start. There are different ways of doing so. For example, some of the ways you can donate is in the form of cash, shares, mutual funds, or life insurance proceeds. From a tax perspective some methods could be more beneficial than others depending on the circumstances. For example, donating shares and mutual funds in-kind to a charity could have better tax savings. I would recommend consulting with your accountant to determine the best method for your situation.
Learn more about Legacy Planning with Banff Canmore Foundation
BENEFITS OF WORKING WITH BCF IN LEGACY PLANNING:
- We have extensive knowledge of the Bow Valley – our communities and our partners in the local philanthropic sector.
- We will act as a trusted confidante when you are exploring options.
- We can suggest a plan that will steward your financial legacy and honour your philanthropic wishes.
- We are community leaders who are committed to a vision, mission and goals that builds a sense of belonging, inclusion and is committed to positive impact.
WE’RE READY TO:
- Work with individuals to craft a donor-centric plan that will add meaning and richness to the philanthropic process
- Create a fund agreement that clarifies the donor’s wishes, purpose of a gift (present or future) and include any instructions related to recognition or anonymity
- Meet with groups, families, anyone who wishes to understand the range of services offered and options for thoughtful and strategic gift planning
Without a will, there is no mechanism in place to make a bequest. Here are the steps you should take to make sure your wishes are granted.
- Make a list of organizations or causes that you would like to support.
- Make a detailed list of your assets (financial, real estate, vehicles, jewellery, collectibles, musical instruments, etc.)
- Set up an appointment with your financial analyst or attorney, or contact the organization you intend to support.
- Professionals and trusted advisors can help guide you through the process and answer your questions.
