"If I could get back my youth, I'd do anything in the world except get up early, take exercise or be respectable."
― Oscar Wilde, The Picture of Dorian Gray
What is a Will?
A will is a legal document that recognized that we do not live forever. It is a written set of instructions about what ought to be done with your material possessions after you are no longer. Everything you own at the time of your demise is generally referred to as your “estate”. By having a will, you can make sure that that your material possessions and personal effects are transferred to the people and organizations that you desire. A written will can also specify who you prefer to be the guardian of any minor children that you may have.
Wills need to comply with certain formalities to be recognized in British Columbia. They should be in writing and signed by the will maker in the presence of two witnesses. There are exceptions to this but this is generally the case. If a will is not made, a common misconception is the government takes away your money. While this has a kernel of truth, the reality is that even for most people who do not make a will, assets will likely transfer to a related person under certain British Columbia legislation which ultimately gives assets to the government if no other person can be located, but rest assured, there are a long line of entitled beneficiaries before the government has the ability to keep a deceased person’s estate.
DO I NEED A WILL?
We are living in more and more challenging times. Recently, we have witnessed one of the most sudden, daunting and worldwide pandemics that caused a significant spike in wills making because of people’s recognition that they are mortal in the face of peril. Studies and surveys consistently indicate that more than half of all Canadians do not have a last will and testament. The importance of a will is something that is often overlooked, as people think “I don’t have enough” or “I only need a simple will” Or “I am too young to create a will”. These are fallacies. Wills provide clarity and are no less than your voice when you are not alive to tell the world what you would like done with your possessions.
A will is one of the most important legal documents that you can have. Although we know that it can be hard to talk about estate planning and to make preparations for what to do when the notion itself may be viewed as troublesome and morbid, the risk of not protecting your assets during your lifetime and making a plan for what will happen when you pass away is more troubling.
What is an Executor?
An executor is the personal representative appointed in a will to look after the will maker’s affairs after death. The executor can be any adult who is at least nineteen years of age. An executor can be and commonly is a relative or one of the beneficiaries. Spouses usually appoint each other as the primary executor of each other’s estate. It is prudent to appoint an alternate executor in case the primary executor is no longer able or willing to help due to that person’s death, ill health or other inability to assist.
The executor should be competent, capable of managing business affairs and someone trustworthy. An executor may also be a trust company or law firm in large or complex estates. Please click here to consider Open Door Law as your Executor.
For a more comprehensive list of what an executor does, visit our executor checklist.
Blended Family and A Will?
Blended families are generally referred to as those relationships, either in common-law or marriage, where one or both partners have children from previous relationships. They may also have children together from their current relationship.
The most obvious issue when it comes to blended family estate planning is that the interests of the spouses will likely compete with one another. One spouse may wish to leave more to their own child than to the other spouse and their children. Other concerns also include death and remarriage, the existence of a separation or marriage agreement, or the needs of the spouse and children.
While this is subject to change, at the present time, the Wills and Estate Succession Act (“WESA”), allows for the first $150,000 of value in an estate to go to a spouse when the deceased person has a child or children from a prior relationship. This amount is increased to the first $300,000 when the only children are the biological children of both the deceased and the spouse.
After the spouse receives a preferred share set out above, the remainder of the estate is split equally between the spouse and the deceased person’s children. For a small number of people this arrangement is satisfactory, but in many cases, it leaves people disappointed and for this reason it is critical for people in a second or other late stage relationship to consider making a will that is fair and up to date.
CAN I HAVE MORE one will at a time?
The Wills, Estates and Succession Act (“WESA”) specifically allows the use of multiple wills in BC and it is a common estate planning tool in the right circumstances.
It is common for example in large or complex estates. Having multiple wills may allow certain assets of a deceased to bypass the probate process, and therefore avoid the obligation to pay probate fees on those assets which can be significant. For instance, if the will maker owns property in a different jurisdiction, it makes sense to set up a second will in that jurisdiction where the property is located for ease of probate and/or expediency in transferring the asset. Similarly, a secondary will is commonly used in estate planning where the value of private shares can be generally transferred without a grant of probate and the payment of probate fees on such shares if a secondary will that meet certain requirements is formed.
Multiple wills require the use of different executors be named in each of the wills as one of the conditions to avoid probate applying on the second will. There are also increased costs in having multiple wills; hence, consult with our lawyers to ensure that probate fees savings exceed the administrative costs of preparing the documents.
We are here to help
If you would like to have a last will and testament prepared, please fill out our online Wills Intake Form, or consider booking a paid consultation with our experienced advisers to go over your estate planning options. Book an appointment »
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