Why writing a will helped us sleep better!
For years, my husband and I discussed writing a will, yet we kept it on the back burner until recently. Like many couples, we procrastinated and had too many excuses to avoid getting it done. But the longer we waited, the more anxious and guilty we felt. Finally, last year we signed and sealed the document with our lawyer. And let me tell you, having our will in place was a comforting feeling. It was one of the most memorable and pleasing achievements! And yes, we don’t worry about what might happen and don’t dwell about it at night.
Security and clarity
Like many middle-aged couple, we invest in assets to secure our retirement, and offer our childen financial comfort. As a mom in her forties, I constantly wondered what would happen to my children, should the unexpected happen to us – the parents. I mean, it’s natural as we get older to think about mortality and incapacitation especially for parents with young children.
We wanted to make sure that, in case of death, the estate planning would reduce the risk of confusion and ambiguity. We had so many speculations and questions on how the court executed someone’s assets if a will wasn’t present. And who will oversee the payment of bills, credits and mortgage in the event of sudden death or incapacitation. We read many articles, listened to podcasts all of which got us even more confused. That’s when we decided it was time to invest in a legitimate will!
Wills are not an entitlement
Allow me to clarify that we are not a “wealthy” family. Like most families, we are a hard working couple who cares about our hard earned money, and the future of our children. We live simply and put aside money towards a secure future. Writing a will isn’t a privilege for the wealthy only. It is for anyone who has assets like homes, savings accounts (example: RRSP), insurances, jewelry, collections (books for example) and even social media accounts! If you do, then take my advice and work on writing your will. There’s no logic for waiting and the reasons are worth your attention.
Why is a will important?
There are a number of valid reasons why you should seriously work with your lawyer to write a legal will:
You decide how to divide your assets
You get to decide how your estate and assets will be distributed. There’s no confusion as to who gets what. There will be no family feuds and disagreements. As well, when there’s a will, the government, court and banks won’t be stepping in to take charge of how your estate is divided. If you have kids, a will can securely guarantee their portion of the inheritance. As well, you can give your parents a slice of the pie in the will should they outlive you.
You pick a guardian for your kids
You pick who takes care of your minor children. This is a very important decision in the process of writing a will. It lets you make informed decisions about who will be the guardian of your children. Otherwise, the court will decide among family members or select an appointed guardian. As parents, we want to make sure our children are well taken care of by the most suitable family member. Therefore, should something happen to both of us, we know that our children are with a person we can trust to act in their best interest.
Avoid court delays and costs
Another thing we found out about wills is the fact that they help speed up the probate process, which can be very lengthy and costly. Since, in the absence of a will, the court distributes the estate according to law, family members may object and cause unnecessary delays. In most cases, such a situation will require hiring a lawyer. It may not be an issue for some people. But, if you have children and elderly parents, you want to ensure money is distributed fairly and quickly.
You get to pick your trustee and executor
You can also select your trustee and executor of your estate. Ideally the executor is someone you have confidence in their ability to put all affairs in order. For example, paying the bills, cancelling credit cards and notifying the banks, financial advisors, employers, business partners and so forth. This person must be reliable, organized and trusted. This requires some serious planning at your end to decide which executor to appoint.
A trustee is someone who will manage the inheritance (assets and properties). If you have children, this person will be responsible for their inheritance until they reach the age of majority. So imagine if this person was careless with their own finances or doesn’t have time to manage the inheritance. This is, after all, a complex and time consuming title. It is best to ask the person if they are willing to accept this responsibility before appointing them. Sometimes this task can be managed by a financial corporation but not by your financial advisor! We found out about this through our own advisor who we initially asked if he can be a trustee. Apparently this could be considered a conflict of interest between their employer and client!
Basically, you should discuss the title assignments with your life partner, if you have one, and then spend time identifying a fit person for the title. Then ask them if they want the title before appointing them.
Disinheritance
A will enables you to disinherit individuals. Now this is a decision you may act on to ensure your estate doesn’t fall in the wrong hands (such as ex whom you had a bitter divorce). Thankfully, my husband and I didn’t have to disinherit anyone – so far.
Giving authority to the right person in case of incapacitation
Making sure your life partner or children are taken care of in case of incapacitation is something that is included in a will. So let’s say I get sick and do not have the capacity to make sound decisions. With a will, I can assign an executor (my hubby) to take care of my assets and children while incapacitated. Same thing would apply to my husband’s assets if something happens to him. And incapacitation can happen to anyone at any age, so why delay writing a will?
Giving gifts
A will enables you to make gifts and allows your legacy to live on. Let’s say you own an heirloom, you want to make sure they are gifted to the person you have in mind. For example, your sister loves your vintage Chanel bag and you want to give it to her should you pass away. A will helps state that the sister gets the bag.
It’s not written in stone
A will can be updated while you’re alive. People go through lifestyle changes such as births, deaths, or divorce. As well, they acquire and lose assets throughout their lives. Should this happen, you can still get it updated with your lawyer.
Summary
If you don’t have a will in place yet, I highly encourage you to prioritize writing your will through a lawyer. It’s never too early or too expensive to proceed with writing a will. For one, you never know when the end nears. As well, the investment you make into writing a will is reasonable. And after all, what can be more valuable than protecting your loved ones and your estate. Your family won’t have to go through extensive court proceedings and costs. And your inheritance will be fairly distributed among those you care the most about.
