May is free wills month

Are you going to live forever? If so, no need to read any further. If you know you will die one day, please read on.

There are certain things that need to be taken care of now, while you are alive. The first step is a will. Prior to meeting with your lawyer or notary, make a list of your assets.

This may include your bank accounts, home, vacation property, RRSPs, RRIFs, TFSAs, stocks and business interests.

Will-planning guides are helpful when making this list. If you are married, some assets may be jointly owned with your partner. May is Free Wills Month People aged 55-plus can have their will drawn up for free by a qualified lawyer. Call 1-888-337-2884. You must contact a participating law firm prior to May 31.

Who should you name as your executor?

An executor, or personal representative, is responsible for settling your estate when you die.

This person carries out your wishes, including gathering together your assets, paying debts and then distributing the balance to your beneficiaries.

Choose an executor who is able to do the job and be sensitive to the needs of your family.

Some people choose their spouse or another family member, friend or business adviser.

Others name a professional trustee, or a trust company, to do the administrative work. If you die intestate Without a will, the courts will appoint an administrator to settle your estate.

Provincial law decides how your estate is distributed and it may take a long time and be very different from what you thought.

If you have dependent children, a guardian is an important person to be named in your will.

This person, or persons, are responsible for your children if you and your spouse die.

In B.C., if not stated otherwise in your will, children receive all inheritances on their 19th birthday.

If you and your spouse die without appointing a guardian, then the guardianship of your children goes to the public trustee.

The Ministry of Children and Family Development become your child’s guardian.

The public trustee becomes responsible for your child’s financial and legal rights and the ministry becomes responsible for your child’s health, education, and upbringing.

Prior to meeting with your lawyer, or notary, here are other points to consider:

– Do you wish to leave any personal property to anyone, such as a vehicle, jewelry or art?

– Do you wish to leave a bequest? This is a gift to a beneficiary.

– Have you considered a planned gift to a charity?

– What are your income tax liabilities and can your estate cover the full cost?

Examples of property that do not form part of your estate and not governed by your will are:

– Property in joint ownership, such as your home, bank account and some investments.

Upon death of one person, the ownership automatically transfers to the other.

– Property with named beneficiaries, such as RRSPs, RRIFs, TFSAs, your individual and group life insurance,

Segregated funds and GICs with a life insurance company can have your spouse, children or a charity named as beneficiary.

– Trusts established while you are living, such as an inter-vivos trust may be beneficial to set up during your lifetime.

There are separate rules governing how the trust property is dealt with upon death.

An important point to note is marriage automatically voids a will unless you make it in contemplation of that marriage and stated so in the document.

Parts of your will are revoked if you divorce after it is made.

Perhaps the most important reason for making a will is consideration for those you leave behind.

A will is neither expensive nor difficult to make and greatly simplifies life for your surviving spouse, family and friends.