Where there’s a will, that’s good

Most people know the value of having a will, but I am still surprised by how many people don’t have one. Dying without a will means you have absolutely no say about any of your assets or care for your children once you die.

There are many basic will kits available and although they are very generic and simple, they can be suitable for those Canadians on a tight budget. Even a handwritten letter of direction can be effective if it is signed and has two witnesses.

However, if you have more specific instructions for alternate arrangements, guardianship for minors, debt forgiveness or explicit instructions after your death, you may wish to have a lawyer prepare your will. It is always a good practice to seek legal advice.

Let’s look at some of the immediate issues that will arise should you die without a will: First, the Canadian government will immediately become the executor of all your assets: homes, bank accounts, investments, personal belongings, everything you own.

The government will then freeze all access until they have completed a full audit, which may take three to nine months.

Once your estate assets have been audited, all fees and taxation will be deducted before any disbursement to family.

A surviving spouse is entitled to the first $200,000, with the remainder to be split to all those family members the government believes have a claim.

Getting a will is the most important and most responsible thing you should do to ensure your hard-earned assets and wishes are taken care of when you die.

Don’t leave it up to a stranger at a government office to make decisions for your family.

You should also consider getting a power of attorney for property and medical direction.

This is your opportunity to leave your mark. Remember it will be your “uninterrupted final message” when you die. Make sure you have control — get a will!

Christine Ibbotson is author of Don’t Panic: How to Manage Your Finances and Financial Anxieties During and After the Coronavirus and How To Retire Debt Free & Wealthy. askthemoneylady.ca