The Importance of Having a Will

May 10, 2023

We spend years working to support ourselves and our families so we can enjoy a fulfilling life and build net worth. Every day we think about how to spend, save and invest our money while also working on paying down debt -- with the ultimate goals of having financial security and building a legacy for loved ones, charities or special causes near and dear to our hearts. Having an updated and valid Will is essential to ensure your estate is distributed according to your wishes.

What’s a Will?

A Will is a legal document that provides instructions on how your assets including properties, cash, investments or keepsakes are to be distributed. Without a Will you are deemed to have passed away ‘intestate’ and your estate will be distributed in accordance with The Succession Act 2019. Under these circumstances, someone will have to apply to the courts to be granted the authority to administer your estate. The downfall to this situation, besides the possibility there may be additional legal costs incurred, is that law will decide how and to whom your estate is distributed.

Some considerations and decisions to make

There are many issues to think through when working on a Will. Here are some of the main items to consider:

1. Who is the executor?

   An executor is the individual who will look after all aspects of finalizing your estate. This could include notifying corporations/Government of Canada of your passing, enlisting a lawyer to assist with the legal aspects, contacting an accountant for taxation filing and distributing the assets as indicated in the Will. When thinking about who to designate as an executor some important considerations include ensuring they are:

   • of age and health to complete the task in its entirety
   • knowledgeable in finance, taxation, and investments
   • reliable and available
   • aware/have personal knowledge of the wishes of the deceased person
2. Who are the beneficiaries of your Will and what assets do you want them to receive?

   Your beneficiaries are the people and organizations that you specifically wish to inherit your assets. Naming them in the Will certifies they will get what you intend them to receive. Ensure you designate specific items that you wish certain people to receive.

   Make a list all your assets and debts, where they are held, the estimated value and who to contact for each item and attach it to the Will. This will ensure the executor knows where to go to bring all the items together -- saving time, reducing expense and ensuring nothing is missed.

3. Children can be a heartfelt factor in estate planning.

   Keep their age in mind. Are they of age of majority to receive the assets and are they capable of managing the inheritance once received? It’s important to think through what you want to happen, should one of your children pass away before you – should there be a provision stipulating who receives their portion? Should both parents pass away and there are children who are minors, what are your wishes for their care and who will be their guardians? Do any of your children have a permanent disability that would require special and specific provisions?

   In this time of extreme sadness, your Will ensures your wishes are followed so your children are in a supportive and loving environment, as well as being taken care of financially.

Some options for completing a Will

Researching and understanding the options for preparing your Will is important. Some options include:

A formal Will, which is a typed legal document typically prepared by a lawyer and signed by two witnesses. With this type of Will, independent legal advice will address any personal and distinct family situations and ensure the rules of law governing estate distribution are followed.

A holographic Will is written entirely in your own handwriting and is signed by you, without a witness. This type of Will may result in misinterpretation of the deceased’s wishes as instructions may not be clear and could be challenged by various individuals.

Do It Yourself Will kits include templates to complete, directions to follow on how to fill in the blanks on the forms and will need two witnesses sign the document.

Before you begin the process of creating your Will, be sure to consider the benefits and any disadvantages the various options.

What is Probate?

Probate is the procedure in which the executor submits the original Will to the provincial court, along with a list of assets and the probate fee to have the Will validated and confirmed as the last Will and Testament of the deceased. This ensures the appointment of the executor.

Everyone encounters life changes and it is essential to create your Will and update it regularly. This is the final document that will ensure your wishes for your loved ones are followed and your assets are distributed in the manner you have prescribed.

FirstOntario Credit Union in partnership with Credential Securities and Credential Asset Management Inc. has an experienced team of advisors specializing in various areas of wealth management including retirement planning, investment management, estate and succession planning, individual financial risk management and more. These professionals are here to help you plan for the future and reach your financial goals. Visit FirstOntario.com/Investments or call 1-800-616-8878 ext. 1700 to connect with a FirstOntario advisor and start growing your wealth today – your way.

Mutual funds, other securities and securities related financial planning services are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc. Mutual funds and related financial planning services are offered through Credential Asset Management Inc. Unless otherwise stated, mutual fund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.