A Will is a written document, properly signed and witnessed, in which you detail how your assets are to be distributed after your death. It is such an important planning tool for the financial security of your loved ones that everyone should have one. Age is not a factor - if you have assets - you should have a Will.
Why bother writing a Will?
Most Canadians spend their lifetimes acquiring personal property, paying off the mortgage, saving for their children's education, building financial security by contributing to an RRSP or pension plan and looking forward to retirement. However, like over half of Canadians, you might not have planned for the final distribution of those assets that you took an entire lifetime to build.
Estate planning can help you maintain the money you worked so hard to save. You may think that you are too busy living your life to think about death. Your Will is not about death; it is about life - the lives and protection of your loved ones and the appropriate level of support for the organizations that you helped during your lifetime. Some people put off making a Will because they're waiting for life to settle down. They look forward to a time free of unresolved family concerns, decisions, and work problems and so on. Unfortunately, such a time rarely arrives. Your Will is never made. Without a Will, your best intentions and promises made in life may not be realized.
What you do today can make a difference to your own well being, to the future of the people you care about, and to the organizations that you support. The value of having an estate plan can be measured in peace of mind, as well as in dollars. Do the best job you can today, knowing that additions or revisions to your Will can be made in years to come.
Advantages of a Will
Without a written Will
If you die “intestate” (without a Will):
Your savings, investments and other property will be disbursed according to a provincial law, an inflexible and impersonal procedure.
No matter how strong your feelings are about the people and organizations you wish to benefit from your estate, your wishes cannot be fulfilled unless you state them in your Will. A properly drafted Will is the only way to provide an orderly and timely plan for the settlement of your life.
Death and Taxes - two certainties of life
There are no estate taxes or succession duties in Canada. However, taxes upon death have not disappeared. For example, capital gains tax may be an issue for your estate. For Revenue Canada evaluation purposes, all your property - stocks, bonds, RRSPs, real estate, works of art - are said to have been sold at fair market value on the day of your death. Your assets may have grown in value, and these gains become taxable on your death. This also applies to your RRSP if you do not have a spouse to whom you can transfer it. Without an estate plan, you could lose nearly half of the value of the gains to Revenue Canada. While your Executor may claim full personal exemptions on your final income tax return, your estate may end up paying taxes at the highest marginal tax rate.
Estate planning need not be expensive or complicated. Seek the professional advice of an expert to guide you on the financial and legal implications of drafting your Will. If you are considering a gift to an organization that you support, you may wish to discuss your options with an accountant or estate planner. This will help to ensure that you get the most favourable tax treatment possible.
If you would like to know more, or if you would like to make arrangements for one of our volunteer gift-planners to contact you, please contact our Fundraising department at 1-800-563-5483 or via email at plannedgiving@liver.ca or clfdonation@liver.ca.
