Let’s admit it, creating a will is not the most exciting task and often gets procrastinated because, as humans, we don’t want to think about the idea that something bad could happen to us. However, creating a will is one of the most important aspects of your overall financial plan. Here are some things to think about to make the process less intimidating.
When is the Right Time to Make a Will
There is no right time to make a will but experts say that a good time to start thinking about creating a will is when going through a major life event such as a marriage or having children. You may also want to start thinking about a will if you have any pets or are starting to accumulate a significant amount of assets.
Things to Think About Before Creating a Will
There are a number of things you will want to consider before documenting or finalizing your will (this is not an exhaustive list). I would argue this piece takes longer than creating the will itself.
1. Guardian – if you have dependents or pets, you will want to think about who will look after them if something happens to you. You will also want to make sure have the conversation with the chosen guardian prior to placing them in your will.
2. Executor – this is the person that carries out your wishes in your will, such as administering any payments, filing final taxes, closing the estate etc. This is a very important responsibility and is usually a spouse or family member. Again you will want to make sure you have the conversation with this person prior to finalizing your will.
3. Beneficiary(ies) – this is the person/people that are named in the will as receivers of your assets. This could be friends or family as well as charitable organizations.
4. Gifting Items or $ – You may want to gift specific items (e.g. vintage car or designer purses) or gift values (e.g. $5,000 to each niece/nephew). Instead of splitting your assets by a %, you can additionally add in specific requests.
5. Assets – Before creating your will, you will want to think about the total value of your assets as well as keeping a list of all the locations your money is being held (gone are the days where you only have one bank account). You don’t want to include account numbers and passwords but instead the name of the company so that your executor can reach out if needed.
6. Final Wishes – Although typically not legally binding, this helps your loved ones know and respect your final wishes. At an emotional time, I like to think of this is reducing the burden on the ones left behind. You don’t want to leave additional stress for them to try and guess what your wishes would be. Now, there are so many different options for funerals, memorials and celebrations of life, you want to ensure you are honouring your loved ones in the way they wanted.
Do you Need a Lawyer or is an Online Will Suffice?
You will want to do your own research but, for the majority of Canadians, an online will is a great option. You may want to consider speaking to a lawyer if you have a complex family or financial situation and, as a result, want additional legal advice.
Things to Remember When Writing a Will
Some things to remember when writing or updating your will:
1. You will want to get proper signatures and witnesses – this may differ from province to province, so please review and understand the laws in the province you create your will to ensure it’s legally binding.
2. Tell you executor (or a trusted person) where your will is located. For example, if you create a will and put it in a safe and nobody knows the code to the safe, they will not be able to access it. Keep it in a safe place and tell your executor where they can find it.
3. As mentioned previously, it’s not required but helpful to include an asset list of where all your assets are stored (e.g. life insurance, employer retirement accounts, savings accounts, investments).
4. If you already have a will, you will want to re-visit your will if you have a significant life event such as a marriage/divorce, children or want to change or add beneficiaries.
5. Have the conversations with the ones you love. Having unfortunately gone through a death in my family recently, it’s important to have these conversations up front so that there are no surprises and so that you can focus on the important things like grieving the loss.
The Emotional Side of Writing a Will
I just created my will last summer (2022) and have to say it was very difficult. This is likely one of the key reasons people put it off, it’s just one of those things that nobody wants to talk or think about. Because I don’t currently have a partner or children, I was left wondering what will happen to my assets and belongings when I am no longer here. So, I recommend blocking off some quiet time to think about it, do it in a few stages and if you need support, gather some friends or family to do it together. As hard as it can be to, the key motivator for me is that I don’t want to leave that emotional burden on my family if something were to happen. And that money can be used as a tool to make others lives better so it’s best to go to someone you love or a charity you are passionate about.
My Personal Review and Recommendation
I wrote my personal will in 2022 by using Willful. I used them for a few reasons – I have a fairly simple personal situation, I did my research into online wills and trusted the recommendation, and the cost was reasonable and much cheaper than using a traditional law office. The most pleasant surprise for me was how easy the platform was to use and that the questions were not written in a legal language. The terminology was written in layman’s terms but the final product is a legal will. For more detailed information and a thorough FAQ, I suggest you review their website.
The cost of Willful is $189 for Premium Coverage (Best for Individuals) and $329 for Premium Coverage for Families.
If you are interested in using Willful to create your own personal will, SIGN UP HERE to get 15% off!
Disclaimer: you will want to do your own independent research to ensure an online will is right for you or if you need additional independent legal advice for your personal situation.