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Death? Why this fuss about
death? Use your imagination, try to visualize a world without death! Death is the essential condition of life, not an evil. Charlotte Perkins Gilman |
Not Writing A Will Is The Worse Choice You Can Make
What Happens Without A
Will?
This is what a will is: a written document, signed by the person who made it, with the
signature witnessed by two adults who are not listed as beneficiaries of the
estate.
The will explains how the deceased wishes to divide or allocate the assets of the estate, and takes effect after his or her death.
Here are some choices you have:
1. Write your will by yourself.
It is legal in B.C. to write the will yourself. There are several books and software programs that can guide you, particularly if your estate is not complicated.
A reference guide is provided for B.C. law by Self-Counsel Press, http://www.self-counsel.com/canlaw/bc_willsguide.html .
However, there are many pitfalls in doing it yourself. Check out What Can Go Wrong.
2. Consult a lawyer.
Lawyers and trust companies have experience in insurance, taxation and administering trust funds. The cost of their services may well be offset in the reduction of taxes and related expenses of your estate.
For example, did you know:
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You can defer capital gains on your property, so your surviving spouse won't pay them as long as your spouse lives
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You can reduce or avoid probate fees
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A "rights and things" return can save on after-death taxation
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A beneficiary who is a minor can create serious tax advantages,
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You can defer and reduce capital gains with a careful choice of a year end date for your estate, and
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You can reduce your retirement and after-death tax burden through planned giving to charities and registered societies.
Designating a legal firm or trust company to administer your estate also removes the burden from friends and family. A properly drawn will protects the people you love.
Even
if
you decide to write your own will, it is wise to have a lawyer review
your work.
3. Lawyers
make house calls. Many lawyers also offer the first
half-hour free and will give you a written estimate of costs. Ask for
this.
If you are planning to give to
a charity, a representative of that charity can help you with finding legal
expertise in drafting your will.
4. Don't put it off.
Not writing a will is your worst choice. Should you die without one, your family and friends will be burdened with sorting through and trying to settle your affairs.
Without a will, your estate is
exposed to the severest taxation and you will have no say in the distribution of
your worldly goods.
5. Consider your will's effect on your family.
It is also advisable to consider carefully the impact of your will. When disclosed, it may greatly affect family members and friends you love. Rewarding one child above the others or punishing someone by omission may resonate painfully through your family for years, perhaps creating rifts that can never be healed.
If that is your intention, it is, of course, your choice. But be aware your decisions have irrevocable consequences.
