The importance of having a will
Most people can agree that having a will is important. However, opinions divide when it comes to determining how much of a priority a will should be. Some believe a will is a document to be signed when you are close to death. According to a survey conducted by CIBC, almost half of Canadians do not have a will.
It’s a weird statistic when you think about it. Is the plan to not die? I don’t get it. Your death isn't too much fun to think about, but ignoring it doesn't make it go away.
When to make a will
If you are single with no dependents, you can take some time. But once you get married, and especially after your first child is born, you need to find an estate lawyer and have a will drawn up. It is the perfect opportunity to spell out exactly what should happen to your assets in case you die, and what should be distributed to your loved ones.
I usually advocate for frugality but on this one, expect to pay some good cash. Sure, there are do-it-yourself will kits and software out there and they may look like a good idea, but they’re not. Wills come under provincial legislation and every individual has their own unique circumstances. So, forget the software and expect to pay $300 to $500 or more to a lawyer, depending on how complex your situation is.
In his book, How not to move back in with your parents, Rob Carrick recommends deciding which of your family members or friends you want your kids to live with before going to the lawyer. Then, make sure you clear it with them. Plus, you should also choose an executer, which is a person who will manage the process of following through on you will. Carrick reminds to revisit your will if there are major changes in your life, such as divorce, as well as when your kids have grown up and are no longer dependents.
If you die without a will, your loved ones will suffer heavily. Without a will...
- You can’t choose who your beneficiaries will be
- You can’t choose who will administer your estate
- You can’t plan your estate to minimize taxes
- You can’t choose a guardian for your children
- The courts will appoint someone to administer your estate
If you are married and have kids, but don’t have a will, sprint like Usain Bolt to get it set up. You can avoid a lot of potential problems mentioned above if you simply plan ahead. And let’s not pretend that you don’t need to plan for dying. It’s one of those universal experiences that tend to involve the majority of us.