Advanced Directives & Wills

Advanced Directives & Wills

Wills, last testaments and advanced directives are legal documents that outline how your assets will be distributed in the event of your death. This can be done at varying times and for every Canadian family the process is unique. Because no two families are alike, it is not practical to suggest one "right" way to go about creating this document. That being said, as a legal document there are certain things that a Will must include in order to be an official part of fulfilling someone's final wishes. There are a couple of universal rules in this country - Wills can not erase the beneficiary of a life insurance policy, which has to be legally honoured regardless of what the Will says. 

Understand the Components of a Will

Lot's of people openly discuss Wills. The legal document has become somewhat of a common discussion point that people use to reference what will happen after they die, where their "stuff" will go and their health care wishes should they not be able to make decisions themselves. 

A Will and advanced directives (also known as a living Will) are serious legal documents worthy of careful consideration, the advice of a lawyer and an understanding of your own financial picture. When doing this, it will be important to have a clear picture of your assets and liabilities. 

You'll also need to make decisions like:
  • What will your Healthcare directive be?
  • Who will be your power of attorney? 
  • Who will be your beneficiary?
You can start putting this together as early as 18 and must understand that Wills often change due to others passing away or different economic conditions. In this sense, the components of a Will are constantly in flux and the best thing to do is constantly know where you stand. 

Know the Common Assets found in a Will

Wills are meant to divide all of the assets someone has to the friends, family and organizations that are near to their heart. Some people have left Wills with their entire life savings being donated to science, while others have supported the educational institution from which they graduated. There is no correct formula or guide to which assets need to be included in a Will. Although, there are some generally common things that you will find on the typical Will. These include: 
  • Property like homes, land, timeshares, farms or commercial buildings
  • Financial assets like bonds, mutual funds, stocks, shares and businesses
  • Family heirlooms like art, jewellery and other valuables
  • Keepsakes like notes, books, photo albums 
  • Funeral wishes  

Decide Who Is Responsible for the Will

A Will or living Will is slightly more complicated that identifying who is supposed to get all of your "stuff" after you die. There are several people who need to be involved. For example:

The Testator: this is the person who creates and executes the Will. 

The Beneficiary: this is a person receiving a gift from the testator, and can be an organization (like a charity), an individual person or a group of people. 

The Executor: In many respects the executor has the most important role in a Will. They are responsible for representing the deceased in the administration of their Will. In addition to dividing up assets, this individual is also in charge of finalizing the finances of the deceased's estate, like paying taxes and settling debts. 

These are just the most important roles involved with a Will, but there is also bankers, lawyers and doctors who can be involved. 

Make The Will Official

In order to execute your Will and make it official, you will need to be present at the signing along with a witness of your choosing. Each page is generally initialed with the signature page requiring your full legal signature. Generally, Wills or advanced directives are notarized and filed to make them official after signing. 

Once your Will is signed and filed, it does not mean it is finalized. Often, there are changes that need to be made a result of financial changes, marriage or divorce, birth of children, and the death of someone who may be named in the Will. It is best to see a Will as a living, breathing thing that constantly changes and develops over time. In this sense it is never too early or late to get yours started. 
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