Do you have a will? If you answered 鈥淣o,鈥� you鈥檙e not alone.
In fact, nearly 60 per cent of Canadians do not have a will in place, a percentage that鈥檚 even higher among younger Canadians aged 25 to 35, says Luke Berard, CFP, an Investment Advisor and Financial Planner with RBC Wealth Management, and a member of 91原创 Memorial Hospital Foundation鈥檚 Legacy Giving Committee.
鈥淭hat鈥檚 a staggering number considering your will is the most important document you鈥檒l have prepared, one that will look after your loved ones after you鈥檙e gone,鈥� Berard says.
As a legal document, a will details how you want your property distributed and who will care for any minor children, ensuring your wishes are respected if the unexpected happens. Including a gift to one or more charities in your will can also reduce taxes owing upon your death, and celebrates your legacy of making a difference in the community.
So while a will and estate plan isn鈥檛 top of mind for many of us, here鈥檚 why it should be, regardless of age or degree of wealth:
1. You determine who will be in charge of your estate after you鈥檙e gone 鈥� you choose your Executor, who will administer your estate.
2. You ensure your family and loved ones are looked after 鈥� A will outlines who your beneficiaries will be, including both loved ones and charitable bequests, and lets you choose a suitable guardian for your minor children. Without a will, you cannot set up a trust for a disabled or minor child.
3. Save your estate time and money 鈥� If you die without a will 鈥� called 鈥渋ntestate鈥� 鈥� the Province has its own laws as to where your assets will go and who will be in control. In this case, the cost of a Court Application after death is far greater, which may cause problems, delays, frustrations and add unnecessary costs for your loved ones.
Because a will can outline as many beneficiaries as you wish, it also lets you leave a legacy to both your loved ones and to charities whose work you support.
鈥淵our legacy giving can have a real and lasting impact on your community and beyond,鈥� Berard reflects. 鈥淎nd in addition to continuing to support a cause that鈥檚 important to you, it may also provide substantial tax and estate planning benefits.鈥�
It鈥檚 important to know that you can change or revoke a bequest simply by changing your will, assuming you have the capacity to do so. You can also choose to bequeath a percentage of your estate instead of an absolute dollar amount so the amount of your gift is automatically kept in line with the amount of your wealth.
To ensure your own circumstances have been properly considered, it鈥檚 always best to speak with a qualified legal advisor, and ideally your financial advisor and tax accountant, to come up with the best plan based on the latest information, Berard notes.
Make-a-Will Week in B.C., Oct. 2 to 8, is an ideal time to learn more about making your will or leaving a legacy gift. Speak to your financial advisor today, or contact 91原创 Memorial Hospital Foundation at