By Graeme Kluge
Do you have an up-to-date last will and testament? If the answer is “no,” you are not alone. According to a 2023 Angus Reid Institute survey, half of the people in this country say they do not have a will. Of those who do, 13 per cent report that their will is out of date. In fact, only two in five Canadians surveyed, or 37 per cent, say they have an up-to-date last will and testament.
When is the best time to think about estate planning? The short answer is now. Life is constant change. No one can predict with any great degree of accuracy what the future holds, so it is prudent to have a plan in place that dictates how your estate is shared.
Having a last will and testament is especially important in Alberta. If anyone over the age of 18 dies without a will in this province, Part 3 of the Wills and Succession Act comes into force, dictating how your estate will be handled. That may not be what you wanted or intended, and could lead to loved ones litigating over your property and investments, resulting in stressful and unpleasant court battles. Having a will also ensures your final wishes are carried out in terms of the guardianship of any children.
The team at Demas Schaefer Family Lawyers is experienced in family law, and we provide our clients with the answers they require to reach their goals. We can guide you through the process of drafting a last will and testament that meets your needs.
Mixed attitudes when it comes to wills
The reasons to have a last will and testament outnumber the reasons to put off. Yet many people still haven’t taken the time to put their last wishes in writing. According to the Angus Reid poll, a “significant number” (25 per cent) say the reason they don’t have a will is that they are too young to worry about it. Twenty-three per cent said they don’t have enough assets to make drafting one worthwhile. Other reasons given include: it is too expensive (18 per cent); people don’t want to think about dying (eight per cent); and the process is too time-consuming (five per cent).
Canadians 55 and older are nearly four times as likely as the youngest cohort (18-34) and twice as likely as those 35 to 54 to say they have a will that is up-to-date.
Reviewing a will goes hand-in-hand with drafting one. It ensures your final wishes are accurately reflected and your assets are distributed as you intended. This can be especially important after significant life changes. Sadly, Angus Reid found that only 35 per cent reported they have a current will.
The poll also found that wealthier Canadians tend to have a will to avoid dying intestate and having the government distribute their estate. Meanwhile, “those who have not accumulated significant assets appear less worried” about drafting a will.
“Indeed, a majority of high-income earners – households making more than $100,000 – indicate they have a will, while just over two-in-five of those making less than $50,0000 say the same thing,” according to Angus Reid.
Not just about assets
When people think of wills, they are typically associated with terms such as “assets” and “property.” But a last will and testament can have a more important function – caring for the welfare of your children.
Even if you are healthy and in the prime of life, a will makes sense for the peace of mind it can provide in the unlikely event of an illness or accident that leaves your children parentless. If parents die intestate, they will not have a say in who raises their offspring. Instead, it will be left to the court to choose a guardian. Appointing a guardian in your will avoids unnecessary infighting and ensures your children are raised by the people you want.
It should also be noted that without a will spelling out your wishes, the Public Trustee will assume control of a minor child’s share of your estate until they reach the age of 18. Consider also that when your children do reach that age, they will assume control of your estate regardless of whether they are mature enough to handle that responsibility.
A last will and testament allows you to lay out exactly how the proceeds of your estate are invested, who invests those proceeds, when your children can take control of the funds, and whether they can access their inheritance before they come of age for emergencies or other necessities such as school tuition.
Do I need a lawyer to draft a will?
Will kits are easy to find on the internet, but it is important to remember that you get what you pay for. Online wills offer convenience and low cost. However, there are drawbacks that must be considered.
A will kit may be simple to complete, but people typically have personal and financial lives that are more complex than they tend to realize. You may have an estate that includes investments, property, and securities. You may also have multiple beneficiaries with specific wishes for each.
While an online will may allow you to address all these issues, there is the chance you may make a mistake or an omission that runs counter to what you really want to do.
The Government of Alberta recommends consulting a lawyer to “ensure your wishes are represented accurately.” An attorney versed in estate law can also help you avoid vague wording and conflicting or ambiguous provisions that could lead to a court challenge after you are gone.
Reviews are essential
Once you have an estate plan, it is also wise to re-evaluate those plans to address any changes in your wishes. Life insurance policies, TFSAs and RRSPs have designated beneficiaries, some of which you may have selected years ago. Do you still want the same people to be your beneficiaries?
Life changes, and so should your will. Reviews should take into account marriage, separation or divorce, the purchase or sale of a home or other significant assets, a new business ownership, birth or adoption of a child or grandchild, the death of a family member or key events.
An out-of-date will could create problems that you didn’t anticipate.
“Laws change, personal and financial circumstances change, and new financial and estate planning resources may become available,” the Government of Alberta states. “For instance, the wishes written down by a single person could change if they marry and have children. Acquiring or selling property could also change what you want to happen after your death. Review your will on a regular basis and after major life events, such as marriage, divorce, children, etc., to make sure it still reflects your wishes.”
Don’t put off making a will
A last will and testament is something everyone should have but few people like to think about. However, planning your estate is a responsibility that shouldn’t be ignored. Let us help you ensure your last wishes are respected.
Demas Schaefer Family Lawyers serve all of Northern Alberta, with clients in Edmonton, Leduc, Wetaskiwin, Sherwood Park, Spruce Grove, St. Albert, Red Deer, Provost, Grande Prairie, Peace River, Edson, Hinton, and Cold Lake. We are able to appear both in person and remotely to accommodate all of your needs. Contact us today.