Planning Now Means Peace of Mind Later

• Preparing a Will
• "Living Wills"
• Choosing an Executor
• Donor Cards
• Pre-arranging your Funeral
• Funeral, Burial and Gravemarking Assistance - Veterans Affairs Canada
• Funeral, Burial and Gravemarking Assistance - The Last Post Fund
• Deeds
• Organizing Important Papers
• Preparing an Obituary Notice
• Keeping Informed

Preparing a Will

Most of us put off preparing our Wills, with excuses such as: "I'm leaving everything to my spouse anyway" or "I can't afford the lawyer's fee right now." In fact, lawyers charge less for preparing a Will than they do for settling the estate of someone who dies without a Will. The lawyer's fee is a small cost to insure that your estate is dealt with in the way you intended.

Both you and your spouse should have up-to-date Wills. Before contacting a lawyer, notary public or trust company officer, you and your spouse should make a list of all your possessions. The list should include personal items such as jewellery as well as more obvious assets such as savings certificates and vehicles. Another list should be made of all items that you wish to go to specific people. This list should be attached to and mentioned in the Will. This simple method will save time and ensure your possessions go to those people you wish to have them.

Some trust companies offer Will planning as a free service and will check your completed Will to ensure that it is legally and administratively correct. They can also assist in the areas of estate planning from a tax point of view preparing a "letter of direction" to a lawyer and advising on conversion of assets to joint ownership. Some trust companies will hold a copy of your Will and arrange a regular follow-up program to update the contents.

When signing your Will, two competent adults of legal age must witness your signature. They must know they are signing a Will and they must see you and each other signing it. You and the two witnesses must initial those pages that are not formally signed, and also initiate any changes made - all in your presence and theat of each other.

Once prepared, one copy of the Will should be kept at home so it can be reviewed from time to time and a second copy should be left at your lawyer's office.

The main purpose of a Will is to ensure that your instructions are followed with regard to disposing of your liquid assets, ie., personal property, cash, stocks, bonds, term deposits, RSPs, etc. and your fixed assets, ie. real property, buildings, cars, furniture, jewellery, tools, equipment etc.

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"Living Wills"

"Living Wills" are documents that state your wishes in case either you, your spouse or both of you, become unable, for whatever reason, to make your own decisions. For example, if you couldn't manage on your own, you would want your house sold? Would you want to live with a particular son or daughter? Would you prefer that all efforts be made to prolong your life in case of accident or illness? Ask a family member or your lawyer for help with wording if necessary.

Give copies of your "living will" to your lawyer, and your closest relatives and friends. This may not be legally binding, but it is a way of letting your wishes be known.

Choosing an Executor

An executor ensures that the instructions in your Will are followed. Trust companies offer executor services. If your affairs are complicated, a trust company can provide the expertise and experience to properly look after tax and administrative details, from completing life insurance claims to setting up and administering trusts as directed in the Will.

For smaller estates of less than $50,000 your lawyer, a trusted friend, or a relative could be your executor. The ideal executor is a younger, well-educated family member who lives in your geographic area. Your executor should be willing to serve in this role before he/she is named in your Will.

If an executor is not named in a Will, the Probate Court may request the first available or suitable individual from a list of family members to act as executor. The court may also appoint an outside party as executor or administrator of the estate.

Executors are normally entitled to a commission. In Nova Scotia, for example, executors may be entitled up to five per cent of the full value of assets including the income from the estate for the first year. An executor may also be a beneficiary in a Will.

You should also identify an alternate executor in case your first choice is unable to act or dies before you do. Your primary and alternate executors should be specified in the Will and should also have a copy of your Will.

If an executor is inexperience, you may authorize him/her to appoint a trust company to perform more difficult duties such as arranging trust funds. Another alternative is to have a trust company as a corporate executor, but name a willing family member or friend as a co-executor, to give a more personal touch to administering the estate.

It is important to choose you executor(s) now so you can make these decisions together.

Donor Cards

Do you wish to donate you body or part of your body for transplant or other uses after death? If so, you will need to sign the necessary donor cards. In most provinces, donor cards are available from drivers licensing offices and universities with medical schools. Inform your physician and family members of your wishes.

Pre-arranging your Funeral

This is just as sensible as having your Will prepared. Advance planning can spare much future anxiety, expense and inconvenience.

Make an appointment for yourself and a family member, friend or your executor at the funeral home or memorial society of your choice. Most funeral homes and memorial societies offer informative booklets and encourage preplanning of funerals to avoid the need for survivors to make decisions while under emotional stress. Such a meeting may help you decide on a burial or cremation, type of service preferred, and your personal wishes on many other aspects of the arrangements. For example, Royal Canadian Legion members may want the Legion to be involved in the ceremony.

It is important to select a funeral plan that you and your family can afford. Try to cut costs by eliminating the items you feel are least important. Obtain detailed written estimates and consult with your clergyman and family members before making a final decision. If you do not pre-arrange your funeral, you should at least write down any specific arrangements you want to attach to a copy of your Will, there it will serve as a guide for your family and executor(s).

Prepaying funeral and burial services is not always advisable even though prepayment guarantees the price against future increases. There are risks such as the company going bankrupt or changing hands and the new owners not honouring the previous owner's commitments. Furthermore, it may be more economical to put the money for funeral/burial expenses in an account that earns interest. You may want to consult your lawyer before deciding.

Deeds

Deeds to common property, such as a home or summer cottage, should be registered jointly in both your name and your spouse's name. Full names should always be used, i.e., John and Joan Smith, rather than Mr. and Mrs. Smith. This will simplify estate proceedings and may save probate costs. (Probate refers to the process of legally verifying the Will).

If not done already, Veterans Land Administration clients should contact the nearest VLA office and have their spouse made a joint purchaser on the agreement of sale.

Organizing Important Papers

Important Papers should be kept in one place. These include Wills of veteran and spouse, birth and marriage certificates, military service documents, deeds to property, bonds, and stock certificates.

If a safety deposit box is used, it should be set up like a joint account so that it is accessible by either spouse. Life insurance policies, however, should be kept at home. If you have a named beneficiary, these funds do not pass through the estate, but go directly to the beneficiary. If they are in a safety deposit box, there could be a delay in getting the money.

Current income tax information and copies of prior year returns, insurance policies, copies of Wills, lists of assets, investments and bank accounts, lists of credit card numbers, lease agreements, memberships and subscriptions should be filed at home.

Your executors and closest friends and relatives should know where you keep important papers.

Preparing an Obituary Notice

It is advisable to write your obituary notice beforehand as it relieves the family of this responsibility and ensures that nobody should be mentioned in the obituary is overlooked. The notice should be written with great care because of its importance to the family.

Keeping Informed

Read up on subjects such as hospice care, alternative housing, and estate planning. Your local library will have books on these topics and also on bereavement and dealing with grief. Other sources of information are trust companies, funeral co-ops, and law societies.