7 Key issues in making your Will
A Will is a highly flexible document. It can contain a wide
variety of clauses and cover many issues. These are just a
few.
Asset distribution –
This is the main reason for having a Will – to spell
out how you want your property to be distributed after your
death.
Your Executor – Your
Will should specify an executor. Choosing an executor* is
one of your most important decisions because they will take
over control of your assets when you die. (More on executor
in the section, Your
executor - Key to estate settlement)
*In the province of Quebec, an ‘executor’
is called a ‘liquidator’, and in the province
of Ontario, an ‘estate trustee’.
Guardian – If you have
minor children, your Will can name the person you want to
be the guardian should something happen to you and your spouse.
Although this clause is not legally binding, the courts generally
carry out the request.
Legacies – If you would
like to leave something to certain people or organizations,
the legal term for your gift is a legacy. It’s possible
that a legacy to a charity could result in a tax benefit for
your estate. And if you’d like to give to more than
one, your Will can have as many legacies as you like.
Trusts – A trust lets
you transfer ownership of assets but still retain control
of how the assets are distributed. For example, if you have
an heir who spends money carelessly, you could create a trust
that gives them their inheritance over time rather than in
one lump sum.
Power Clause – Many actions
of the executor and trustee require court approval. A power
clause gives them the authority to do certain things in managing
the estate without court approval, for example, to make investments
on behalf of the estate.
Life Interest – Use this
clause when you want to give someone the income or enjoyment
of an asset without giving the asset itself. For example,
a cottage or piece of art that’s been in the family
for years. Or a trust fund that generates income. A life interest
clause protects the asset to ensure it will be there for future
generations.
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