A will is probably the most important document people will ever write.
Some people try to save money by drafting a will on their own but doing so may end up costing more money for the people who are supposed to benefit from the estate. Wills are governed by provincial legislation, which can change, and tax issues can be confusing.
The cost of having a professionally-drafted will is far less than most people realize. People can also save money by making sure they are organized and ready before seeing the lawyer by creating a record of important documents and the names of immediate family, executor and beneficiaries.
If someone dies without a will, the court appoints an administrator to manage the estate and provincial legislation will determine the beneficiaries – possibly including some people the deceased never had any intention of remembering.
The process is generally costlier in terms of both administrative expenses and lost tax advantages, leaving much less than intended for chosen beneficiaries. Some of the bequests the person had always wanted to make, such as to favourite charities, could be ignored.
An executor is the person chosen to be responsible for using the deceased assets as needed to pay any outstanding debts and to file a final income tax return. The executor is also responsible for preserving assets until they can be sold or transferred to the beneficiaries of the estate.
Once all the financial obligations have been met, and clearance from the Canada Revenue Agency obtained, the executor can distribute the remaining assets according to the deceased’s wishes.
Any adult can be an executor. Choose someone both capable and willing to take on the responsibility.
