THE IMPORTANCE OF AN UP-TO-DATE WILL
WHY A WILL?

WILL PLANNING -THE PROCESS

FINANCIAL CONSIDERATIONS
The first step in developing an effective Will plan is to determine where you stand today. You begin by completing a confidential Record of Personal Financial Affairs with one of our Account Managers. This will be reviewed by one of our Estate Planners prior to setting the objectives for your Will.

PERSONAL CONSIDERATIONS

• Establishing trusts for spouses, children, grandchildren or others
Choosing a guardian or tutor for children
• Making provisions for special needs, (such as educational expenses, or medical and maintenance expenses for the elderly, or disabled), and
• Establishing trusts for the education of your children and grandchildren.

Other options to protect your estate could include:
• Determining how much authority your Executor and trustee should be given to deal with special interests, such as partnerships or private companies;
• Special bequests leaving sentimental items to specific individuals or institutions.

THE NEED FOR SOUND TAX ADVICE TODAY

From a tax point of view, your estate planning objectives can be summarized as follows:
• Minimize and defer taxes on your estate;
• Shift any potential tax burden to your heirs to be paid only upon the future sale of the assets;
• Minimize taxes at death to preserve most of your estate for your heirs.
Some of the techniques that can be considered to achieve this are:
• Trusts for children to ensure tax savings in the future;
• Transferring assets to family members in a lower tax bracket;
• Organizing your current assets to take advantage of special income tax options and minimize payments;
• Making the best use of dividend tax credits, tax shelters, holding companies, and charitable donations; or
• Estate freezes to organize your affairs so that future appreciation in the value of specific assets occurs in the hands of others, usually your children, to reduce tax.

REVIEWS AND UPDATES

A Will is a living document. It should change as you change. Your Will may need updating when:
• Your family circumstances change;
• Your financial assets change;
• New legislation impacts your current plan; or
• The economic climate changes,

Regular reviews are important. They enable you to anticipate the changing needs of your dependants and beneficiaries in a constantly changing world.

WHAT’S IN A WILL?

A Will requires careful planning to ensure all aspects are covered. The chart below outlining the contents of a basic Will clearly demonstrates this point.

CONTENTS OF WILL

• Revocation of previous wills
• Executors & Trustees (primary & alternate)
• Funeral arrangements
• Payment of debts and funeral expenses
• Specific bequests (charitable donations, forgiveness of family loans,   family home, RRSP)
• Distribution of personal effects
• Residue (primary and alternate beneficiaries)
• Income splitting trusts for spouse, children, grandchildren
• Investment and other powers (use capital gains exemption)
• Income from inheritance to be excluded property for family law legislation (Ontario)
• Appointing guardians

CHOOSING THE RIGHT EXECUTOR A MOST IMPORTANT DECISION

DUTIES OF AN EXECUTOR

All estates must have either an Executor or administrator. An Executor is named in your Will. An administrator is appointed by the court in the absence of a Will. Simply stated, your Executor acts as your ‘personal representative’, resolving all financial aspects of your estate. The Executor assembles and protects assets, forecasts cash needs, handles all tax requirements, distributes the estate and can act as a trustee for the ongoing management of your assets.

To demonstrate the magnitude of an Executor’s duties, here is a partial list of the activities involved:

Would you knowingly accept the responsibility for the following duties as an Executor?

CHOOSING AN EXECUTOR

There are two kinds of Executors. A professional Executor such as a trust company, lawyer or accountant. Or, a family member or friend acquainted with the more personal details of your life.

It may seem that naming a family friend or relative as your Executor is like bestowing an honour on them. In reality, it is a heavy imposition. They will be required to devote substantial time and personal effort to the task. If they are actively employed, very old or perhaps ill, they may not be able to cope.

Regardless of how skillfully your Will is prepared, the settlement of even a straightforward estate requires a broad range of knowledge. Experience in valuing assets, probating a Will, insurance, real estate, investments and tax are needed in varying degrees.

Imagine how very difficult it could be for a family member or friend to act as your Executor in this emotional time. Especially when very sensitive decisions have to be made, such as discretionary maintenance, education or other payments for your family members.

Often, an Executor may have to remain involved as a trustee managing the family affairs for several years. It is especially in these cases that the expertise, objectivity and continuity of the corporate Executor become most beneficial.

In general, since few of us have a friend or relative with the time and experience needed, it is usually best to appoint a trust company as Executor or Co-Executor of your Will.

WHAT IS A CO-EXECUTOR?

In a Co-Executorship, a Trust Company would share the Executor role with one of a number of parties, usually including your spouse, children, close friends or business associates, appointed by you to carry out the provisions of your Will. They add experience and expertise to balance the demanding responsibilities of Executorship.