Is it time to review your will? 10 questions to start with

12 Sep Is it time to review your will? 10 questions to start with

For most people, creating a will is nothing more than a task on a to-do list. You want to finish it up, check it off your list and forget about it.

The problem is, circumstances change. You may have gotten married, been divorced, had children, started a business, bought a house or even invested in the stock market. If your will doesn’t reflect all the things you own and all the people who rely on you, it’s probably time to review and update your will.

When considering what needs to be changed or updated, begin by answering these questions:

1. Was the will reviewed or prepared by a lawyer or notary? A will that was prepared by a professional – in the proper executed format – and is properly witnessed can be executed. It’s worthwhile spending a little more money to set up your will properly in order to avoid problems later on.
2. Are there any challenges to the will’s validity? A spouse has rights. If you’ve been divorced and remarried since you last updated your will, that older will is now null and void. There may be other challenges with your will’s validity as well, depending on other changes in your life.
3. How old is the will? The law is constantly changing and evolving. So even if nothing major has changed in your life, if your will is more than five years old, it may need significant updates to reflect the new laws.
4. What has changed for you financially, both in your personal life and in business? There is usually more to this than larger numbers, although that is a great starting point. Don’t forget to consider RRSPs, RESPs, insurance policies and investments.
5. Does the will fulfill your family obligations? Consider who relies on you for financial – and other – support. Take care to consider all your children, including stepchildren or even nieces and nephews. Think about whether anyone else should receive something.
6. Is the will fair? Consider after-tax terms when it comes to beneficiary designations and joint ownership. When the estate pays the tax on your RRSP funds, it’s possible that one of your beneficiaries will get a lesser inheritance. Make sure you aren’t favoring one beneficiary over another.
7. Should you have a corporate trustee? When considering your beneficiaries, it’s important to understand whether they can manage the money you leave them. Are your beneficiaries minors, or do they have special needs? If so, you may need a corporate trustee to manage the funds.
8. Who is the executor? Over time, relationships change. It’s possible that your executor has moved, or he may have other obligations that make it impossible to take on the role now. It’s worth considering if there is someone who is better suited to serve as your executor.
9. Have you asked all executors, guardians or trustees if they are willing and able to take on the role? Similarly, it’s important to consider these individuals and their circumstances. Are they still the people that are most suitable and most trusted? Is there someone else who might serve better?
10. Can you outline what your will specifies in your own words? It’s important that you know and understand how your will allocates your estate and protects your assets. If it’s been too long and you can’t even identify what you wanted, it’s certainly time to review your will.

To learn more about preparing your estate, contact us.

Joel Rose

With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.