The assets you build over a lifetime should pass to the people and institutions you choose, in the way that benefits them most. The surest way to achieve that is a valid, properly drafted Will, prepared with sound legal advice.
If you die without a Will, your estate is distributed among your next of kin according to a formula set out in provincial legislation - regardless of whether that result is in their best interests or reflects what you would have wanted. If you die with no living relatives, your estate ultimately passes to the Crown.
A number of matters deserve careful thought when making a Will:
1) Who should be your Executor?
Should you appoint a family member, a friend, a professional advisor, or a trust company? The right choice depends on the nature of the gifts you intend to make and the circumstances of your beneficiaries. It is also worth considering how the Executor will be compensated, particularly where that person is not also a beneficiary.
2) How do you best provide for your family?
This depends on your family and financial circumstances. The needs of a spouse or common-law partner have to be weighed against a wish to benefit children or later generations. It cannot be assumed that a surviving spouse will not remarry, and a remarriage can significantly affect a child's eventual share of an estate.
3) What if a beneficiary cannot manage money or is otherwise vulnerable?
Where a beneficiary has difficulty managing money, faces financial trouble, lives with a disability, or is in an unstable relationship, the goal is to balance providing for them against the risk that an outright gift will be lost or wasted. A trust created within your Will can be an effective tool for this, allowing funds to be managed and released in a controlled way.
4) Why consider a trust within your Will?
A trust established under a Will can offer meaningful protection - giving you control over how and when a beneficiary receives their inheritance, shielding assets from being dissipated, and providing for beneficiaries who cannot manage funds themselves. Depending on the circumstances, there may also be tax-planning considerations. These are matters to work through with proper advice, as the right structure depends entirely on your situation.
To discuss your Will and estate planning, reach out through our contact page or visit our Twillingate or Gander office.
It is our job to help you find the ideal solutions to these important questions. We invite you to schedule a consultation with us via the contact page.