Estate Planning – Your Will

Estate Planning – Your Will (October 10, 2012)

Taking a few minutes to prepare or update your will not only makes a difficult time easier but may even save you some money. Wills do not have to be complicated. This email describes the key items

The EXECUTOR is responsible for administrating your estate and ensuring that your wishes are implemented. The executor can hire a lawyer or accountant to help them with any legal or tax issues. In most cases the executor is the spouse or an adult child.

The BENEFICIARIES are the individuals that will share in the assets of your estate. If a beneficiary will receive more than $250,000, consider asking your lawyer to designate a trust as the beneficiary instead of the beneficiary directly. Trusts are separate taxpayers and therefore any income earned by the trust may be taxed at a lower tax rate.

If you own a private company worth more than $200,000, consider preparing a second will for your private company. This will avoid probate fees of 1.5%

The beneficiary designation on life insurance policies and RRSP/ RRIFs will normally be your spouse or your estate (these amounts are not governed by your will unless the estate is the beneficiary).

Resources:
Estate Planning
Probate Fees