MYDARALINK.COM - Article: Why it's important to have a will at any age

Good financial planning is all about providing for you and your family. And while nobody likes to dwell on it, that means ensuring your loved ones are taken care of after you die.

"To ensure that your assets are dispersed to your family according to your wishes, you need a will," advises Christine Van Cauwenberghe, LL.B and Director of Tax and Estate Planning, Advanced Financial Planning Support at Investors Group. "A will is a document that contains explicit instructions on how the various elements of your estate will be distributed to your beneficiaries." Dying without a will (known in legal circles as dying 'intestate') can cause considerable complications and may result in your assets being distributed against your wishes.

Without a will, provincial/state law will govern how your assets will be distributed. Rules vary from province to province and state to state, but no matter where you live, the law's interpretation of where assets should go may not match yours.

"Your lawyer should prepare your will, since it's important that it be legally sound," says Van Cauwenberghe. "But before talking to your lawyer, consult with your financial consultant about how to best structure your assets to achieve your objectives and minimize taxes." You can also explore ways of reducing probate fees, which are based on the value of your estate.

Here are some items to consider when formulating your will:

You are able to specify exact cash amounts, individual property or percentages of the value of your estate that should go to each beneficiary. Beneficiaries to consider could include your spouse, children, grandchildren and other relatives. You might also want to leave assets or money to charities, friends and associates.

Include provisions for treasured possessions such as jewelry, art, fine furniture or other collectibles that you want to leave to specific individuals.

If you plan to leave your entire estate to your spouse, include instructions for distribution of your wealth should you and your spouse die at the same time.

Specify who you want to take care of your young children. Of course, this should be thoroughly discussed with your designated guardian(s) before drawing up the will.

Appoint an executor. This is the person who will act on your behalf to settle the financial aspects of your estate. You can appoint family members, close associates or a professional executor such as a trust company or your lawyer.

If you own a business, the planning process will be more complex and will often require consultation with your accountant and other parties involved in the business. Your ability to dispose of your interest in the business might be restricted by agreements entered into with your partners or other shareholders.

Tax-wise investing should be an important part of your overall financial plan and investment program. Tara Little, Associate Consultant with Investors Group Financial Services Inc. can help you develop the right tax-reduction strategy for your personal situation. Feel free to contact Tara via email: Tara.Little@investorsgroup.com or phone at (416) 860 1668 ex 233.
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