The need for a will should not be overlooked even in so-called "simple" cases where a testator has very little to deal with upon their death (no property or vehicles, little savings and no investments).
This person might view the idea of making a will as an unnecessary bother or pointless because the person has "nothing" anyway. For those that have no interest in making a will, here is an excellent reason to do so: Since everyone - no matter how much or how little they have - must file a tax return annually, there is a need for someone to do this final tax return after a person dies.
If for this basic purpose alone, a will ensures the person - called the "executrix" or "executor" in the will - that we wish to handle our affairs has the ability to carry out this task.
In addition to "winding up" a person's finances, the executor usually handles other duties that might include the following:
. Make funeral arrangements;
. Locate and secure estate assets (maintain car insurance or a mortgage);
. Advertise in a local newspaper for creditors;
. Sell assets that need to be sold or transfer items to an heir;
. Locate family members that might be entitled to share in the estate;
. File all necessary income tax returns and obtain an income tax clearance from the federal tax department, confirming that all income tax has been paid;
. Pay the estate's debts, income taxes, legal and accounting expenses; and
. Pay beneficiaries and report to relatives the estate distribution.
Considering the above list, even a "small" estate needs attention and a will provides much-needed instructions to carry out the above tasks.
Given that estates range in complexity and value, a will helps to secure what happens with wealth accumulated during a person's life.
After consulting with a lawyer and perhaps an accountant, a will provides assurance to carry out the plan to maximize the value of the estate by reducing taxes and other expenses. A will helps to eliminate uncertainties with estate distribution because it instructs and permits the executor to carry out that plan.
The next great reason to write a will arises when we think of those we love. We rarely want to put our minds to what happens when we die, but dying without a will can leave the people in our lives with stress and expense added to their grief.
While a will does little to relieve grief, it helps to prevent - or at least reduce - conflict in cases where family members disagree as to who should carry out tasks like those listed above and the more contentious aspect: who gets what? The will gives these directions regardless of the extent or complexity of the estate.
Last and perhaps most important, having a will prevents the need for a court application to seek appointment of an administrator, which is far more costly than preparing a will. By preparing a will, we ensure those significant others in our lives are not left with the burden of spending their own time, effort and money on a court application to administer an estate.
With a will, the executor can proceed in an atmosphere of reduced conflict and confidence to distribute the estate as the person that earned it wanted.
Greta Airhart is a barrister and solicitor with Severide Law in Ladner.
