It’s a new year, and for many, with that comes new resolutions! My fellow blogger, Elaine Blades, recently encouraged those readers who are among the 50% of Canadians without a Will to add “making a Will” to their goals for 2016. If you have a Will, you may also wish to consider adding “reviewing your Will” to your resolution list if:

• You or your intended beneficiaries have experienced significant family changes (e.g. separation/divorce, new marriages or common law partnerships, births or adoptions);
• The health of any of the individuals named as an executor or trustee (or an alternate) has declined, the person has passed away or the person has moved abroad;
• Your Will includes testamentary trusts, significant charitable gifts or your estate planning involves alter ego, joint partner or spousal trusts (as a result of new tax rules, it is prudent to speak to a lawyer to ensure that your estate plan still works as intended);
• You have acquired new property that may require special treatment in a Will (e.g. property abroad, RESPs, RRSPs, TFSAs, life insurance, shares of a private company, interests in a trust, jointly-owned property); or
• It has been five years or more since you last reviewed your Will.

In addition to providing the satisfaction of moving an important task from one’s mental “to do” list, there are practical reasons to prioritize making a Will, should you not yet have one. Without a Will, one:

• Has no control over what assets each beneficiary gets – Ontario’s intestacy scheme distributes inheritance to the spouse or “next of kin”, with spouses and children, should they both exist, sharing in the estate. Many people do not realize that “spouse” in this context includes only married spouses – common law spouses will not inherit;
• Cannot control when children or grandchildren get assets – Assets will be automatically paid to children/grandchildren upon attaining age 18, an age which many feel is too young to handle a large inheritance. Our laws also restrict payments to the parent of a minor of more than $10,000. Inheritance exceeding this amount will be paid into court and held for the minor. Parents will need to apply to access funds. The inheritance will be conservatively invested, potentially experiencing less growth than if invested privately;
• Cannot minimize income taxes or probate fees;
• Cannot choose the executor(s);
• Cannot appoint guardian(s) of minor children;
• Is likely to incur greater administration costs – The process for appointing the administrator is potentially longer and more complex and, once appointed, the administrator will often be required to post a bond.