SEE WAREHOUSE OFFERS >
Scrolled to top
Costco Connection  |  July  |  Up Front  |  Financial Connection
FINANCIAL CONNECTION
people sitting at a table
© KAWEE / STOCK.ADOBE.COM

Future proofing

Keeping your will up to date benefits you and your family members

by LANA SANICHAR

June is when my husband and I like to sit down to take a midyear deep dive into our personal finances to make sure everything is on track. In doing so, we realized that our wills were 10 years out of date and it was time to update them.

I decided to reach out to Colin Ritchie, lawyer, financial planner and contributing author to Canadian MoneySaver magazine, for his tips on items to consider including when writing your will. He suggests:

Executor pay. Rather than letting the court decide the appropriate fee (usually 1% to 5% of your estate), consider stating the appropriate percentage, a flat fee indexed to inflation or even no fee. By putting this down in writing, you’re answering in advance the question as to what you think is fair.

Personal effects. This is the place to specify how your belongings will be divided. I love specifying who is responsible for shipping costs, and also requiring compensation payments if one of the kids wants your Tesla and the other just gets your toaster.

Gifting to youngsters. By staggering out when a young person receives an inheritance, they will have the opportunity to learn about managing smaller amounts of money before getting the big bucks later.

Funeral wishes. The more guidance you can provide, the less money will be spent on things you don’t want. There will also be less stress for the people making these decisions and fewer complaints from the rest of the family.

Resolving deadlocks. If multiple people are your executors and can’t agree, do you want to pick someone else to break ties? Better yet, if the kids don’t see eye to eye, consider picking a non-family member or even a trust company.

Family loans. If loans to family are to be forgiven, say so. If not, consider whether any interest should be added to the balance of long-standing loans in order to equalize things with the other heirs.

You will likely have to update your will a few times in the future if you want to ensure that your wishes are carried out and that your heirs’ experiences result in a minimal amount of stress.

Time to change
According to the website Steps to Justice (stepstojustice.ca), it’s a good idea to review your will every few years to see if it needs to be updated because of changes to your situation or wishes.

For example, it’s very important to review your will if:
  • You get married, separated, divorced or start a common-law relationship.
  • You become a parent.
  • There are big changes in your financial situation.
  • Your estate trustee’s situation has changed.
  • You want to add or remove beneficiaries.—LS
    • head of a woman
    COURTESY OF LANA SANICHAR
    Lana Sanichar is president and editor-in-chief of Canadian Money Saver magazine.

    Through an exclusive arrangement, Canadian Money Saver’s experts partner with the Costco Connection to share advice about relevant financial topics.

    Email topic suggestions to moneyinfo@canadianmoney saver.ca.

    Costco members are offered a one-year special introductory price with on line subscription. Go to canadianmoneysaver.ca and click on “Subscribe,” or call 519-772-7632. Online, use “Costco” for the discount code at the bottom of the page.