At what age should you make a will? Know when to start estate planning.

When should you start estate planning?

Having a legal will is often seen as being a function of age, but this really couldn’t be much further from the truth: In reality, no age is too young to have a legal will, but there are certain life events/conditions that prompt the need to create or update your legal will:

If you possess significant assets, such as a home.

Having significant assets is a strong indication that you need a will. If you’re like most Canadians, your largest asset is housing. If you are already a home owner or hold a mortgage (see Edmonton real estate lawyers) you should definitely consider updating or creating a legal will.

If you have recently moved moved.

If you already have a will but have moved between provinces or out of country, you will need to update it as different provinces and countries have their own unique set of laws regarding estate law.

If you own shares in a business.

If you own shares in a private business, you can avoid estate administration taxes (known as probate) in many provinces by making a secondary or cooperate will. While the amount for probate in Alberta is capped at a maximum of $525, in other provinces, such as British Columbia, probate fees have no upper limit and are charged as a percent value of the estate (in British Columbia, this often works out to be ~1.4%).

Depending on the size of your estate, this can represent a sizeable portion of your assets not going to your beneficiaries. Furthermore, probate fees can also be avoided by placing assets in legal trusts, as directed by your will, which are not subject to probate fees. It’s also important to note that, while you may live in one jurisdiction, your assets (such as the location or setup of a private company) may be subject to the laws of a different jurisdiction. If this is the case, it is vital to have a lawyer properly format your will to comply with the legal requirements of both jurisdictions.

If you are getting married, divorced, or remarried.

Changes in your matrimonial status often mean significant changes in personal relationships, and thus, your choice of likely beneficiaries in your will. Furthermore, it’s important to know that wills created before a change in matrimonial status are rendered null and void unless otherwise specified in the will. For legal advice see our Edmonton divorce lawyers page.

If you have children.

Having an updated will ensures that you can properly provide for your children in the event of your death. This is especially true for children under the age of majority, as your will specifies their legal guardians in the event of the death of both parents. Once your children reach the age of majority, you may wish to update your will to include their spouse(s) and/or children. Furthermore, as you and your children age, you may want to grant them more responsibility regarding your estate and name them as executors.

If you anticipate changes in your health.

Legal wills allow you to assign power of attorney in the case you become incapacitated or otherwise incapable of managing your own affairs. This is a decision that should not be taken lightly as your appointee will make decisions regarding not only your property but also your personal care on your behalf.

If it’s been more than 5 years since you last updated your will.

It’s recommended that you update your will every 5 years to reflect the changes the events above describe, though other events such as the death of beneficiaries, changes in law, or changes in marital status within your family to name a few, often necessitate the updating of your will.

*For lawyers specializing in wills and estates in Edmonton click here.

Given the profound nature a will can have on the lives of your loved ones after your passing, it’s surprising to note that majority of Canadians don’t have a legal will. Although the topic of estate planning is often seen as grim or morbid, many find that once they’ve completed their legal will they experience a peace of mind knowing that their estate will be divided amongst their loved ones according to their wishes.

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