No one likes to think about their mortality. But from a money management perspective, making a will is one of the most important things you can do.

Most of the time, people make a will when they’re going through a big life change like getting married, starting a family or getting ready to retire. But even if you don’t have a big change coming up or a lot of assets, having a will can simplify tasks like paying your finals bills if something should happen to you.

Everyone needs a will – here’s why

A will is a formal document that outlines how you want your money, property and other assets – also called your estate – to be distributed after your death. If you die without a will, you’re considered to have “died intestate”, and a court-appointed representative manages your estate settlement through a process called probate. This may not be what you want, for a number of reasons:

• If you have children or other dependents and something happens to both you and the other caregiver, a court will decide who will take care of them.
• Without a will, your estate will be divided according to your province's laws and distribution formula.
• You'd lose the opportunity to make specific gifts, such as charitable donations, or provide specific instructions that provide for your family and loved ones.
• Estate settlement can take longer and be more costly. Creating a will gives you the ability to decide in advance who will handle your affairs after your death, and it can help your loved ones steer clear of unnecessary financial or emotional stress.

7 steps for creating your will

1. Make an asset inventory

To make sure your will includes all of the assets to be distributed, an important first step is compiling a list of all property, money and investments in your name. Your list should include bank and investment accounts, stock or bond certificates, life insurance policies, pension statements, property deeds and titles for cars and boats. If you own a business, include your corporate records as well.

Key points to consider:

This can be a big task, especially if you haven’t done it before. But keeping a thorough record will help the probate process go more quickly.

2. Decide which type of will you’ll create

Lower-cost options include do-it-yourself will kits or online platforms that provide a more customized approach. Working with an estate planning professional can help ensure that your will follows the laws of your province. They can also find opportunities to minimize your estate costs and help the settlement process go more quickly.

Key points to consider:

DIY wills are a good starting point if your finances are relatively simple. More complex situations, like having a blended family or owning property outside of Canada, would benefit from professional financial and legal advice.

3. Choose your executor carefully

An executor’s job is to carry out your final wishes by gathering estate assets, paying any debts and taxes, and distributing the estate to your beneficiaries. The ideal person is someone you trust, who has enough financial knowledge and experience to make decisions on your estate’s behalf and can work well with your beneficiaries. It’s also ideal if they are likely to outlive you, and live close enough to you so that it’s relatively easy to manage any in-person tasks or transactions.

Key points to consider:

Executing a will is a big responsibility. Before you name one in your will, make sure they’re comfortable with taking on the role. You can also consider appointing a co-executor or hiring a professional executor.

4. Select your beneficiaries and any bequests

Your will must identify your beneficiaries, or people that you want to receive any property or belongings after your death. This can include family members, friends, or charitable organizations. Specific gifts can include real estate, lump-sum cash gifts or bequests like jewelry, art, family heirlooms or items with sentimental value.

Key points to consider:

If there’s anyone that you specifically want to exclude in your will, you should seek legal advice.

5. Designate a guardian for your children or pets

If you have children, one of the biggest questions when making a will is deciding who would care for them if something should happen to you and their other parent or caregiver. When choosing a person or couple as guardians to your children, important factors include whether they have a stable financial and home situation, have similar values to your own, and whether they have the capacity to take on this responsibility. If you have a pet, you can also appoint a guardian to ensure that your furry friend will be cared for by someone you trust.

Key points to consider:

Like an executor, the role of a guardian is a big responsibility. When choosing a guardian, make sure they’re willing and able to take on the role.

6. Include funeral or burial wishes

If you have preferences about having a burial or cremation, you can include your wishes in your will. This can help guide your loved ones’ decision-making and give them peace of mind in an otherwise difficult time.

Key points to consider:

Pre-paying for a funeral can remove a significant expense that your family or estate must cover after your death.

7. Sign your will and store it securely

In general, a legal will must be signed in the presence of two witnesses who are aged 18 or older and mentally sound. A witness can’t be named as a beneficiary in your will or the spouse of a beneficiary. British Columbia is the only province that allows wills to be digitally signed, witnessed, and stored. If you want to keep a printed copy of your will, keep it in a secure place.

Key points to consider:

Let your executor and other people you trust know where your will is located.

Congratulations, you’re done!

You’ve taken an important step in creating peace of mind for your loved ones. As life changes, so should your will – so plan to review it every year to keep it up to date.

Heads-up: A will is just one part of a full estate plan

Ideally, an estate plan also includes Powers of Attorney to make financial or health decisions on your behalf in case you become incapacitated. And, because estate settlement fees and taxes can be significant, it can help to work with a financial expert to review your full financial picture and find ways to leave more for your beneficiaries.

If you have questions or want help getting started with your will, we’re just a click away.