Crafting a will is a major legal task, holding significant importance after you're gone. That's why it's vital not just to have one, but to ensure its carefully drafted. Drafting a will demands careful thought, and grasping its key components is vital for effective planning.
If you're preparing to draft your will and want to understand its contents before meeting with the notary, this article will walk you through its essential clauses.
Whom will you appoint as liquidator?
When crafting your will, it's crucial to appoint an estate liquidator who will oversee the distribution of your assets according to your wishes after you pass away.
Whom you choose as your estate liquidator is a deeply personal decision, and it varies from person to person. Many opt for a trusted individual, such as a family member or close friend, while others prefer to designate a professional like a notary or lawyer.
Regardless of who you choose, it's vital to have a conversation with your selected liquidator beforehand. This ensures they understand their responsibilities and are comfortable carrying them out effectively.
What is the role of the liquidator?
When appointing a liquidator in your will, it's essential to outline the specific duties they will undertake. Typically, these responsibilities include:
- Organizing your funeral service according to your directives.
- Settling your debts and managing various creditors.
- Closing your accounts across various institutions.
- Making an inventory of your possessions.
- Facilitating the distribution of your assets to your heirs as per your instructions.
- Coordinating the sale of your assets if instructed.
- Ensuring completion of your final tax return, among other administrative tasks.
Will you remunerate your liquidator?
Compensating the estate liquidator is a common practice, given the complex demanding nature of the role. Here are some general guidelines regarding remuneration:
- The liquidator should be reimbursed for any expenses they incur while carrying out their duties.
- If the liquidator is a professional, they are entitled to receive their customary fees for their services.
- If the liquidator is also an heir, there is no mandatory requirement to provide compensation.
- If your will does not specify remuneration, the decision regarding compensation may be left to the discretion of the heirs.
Clearly defining the compensation terms in your will ensures transparency and clarity regarding the financial arrangements associated with the estate liquidator's responsibilities.
The different types of bequests
When drafting your will, you have the flexibility to distribute your assets among your heirs according to your preferences. There are typically three primary types of bequests:
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Universal bequests: This involves leaving all your assets to a single individual. For example, a husband might choose to leave his entire estate to his spouse.
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Bequests by universal title: Under this arrangement, your assets are divided into shares among multiple beneficiaries. For instance, you might designate half of your assets to your spouse and the other half to your children. Additionally, you may allocate specific assets, such as your rental property to your brother or your entire business to your partner.
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Bequests by particular title: This type of bequest involves the specific transmission of assets to designated heirs. For example, you might leave your classic car to your son, your cottage to your parents, and an antique family heirloom to your sister.
Who will you trust to care for your minor children?
Selecting a guardian for your minor children is a critical decision when drafting your will. This designated individual will be entrusted with the legal responsibility of caring for your children and overseeing their well-being until they reach the age of majority.
Most people choose someone they trust implicitly, often a family member or close friend, to serve as the guardian. However, regardless of whom you choose, it's crucial to engage in thorough discussions beforehand to ensure they are willing and capable of assuming this significant responsibility.
Do you have to defer bequests to minors?
When you include minors as beneficiaries in your will, it's crucial to address their inability to manage inherited assets until they reach the age of majority. During this period, their legal guardian assumes responsibility for overseeing the bequeathed assets on their behalf.
Moreover, you may opt to defer bequests to minors by implementing specific conditions or restrictions regarding the timing of the inheritance. For instance, if you're leaving a substantial sum of money or real estate, you might stipulate in your will that the beneficiary cannot access or manage the inheritance until they reach a certain age, such as 25, or until they have completed their education.
Do you have special funeral arrangements?
It's essential to clearly outline your funeral preferences in your will to ensure they are carried out according to your wishes. However, it's important to note that wills are not always consulted immediately before a funeral. Therefore, it's advisable to document your preferences in a separate, easily accessible file or document as well.
Protect yourself: revoke previous wills
Protecting your estate planning also involves revoking any previous wills you've made. While creating a new will automatically invalidates prior versions, including a clause explicitly stating the revocation of previous wills adds an extra layer of protection. This clause can help mitigate potential confusion or disputes among heirs regarding which will is the most current and legally binding.
Use the services of a notary
Engaging in the services of a notary when creating a will is strongly advised. This ensures that your final wishes are accurately documented and legally protected. A notary can provide valuable guidance throughout the process, helping to minimize potential issues and ensuring that your will meets all legal requirements.
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