COCHRANE— Life is full of surprises, but unfortunately the unforeseen could result in headaches and hardships if we are not organized in the event of a death.
It is a subject many don't want to touch on. What will happen with your assets when you pass away? Do you have a will and estate plan? It seems these questions soon begin to consume our minds as more years tick on the birthday clock.
So where does one start when it comes to preparing for our inevitable death?
An estate plan considers all of your money and assets and a will deals with everything including the estate, how finances will be distributed upon death, appointing guardians for minors and appointing an executor who will act as the person who makes sure your wishes are followed.
One of the most important reasons individuals should have their estate documents done is for certainty explained Erin Barvir, lawyer at Mountain Vista Law, adding this will ensure your money is going where you want it to go and not where the government decides it should go.
In most wills Barvir sees, 99 per cent of the time all assets will be left to the spouse. This way funds can be used to help with the upbringing of any children.
Barvir added that wills can be created at any age, and at times, the younger the better. If a child were to pass away and not have a will, a challenge could arise in selling something as simple as their vehicle.
"If you don't have somebody named as the executor, then you have to go through a very expensive, convoluted and complicated process through the courts to be allowed to deal with something like that, whereas if you had a will it's straightforward you go to the registries and it can be done," she said.
In terms of not having a will Barvir said the outcome is solemnly dependant on the family dynamic. Typically all joint assets would go to the lone survivor, or closest relative.
"That may be spouse and kid(s) combined which can cause some issues because a spouse may need access to all the money but they have minor kids and we have to hold some in trust," explained Barvir, adding holding funds is in accordance with The Estate Administration Act in Alberta.
Alberta is one of the few provinces that still accepts holograph wills. Barvir explains if it's purely handwritten and signed by the testator, it can pass.
"It can work certainly for really straight forward things like 'everything to my wife,'" she said.
During COVID-19 times, Barvir said there has been an increase in individuals wanting to have these documents looked after including powers of attorney and personal directives which are documents that assign a certain individual(s) to take care of matters while one is alive but incapacitated to make decisions on their own.
"I think that some people are getting a little freaked out by world events and people just have more time to think about those sorts of things that they've maybe put off for years and years."
