Preparing your will checklist

Your executor will locate all of your property, pay any debts and funeral costs, prepare the final tax return, and distribute the rest of the estate as the will instructs. Your executor may need to probate the will. This is a legal process that confirms the will is legally valid.

You may choose two or more people to act as co-executors. The co-executors must act together, unless your will says otherwise. Letting each co-executor act on their own can make their work easier, because they won’t need to make every decision together. Some will-makers would rather have their co-executors make decisions together, so each can keep the other accountable.

Factors to consider when choosing an executor include the following:

• Willingness. This is perhaps the first thing you should turn your mind to. No matter how qualified or trustworthy someone is, if they don’t want the job, they’re likely not a great option.

• Trust and familiarity. The person you choose should be someone you trust to carry out your wishes. It’s best if they’re familiar with your situation.

• Time and ability. The job will be tougher if your affairs are complicated. The person you choose should be organized and a good communicator.

• Age. Your executor should be someone who is likely to outlive you. (But it’s not recommended to appoint someone under age 19.)

• Location. Your executor can be someone who lives outside the province, but it’s more convenient if they live close by. It’s also simplest to appoint someone who is a Canadian resident and lives in Canada. There are significant tax consequences if they don’t live in the country.

Ask the person you have in mind if they’re willing to be your executor. If they agree, give them a copy of your will. Discuss your wishes with them. This includes your wishes for organ donation, burial and cremation, and your funeral service.

It’s important to name at least one alternate (that is, a backup) executor in your will. If your first choice isn’t available, the alternate can step up.

A will only deals with estate assets. It generally doesn’t cover property you own in joint tenancy with someone else, such as a home or joint bank account.

A will also doesn’t cover assets where you’ve designated a specific beneficiary to receive proceeds, such as an RRSP or life insurance policy. Remember to keep your designations up to date. They don’t change automatically if, for example, you divorce and remarry.

These kinds of assets are said to “pass outside of the will.” This means they’ll get distributed in other ways.

Here, you can learn more about the types of assets that are typically not covered by a will.

Make a list of all of your assets and liabilities. Take note of how they’re owned (such as if assets are held jointly). Having a good picture of everything you own, and its value, means you know what you can give away.

Who do you want to gift your money and property to? People often choose to leave their things to family members, dependents, charities, or friends.

Consider all possibilities. What if your spouse dies before you? Will you have more children or grandchildren in the future? What do you want to happen if one or more of your children don’t survive you?

Have you named alternate beneficiaries? If you don’t, the law decides who gets that share.

You can leave specific gifts, such as a sum of money or a particular item, to named people or charities. Your will should also say who gets the residue of your estate. That’s whatever is left after your executor pays all debts, expenses and taxes, and gives out your other gifts.

If, when you die, there isn’t enough to go around, the law sets the order in which gifts in your will are reduced: the residue first, then gifts of money, then gifts of particular items. This means the people who get the residue could end up with less than you expect, or nothing at all. Think about how your gifts would play out if your estate were smaller than planned. If that’s a concern, you might want legal advice to help you think it through.

You’re generally free to leave your estate to whomever you want. However, your spouse or child may dispute your will if they feel you haven’t adequately provided proper maintenance and support. The court can modify a will in the interest of fairness.

If you’re thinking of leaving a spouse or child out of your will, or distributing your assets to your children unequally, get legal advice.

In your will, you should name a guardian for any minor children you have. A guardian has the legal authority (and the corresponding duty) to care for the interests of another person. The appointment would take effect if, when you die, there is no living legal guardian and the child is under 19.

Be sure to provide the guardian some money to cover the costs of raising children.

Create a trust in your will for gifts to any minor children. Otherwise, their share of the estate may need to be paid to the Public Guardian and Trustee in trust, who’ll manage it for them until they turn 19.

Think about what age you want minor children to have access to their gifts. For example, you may feel your child will be better able to manage their money at age 25 rather than 19.

Create a trust in your will for gifts to any adult who is considered by the law to be mentally incapable of managing their own financial affairs. Otherwise, their share of the estate may need to be paid to the Public Guardian and Trustee to be managed on their behalf.

If the adult is your dependent, talk to a lawyer or notary about what other arrangements you might want to put in place.

If you have a preference for burial or cremation, decide whether you want to record it in your will. A preference written in your will, or in a prepaid contract with a funeral home or cemetery, is legally binding, unless following it would be unreasonable, impracticable or cause hardship.

A preference you only tell someone or put in a separate letter isn’t binding. That means they don’t legally have to follow your instructions.

Your executor is responsible for arranging your funeral. Wishes about your funeral or memorial service aren’t legally binding, even if they’re in your will. Share them with your executor and family, including any cultural, spiritual or religious practices that matter to you, so they can follow them where possible.

A will won’t be valid unless you’re at least 16 years old when you sign it.

To make a valid will, you must be mentally capable of making a will. Generally, this means you understand what a will means, and what it does. As well, for a will to be valid you must freely agree with what the will says when you sign it. A will isn’t valid if someone pressures you to make it, or to give them a gift in it.

If someone is pressuring you, you may want to get some legal help.

For a will to be valid, it must be in writing. It can be typed, handwritten, or in electronic form. It must also be dated.

It’s common practice to say at the beginning of a new will: “I hereby revoke all my prior wills and codicils.”

Destroy any previous wills. And let previous executors know you’ve made a new will.

For a will to be valid, it must be signed on the last page by the will-maker. You must also date the will when you sign it. Under the law, you can sign the will using an electronic signature.

If you can’t sign the will because of illness or disability, you can ask someone to sign it for you.

You must sign your will (or acknowledge the signature as yours) in front of two witnesses who are present (either physically or electronically). The witnesses must then sign the will as you watch. You and the witnesses should initial each page in front of each other.

Generally, the witnesses should not be the same people who are executors or beneficiaries under the will — or their spouses.

Under the law, a lost will is considered to have been destroyed and cancelled. If your original will is in paper form, store it in a safe place that’s fireproof, waterproof, and tamper-proof. If your original will is in electronic form, make sure that it’s secure and that your executor knows how to access it.

You can register your will with the provincial government’s wills registry. While the law doesn’t require this step, it’s a good idea. It lets others know where the original copy is kept. To register your will, you need to file a wills notice with the wills registry.

Your executor needs to be able to access your original will easily after your death. Also, consider giving them their own notarized copy of the will. Or, if you have an electronic will, let them know how they can access it once you pass away.

If it feels safe and right for you, explain your plans to family members and beneficiaries. This includes anyone who may be entitled to a share of the estate, but isn’t getting anything under the will. Talking with them now may prevent problems later.

Consider doing this. It’ll make life easier for your executor. For example, record your bank accounts, retirement plans, insurance policies, real property, and pension benefits. Note any items that are owned in joint tenancy or which name a specific beneficiary. These are dealt with outside the estate, so the executor doesn’t have to manage them.

You should review your will and your choice of executor every few years. Also, consider updating your will if your circumstances or wishes change.