The power of a last will and testament: How your final wishes can make an impact

By Tim Hewson on August 28, 2020
Estimated reading time: 4 minutes

You can use bequests—possessions, sums of money and percentages of your estate—in creative ways to make a difference to people’s lives after you’ve passed on.

Photo created by rawpixel.com - www.freepik.com

We know that more than half of Canadian adults do not have a will. There are a variety of reasons for this, but one of the notions most commonly expressed by holdouts is that “it’s obvious who will be getting my estate.” In most cases, this couldn’t be further from the truth. In fact, if you are married with children, there is barely any consistency among Canadian provinces in determining the fate of your estate (defined as all the things you own when you die—homes, investments, vehicles, personal items, everything). You might be surprised that in most provinces the default is not that it all goes to your spouse. And for people living common-law or those who are single, it is far from obvious what would happen to your estate and possessions if you were to pass away suddenly. All of this is important, but it also misses a significant point: Writing a will allows you to do interesting and creative things with your assets. Your will does two things: it allows you to make key appointments, like your executor (the person who ensures your wishes are carried out) and guardians for your children, if you have any. It also allows you to describe who will receive what from your estate; this is accomplished through a series of bequests, and the recipients of these bequests are your beneficiaries. There are three types of bequests: possessions, sums of money and percentages of your estate. All three of these can be used in creative ways to make a difference to people’s lives after you’ve passed on. For example, have you ever thought about a particular possession of yours and felt that there may be a perfectly appropriate recipient, who could appreciate and treasure that item or collection? You may have a prized piece of sporting memorabilia, a collection of antiques or a piano. You may feel that your friend might appreciate your vinyl-playing turntable more than your spouse who still doesn’t quite understand the enthusiasm for it. Then there are people in your life to whom you want to show appreciation. Do you have a niece or nephew who could use your help? Perhaps pay for their first year of post-secondary education or fund an experience filled gap-year. What about your friends at the bridge club? Or the ukulele group? There was a wonderful article a few years ago about a cancer victim in the UK who left a bequest to his drinking friends for a fun weekend in Europe, on him. Perhaps a more significant impact can be made through “planned giving”—that is, putting a charitable bequest in your will. One of the great tragedies of recent years was Aretha Franklin dying without a proper will and watching lawyers fight over her $80-million estate. It was such a sad, missed opportunity, where her will could have set up a trust for aspiring musicians in her hometown of Detroit. An Aretha Franklin music scholarship could have touched thousands of lives, but instead, because she died without a will, the estate will likely be frittered away. You don’t even have to set up something as sophisticated as a scholarship fund. Simply setting aside 1% of your estate to a charity can have a significant impact on the recipient, and your other beneficiaries will hardly notice the difference. Some of us can find it difficult to be as charitable as we would like throughout our lives while we are working hard to make ends meet. Being charitable in your will is an easy way to make a significant contribution. If you do pass without a will, your estate is divided according to a strict formula written in provincial law. There is no nuance or creativity with this formula, and it could result in your assets simply being “liquidated” put up for auction and then divided between a number of beneficiaries. That’s a sad way to divide a lifetime’s accumulation of assets. So it’s important to give some thought to what you have and which people or organizations have touched your life. Think of some worthy recipients and write your will. When you get to the section dealing with charitable bequests, or specific gifts, you might actually be writing with a smile on your face, knowing that your life and your passing can make a difference. Tim Hewson is the president of LegalWills.ca, an online service that gives Canadians access to the same software lawyers use to prepare will documents for their clients.

Comments Cancel reply

E Haines says:

September 1, 2020 at 11:18 am

You suggest as an example “setting aside 1% of your estate to a charity.”

My notary in Quebec advised against this approach. He claimed that if you do, the charity may request a detailed audited statement of the value of the estate to ensure they receive what is properly due to them. He recommended a fixed sum instead.

Many thanks for these articles; I find them most useful.

Reply
Marsha Hall says:

September 2, 2020 at 7:40 am

Very informative article. If you are blessed to have had assets or money, when you die, why not help someone else who is less fortunate?

Reply

American and Canadian flags waving side by side

Ask a Planner

Can you move your investments from Canada to the U.S.?

Learn the tax implications of moving investments from Canada to the U.S. There’s lots to consider.

Can you move your investments from Canada to the U.S.?

Investing

Making sense of the markets: Looking back on 2024

Looking back at 2024, we go through the Canadian and U.S. stock exchange predictions, as well as crypto, Tesla...

Making sense of the markets: Looking back on 2024

Two glasses shown half-full to demonstrate the optimism from investment advisor Allan Small.

Columns

Why I’m optimistic about the markets in 2025–tariffs or no

This advisor isn’t losing any sleep over the markets. In fact, looking back at 2024 and forward into 2025,...

Why I’m optimistic about the markets in 2025–tariffs or no

A car steering wheel and a bowl of pasta, as symbols of how to get the best auto loan interest rate.

loans

Car loan interest rates: What’s the best Canadians can get?

Car loan interest rates can be as confusing as a complicated recipe, and just as daunting to navigate. This...

Car loan interest rates: What’s the best Canadians can get?

Newcomer to Canada buying their first car at the dealership asking questions of the sales person about getting a car loan.

Newcomers to Canada

Auto loans for newcomers—questions to ask when buying your first car in Canada

Buying your first car in Canada is like any other major purchase. Ask a lot of questions, not just...

Auto loans for newcomers—questions to ask when buying your first car in Canada

A woman using the MoneySense Finder tool at her work-from-home desk

ETFs

Buying ETFs in Canada Tool: The MoneySense ETF Screener

Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...

Buying ETFs in Canada Tool: The MoneySense ETF Screener

Budgeting

What is the Canada Carbon Rebate? Plus, dates and amounts for 2025 rebates

The Canadian government is sending out the last carbon rebate of 2024. See who’s eligible and how much you...

What is the Canada Carbon Rebate? Plus, dates and amounts for 2025 rebates

Canadian woman buying a car, as she learns to manage her money.

loans

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

Learn how to manage your money, understand your earnings, invest wisely and more, from this excerpt of Personal Finance...

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

Save

How much money should I have saved by age 40?

Sponsored By

CIBC

How much money should I have saved by age 40?

Save

How much money should I have saved by age 25?

Sponsored By

CIBC

How much money should I have saved by age 25?

The power of a last will and testament: How your final wishes can make an impact

Comments Cancel reply

Related Articles

Can you move your investments from Canada to the U.S.?

Making sense of the markets: Looking back on 2024

Why I’m optimistic about the markets in 2025–tariffs or no

Car loan interest rates: What’s the best Canadians can get?

Auto loans for newcomers—questions to ask when buying your first car in Canada​

Buying ETFs in Canada Tool: The MoneySense ETF Screener

What is the Canada Carbon Rebate? Plus, dates and amounts for 2025 rebates

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

How much money should I have saved by age 40?

How much money should I have saved by age 25?

Auto loans for newcomers—questions to ask when buying your first car in Canada