Canadians have more options now than ever when it comes to drafting their wills. From doing it themselves, to consumer apps, to working with a lawyer, finding the right solution for each situation is incredibly important. After all, we’re talking about the documents that are going to ensure their families are well taken care of and that their legacy is protected.
In this blog post, we’ll outline top 5 reasons why individuals should work with lawyers to draft their estate plans and wills.
1) Avoid costly mistakes
Estate planning and will drafting can be a complex endeavour, and a lawyer’s expertise can save clients from costly consequences. What may seem like a simple gift or wish may have serious legal and tax repercussions; lawyers are familiar with the best and most effective ways to protect your inheritance.
For example, giving a particular asset to one beneficiary may mean that the other beneficiaries have to pay the income tax on that asset. Lawyers know how to include special clauses that can prevent a challenge to your will or protect inheritances from ex-spouses. Doubt about the meaning of a single word could lead to an expensive court hearing. Lawyers ensure that you’re saying exactly what you mean every time.
2) Save taxes and make smarter plans
Lawyers are well-versed in the best strategies to reduce probate fees and income tax on your estate. It’s not as simple as gifting away your assets. Family fights over wills are becoming more common in an increasingly complicated world, with various types of assets such as digital assets and foreign property. Proper advice can protect your estate from being sued.
3) Appoint the right guardians and trustees
What are the benefits and downsides of appointing a friend or family member as a trustee or executor? A lawyer can help you understand the pros and cons. They can also help advise you on key decisions, like who can replace an executor if they decide to quit. If there’s a paid executor, how is the fee calculated? Your lawyer can identify ways to avoid fights over commonly contested issues.
4) Navigate difficult situations and protect those you love
A lawyer’s job is to explain complex situations and help you make the best decisions for your family. For instance, they can help you find ways to ensure your spouse is looked after while protecting your inheritance from their future spouse.
Does your will care for your children? You may want your children to inherit a large amount without having it negatively affect them. Lawyers will provide you with the options to do this properly. Get the benefit of experience and expertise in deciding when and how much your children should receive. If your situation is more complicated – for instance, if you have a special needs beneficiary – one wrong decision with your will could jeopardize a lifetime of government benefits. A lawyer will guide you through the process and give you the peace of mind you need to ensure you make the right choice for the people you love.
5) Understand options for protecting your family
Your lawyer can illuminate the multitude of options that are available to you to protect your estate when you’re gone. They will give you the best options for your particular situation. Wills are highly regulated and must be signed in a very specific manner. Your lawyer will ensure that everything is handled smoothly and that all the T’s are crossed and I’s are dotted.
Source – eState Planner