Estate Planning
Making a will is the most important part of estate planning. Depending on your circumstances, whether your will is simple or complex, it is important to make sure it is valid and effective.
A valid will requires that your will be properly signed and witnessed. It also requires that you have "testamentary capacity" at the time of signing and that you fully understand and approve all of the terms of the will.
A will that will help you accomplish what you want it to accomplish is a valid will. This requires an assessment of your wishes based on your personal and family circumstances, while applying the legal guidelines required by inheritance law.
Wills and Testamentary Trusts
Your will may include a "testamentary trust". This is a form of trust that can last long after your death.
Testamentary trusts are usually applied to.
- Create an effective tax plan for your children or other beneficiaries.
- Protect your estate from the threat of potential risks arising from family breakdown or other financial failure of your children or other beneficiaries, etc.
- Meet the special needs of the child or beneficiary with a disability.
Joint Wills
You can change your will at any time while you have capacity to do so. In some cases, the preferred model is to sign an agreement (usually with your own spouse) that the will cannot be changed without the consent of the other person (spouse). For example, if you and your spouse both have children from previous marriages, you may want to leave your property to each other with the additional condition that all of your and your spouse's children have equal rights of distribution upon your death. However, if you give all of your property to your spouse in your will, he/she can make a new will without restriction, giving all of the property to his/her children only (or to his/her new spouse). A "joint will" is a way to make sure that your estate goes where you and your spouse want it to go.
A joint will will require two wills to be made, as well as a separate contract stating that you will not change your respective wills.
Enduring Power of Attorney ("EPA")
An important part of estate planning is preparing for the possibility of your incapacity. This means drafting a durable power of attorney.
An Enduring Power of Attorney appoints one or more people to act in your name. Your "power of attorney" is the person who is appointed to manage your affairs under an enduring power of attorney. Your power of attorney may also give specific instructions or impose specific restrictions on how your attorney may act in your name.
