Making a will is good for your mental health as well as your financial health.
I get why so many people push estate planning to the back of their priority lists – going through a process that forces you to contemplate your own death is never going to be easy. However, I recently came across a Stanford Law Review article that reinforces my long-held view that confronting your own mortality in this way may actually be good for you.
The authors – professors at universities in California and New Jersey – highlight the psychological benefits that testators have reported after making a will, including the sense of relief that comes with getting their affairs in order.
Previous research cited by the academics also suggest that even the execution of your will can reduce some of the testator’s death anxiety, because of the ritualistic nature of the actual act of applying your signature to the document.
But it’s not just you who will benefit psychologically from getting a will in place: your surviving friends and family will also thank you for having something in writing about your estate and its disposal, should the worst ever happen, giving them some much needed certainty during a period of emotional and financial volatility.
Otherwise, it would essentially be the government who decides who gets what, thanks to Ontario’s Succession Law Reform Act, which sets strict rules for the distribution of assets in cases where the deceased left no will.
Under the Act, the deceased’s surviving spouse gets the first $350,000 from any estate, with the remainder divided between the spouse and any surviving children. When there is just one child, the assets are split equally with the spouse. If there is more than one child, then the spouse gets one-third of the amount over $3500,000, and the remaining two-thirds are divided equally among all the children.
However, the Act makes no provision for the individual circumstances of the deceased, which can lead to issues, especially if you have anything but a conventional family arrangement. Testators with partners they are not legally married to, estranged spouses or blended families can reduce the risk of an estate dispute by making sure they have an up-to-date will in place reflecting their wishes.
For those who are still in doubt about the value of an estate plan, I would add that a properly drafted will helps testators take control of their affairs by minimizing the tax their estate will pay, establishing funeral and burial wishes and choosing guardians for their minor children.
Once you’ve taken the plunge and drafted a will, it’s a good idea to revisit your choices every few years, since the beneficiaries you named as a young adult may no longer make any sense after the passage of some time. Major life events – think the birth of a child, marriage, divorce, or a major change in net worth – should also prompt a fresh look at your estate plan.
Disclaimer: The content on this website is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this website are advised to seek specific legal advice by contacting members of Laredo Law (or their own legal counsel) regarding any specific legal issues.
