Planning your succession
What will your heirs inherit?
PROTECTING YOUR WEALTH STARTS WITH PLANNING YOUR SUCCESSION
The will remains the key element in successfully planning for the protection of wealth and its bequest to your chosen heirs. Of course, a will—any will—is good, but a notarial will is best of all.
If you're not convinced, survey those around you. And if you would like to confirm your findings, take your survey outside a funeral home. Listen to what is being said in the reception areas and hallways, where soap opera scriptwriters could gather some juicy material for their next plot.
One person talks about her late cousin who left a long-winded handwritten will that had not been updated in 20 years. The will must be probated and the whole process, which includes the disposition of property, looks like it will take forever.
Another woman, partner of the deceased, is upset because his ex-wife will get her hands on most of his assets. Their divorce had never been finalized and the couple lived in a de facto marriage. “No, no,” she keeps repeating, “He hadn't made a will.”
In another tale of woe, the eldest surviving sister of a man tells about turning her brother's house upside down without being able to find his will. Perhaps it is in his condo in Florida. “What will happen to this property?” she worries, once a friend informs her that, under American tax laws, she will be required to pay the transfer tax on the condo.
In many cases, however, you probably won't fully understand what you are hearing. Often, the comments disintegrate into insults, which then lead to quarrels between different people who, nevertheless, all belong to the deceased's “big, happy family.”
A notarial will and estate planning ensures that your wealth is distributed in accordance with your wishes.
Let's be honest: the time of mourning does not always serve the purpose it should. It would be so easy to settle your affairs while you are still alive so that tugs of war, uncertainty and confusion do not follow in the wake of your passing.
New civil code
Since the new Civil Code of Québec came into effect in 1994, settling a succession has become trickier and more complex than ever. The law imposes rules and a precise procedure that must be followed during the liquidation of a succession, which includes appointing a liquidator, taking inventory, paying debts, distributing assets, etc.
In the absence of a will, the law designates the heirs, who then appoint the liquidator. No wonder tension rises in such a family situation.
The notarial will has the advantage of including precise instructions as to the disposition of your wealth. It identifies heirs, names liquidators and defines their powers, specifies methods for vesting assets (particular or universal legacy, testamentary trust, etc.) and measures for reducing taxes, appoints a guardian for minor children, and so on.
Notaries can help clients improve their wills and overall estate planning through such measures as the wealth inventory, mandate in case of incapacity, examining the content of insurance policies and retirement plans, and where assets are held abroad, preparing a will in another language to facilitate the transfer of property to heirs.
In addition to the many other benefits of preparing this legal document with a notary, the acknowledged expert in the field, the notarial will has the tremendous advantage of never requiring probate and of being recorded in a register so it is easy to find.