Page 160 - A Canuck's Guide to Financial Literacy 2020

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In life, two things are certain – death and taxes. We can’t avoid one but we can try to avoid
the other. The goal of estate planning is to minimize taxes at death. Estate planning is all
about leaving a legacy and distributing your wealth in a tax and efficient manner through
several elements such as last will and testament, power of attorney, estate trusts and more.

Wills

One of the first steps to estate planning is having a will. A will also known as a “last will and
testament” is a legal document governed by provincial legislation that lists the final wishes
of the deceased in how they wish to divide their property.

If the person making the will is a male then they’re known as a Testator. And if female,
they’re known as Testatrix. A will typically names an executor, provide guidance on how
debts and taxes would be paid, list inheritances, provide guidance on care for minor
children and so on. A person dying without a will is deemed to have died “intestate”,
discussed below.

Writing a Will

When creating a will, it’s important to be aware of your residency and the property that you
might own in other provinces. If you’ve written a will in Ontario and then relocate to British
Columbia, the laws of that province will be responsible for settling the estate and dealing
with matters such as intestacy, division of assets, family law, etc.

Types of Wills

Holograph Will

▪ A holograph will is a handwritten will signed and dated by the testator or the
testatrix. This type of will is considered to be legal in Canada if the handwriting
can be verified.

English Form Will

▪ This is one of the most common types of the will, particularly in Canada. Wills
are put together by the testator/testatrix and signed by two witnesses.
Notarial Will

▪ A Notarial Will is common in Quebec and is drawn up by a notary. It’s usually
written in the presence of one witness or two in certain circumstances such as
when the testator is blind.

International Will

▪ In today’s global environment, people are able to move freely between countries
and own multiple properties. International wills deal with property that are in
other parts of the world. These types of wills are written and meet specific
standards of the Washington Convention Providing a Uniform Law of an
International Will (1973). Countries that have accepted the convention include