More than half of those living in British Columbia do not have an estate plan. It may be easy to list the reasons why, including the fear of facing their mortality, misconceptions about the purpose of an estate plan and, of course, the cost. Therefore, it might seem that those who choose do-it-yourself kits to create their wills have an advantage over those who die without an estate plan in place. However, some financial advisors strongly disagree.

A DIY will kit offers a will template for a nominal fee, and some websites even offer free downloads. The problem with a one-size-fits-all will is that every situation is unique. No template can cover every contingency or provide protections for special concerns that every family has. Additionally, DIY kits provide little to no assistance for those who may have questions. Even worse, many who use such kits may not even know what questions they should be asking.

Without knowledge of probate laws, someone using a will kit may not realise he or she has made a small but significant mistake. The ones who will deal with that mistake are those left behind after the will maker dies. In some cases, families are left with no recourse when a DIY will contains an error that results in a very different outcome from what the deceased would have wanted.

Wills can address far more than who inherits the assets in an estate. Those in British Columbia who have children, blended families, special needs or unique assets, among other things, would be wise to seek professional assistance when they decide to create their estate plans. Putting off estate planning is risky, but DIY wills may carry an even greater risk.

There are many reasons people might put off estate planning. One common reason is that they believe that it is unnecessary since all assets are co-owned by a spouse or, less commonly, children. The thought process here is that if one dies, the other will simply inherit the assets. While this might seem straightforward, forgoing wills for joint ownership can have negative consequences for some British Columbia families.

The first reason why this approach can backfire is that it is very difficult to remember every asset. While major assets like a home or bank account are unlikely to fly under the radar, personal items like jewellery, a piece of art, or a family heirloom may not have a designated co-owner. This can lead to conflict or ill feelings, and the court may need to step in to designate ownership of items, which is usually not preferable.

There is also the matter of both co-owners dying at the same time. In that case, the court would determine who receives the remaining items according to intestacy laws. This can get dicey when it is unclear which co-owner died first and, therefore, whose next of kin is entitled to the asset upon death. 

Once it is determined who gets the asset, additional complications can arise due to the fact that the beneficiary will receive the amount or ownership in full with no stipulations. This increases the risk that the asset will be mismanaged, especially if the next of kin is not financially responsible or personally prepared for the acquisition. These factors combined make it clear that discussing wills with a British Columbia lawyer is a good idea, regardless of one’s joint ownership situation.

Dealing with an estate after a family member passes away can be challenging and emotional, even if everyone is getting along. British Columbia families with pre-existing tension, complicated estates or mixed opinions are particularly at risk for conflict if wills are incomplete, confusing or unexpected. For that reason, it’s a good idea for people to take a few careful steps, such as prioritizing legal advice and communicating plans to help prevent friction among their beneficiaries.

The first step in any estate planning process is finding a lawyer who can be trusted and making sure he or she understands the situation at hand. Financial advisors, wealth managers and accountants can also be helpful to consult throughout this process. A full financial overview should be conducted to ensure that no assets are left unaccounted for in estate plans. This process also helps to set the executor up for a successful estate administration by centralizing all the documents one will need in the process.

Finally, it is critical to communicate plans with the family. All beneficiaries should be present at this meeting, as well as anyone implicated in the decisions. In the meeting, the basic intentions of the estate should be shared, along with who has been named as executor, the power of attorney and other involved people. This is also a good time to share one’s own expectations and hopes for the inheritance process, and to ask everyone involved to communicate and be transparent when the time comes.

Advance preparation can make all the difference when preventing conflict in estate administration. Even things that seem small, like preparing an online password list, can make a big difference when the time comes. Individuals who need support drafting wills, or those who have questions and concerns about wills in which they are implicated, should reach out to a British Columbia lawyer.

Most people understand the need to prepare legal documents to share end-of-life decisions, and to prepare for the distribution of their wealth after that. But, preparing a will is only the first step. British Columbia individuals and families should also take a look at wills and other plans to reaffirm details and make critical changes at key points in life.

Moments where a family structure changes are almost always good times to take a look at estate plans. For example, when a child is born, parents should designate guardianship. Upon marriage or divorce, confirming or creating stipulations around transfer of wealth to a spouse is important. Ideally, planners will do this in advance, even when just considering a divorce or marriage, to ensure every option remains available and paperwork can be completed.

The behaviour of beneficiaries can also indicate a need to review estate plans. For example, if a beneficiary is in the midst of a difficult divorce, at risk for bankruptcy or has a substance abuse problem, it may change the way in which it makes sense to pass wealth to them. Trusts can be used to protect inheritances in these situations. By contrast, a family member growing older and becoming more responsible may indicate it’s worthwhile to rethink executorship or powers of attorney.

In general, significant changes in one’s family or property should trigger the thought to review estate plans. To keep better track of these touchpoints, many individuals and families schedule regular reviews of their wills. A British Columbia lawyer can help guide this process and answer specific questions about when to revisit a plan.

When marriages end, chances are that one or both parties will move on to other partners. Statistically, two-thirds of divorcees between 55 and 64 told Pew Research they had remarried in a 2013 study. British Columbia individuals giving marriage another shot have several financial considerations to keep in mind, especially those who have accumulated wealth in between their marriages. One of the main things to consider is the details within wills.

Prior to a new marriage, it is helpful for each party to take a fully inventory of assets. Many might think this documentation only matters for couples who eventually split, but there are other reasons it is important. Documenting assets is a critical part of estate planning, and can help individuals clarify if certain items should be left to family members besides the new spouse. For example, an heirloom may be best suited to a child; this will need to be explicitly stated in a will or a spouse may get everything by default.

Often, couples with children from previous marriages prefer to keep certain assets separate from their spouse. This helps to protect wealth for their next of kin. It also makes sure that obligations from the previous marriage, such as spousal or child support can be met in the case of an untimely death.

Blended families have many things to discuss in terms of wills. Should stepchildren be included in the legacy plan? What about ex-spouses with whom there are still family ties or financial dependencies? Discussing these issues early and often, and putting them in wills with the help of an British Columbia lawyer, can help maintain financial well-being in a remarriage.