A
t a glance
What's in this issue:
Helping You Understand Financial Planning and Investments
Your Will — valuable preparation for your loved ones
By David Frazer
● Who should have a Will?
● The purpose of a Will
● Consequences of not
having a Will
● Assets outside your Will
● What is Probate?
Who should have a Will?
Everyone should take the time to complete a Will. You may think you only need a Will if
you have children or own your own house. However, the reality is that a Will is a crucial
document for anyone with any assets. It can make life easier for those who survive you
by ensuring the orderly distribution of your assets if you pass away. It also allows you to
appoint a personal representative to oversee the administration of your estate and trustees
to manage estate assets until those assets can be passed on to your beneficiaries. If you
already have a Will, it’s a good idea to update it periodically.
The purpose of a Will
Advantages
Wills do much more than simply distribute your assets to family members.
They can be used to:
✔ Establish trusts for the benefit of your children or spouse;
✔ Grant administrative powers to the trustees; and/or
✔ Nominate guardians for minor children.
This information is provided to
the Research Pension Plan
Members from the Research
Pension Plan Committee as part
of the ongoing information and
communication strategy.
This document and future
communications are available
online at:
www.usask.ca/hrd/benefits
You should seek professional help when planning your estate and preparing your Will.
Estate planning is complex and, in order to keep up with family law changes, your legal
counsel is best qualified to help you. It’s also a good idea to share your Will with your
executor (the person(s) you appoint to carry out your wishes) and your financial planner.
Your financial planner can assist you in minimizing taxes and probate fees, and can ensure
your Will fits your overall financial plan.
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Consequences of not having a Will
If you die without a Will, also referred to as dying “intestate,” your property
will be distributed according to the laws of the province where you live.
These laws may vary from province to province. Some people think their
spouse can look after their affairs, but if you pass away without a Will,
the courts may actually make decisions for you. Generally, in provinces
other than Quebec, that means the assets of your estate are frozen until
the courts appoint an administrator to wind up your affairs. How the courts
settle your estate can be very different from what you had intended.
For example, the court-appointed administrator usually sells your assets
for the best possible price at the time, which could mean that what they
get is far less than the real value. There are some people who feel preparing
a Will is not worth the cost. Keep in mind that legal bills often run higher
for estates without Wills.
What is probate?
Probate is the court process that
certifies the validity of a Will (with
the exception of notarial Wills in
Quebec) and the authority of the
deceased’s chosen representative.
This certification is documented in
what is commonly called “letters
probate.” There is a probate fee, which
varies from province to province to
certify a Will.* Your financial planner
can show you several steps to reduce
probate fees where possible.
*Note: in Quebec, the probate process differs from
other provinces and fees are minimal.
Assets outside your Will
Certain assets such as life insurance, RRSPs (in most provinces), and
What to do:
some matrimonial property (jointly owned spousal assets according to
Before creating your Will, consider
provincial law) may not form part of the property governed by your
the following steps to help simplify
Will. For instance, since annuity policies like a registered pension plan
the process:
or a registered group retirement savings account with an insurer provide for a beneficiary designation, having a named beneficiary other
than ‘estate’ means your account balance does not need to pass through
your estate. By keeping your beneficiary up to date with Sun Life
Financial, any money you hold inside your account would pass directly
to the beneficiary we have on file.
Creating a Will is fundamental to sound financial planning. Preparing
your Will today can help save taxes and probate fees, while reducing
the burden on your loved ones when you pass away.
✔ Gather all important information
regarding your assets.
✔ Discuss with your prospective
executor whether he/she wants to
assume that role.
Once you’ve written your Will:
✔ Make sure a copy goes to your
executor.
David Frazer (CIM, CFP) is an Education Specialist with Sun Life Financial in Toronto.
If you have a general question or suggestion about this newsletter, please send an e-mail to can_pencontrol@sunlife.com or write to At a Glance Newsletter,
Group Retirement Services Marketing, Sun Life Financial, 225 King Street West, 14th floor, Toronto, ON M5V 3C5.
This bulletin has been created exclusively for you. It addresses issues to help you with your financial planning and investments.
We encourage you to call our investment specialists at 1 800 387-2636 ext. 7351 if you have any questions.