When we are alive, we have reasonable opportunities to set and keep our personal finances in good order. When we have died, our chances are gone. Others have to see after our financial affairs, the distribution of our estate.
We therefore need do all possible while we are alive and in good health to ensure that we do not create confusion and mayhem for our dependents or inheritors.
Every person who is 18 years old or older and has some interest in how the assets s/he owns will be distributed in the event of their death can and should make a will. We do not know when death may come knocking.
In fact, if we generally had a fair idea of when the end of each life would be, estate planning would be much easier. Death is uncertain and its timing unknown. Financially, we should be prepared so that death does not come around suddenly and catch us napping.
Even with all the warnings beforehand, some do not take steps to sort out their estates before they die. Preparing a will can be an emotionally painful and unpleasant task. It is usually very difficult to confront one’s own mortality. Just imagine how more difficult it could be if you have to complete this task when you are sick or worse, terminally ill.
Sometimes, though, this omission is just the result of carelessness, ignorance, fear that preparing a will hastens death in some way, and/or laziness or procrastination.
We need to examine ourselves: are you 18 years or over? Do you have possessions that you care to leave to someone? Do you have a will? If not, why not?
This article deals with preparing and planning for your death – sudden, early or normal death. Having discussed your intentions with the relevant people, it presents the basic information you need to prepare for writing your will:
• Your full name, maiden name and other names used along with your birth date, address and spouse’s name – anything that helps to specifically identify you from someone with a similar name/address.
• The name of your executor and the name of an alternate if the first person cannot execute your last wishes for any reason.
• A list of all your assets – savings; term deposits; real estate; cars; bonds; stock/shares; jewellery; household furnishing; collectibles; other property, each with a clear enough description to leave no doubt in identifying them.
• The names of would-be beneficiaries of your will and the allocation of your assets that you choose to make to each. Obviously the allocation must add up; be careful to check the arithmetic.
• The name and address of the proposed guardians for your children should your spouse/current guardian die before they reach 18 years of age.
• The name and addresses of two witnesses who will serve to attest that you did sign the document as your last will and testament and that you were sound in mind at the time.
• Counsel of an attorney-at-law where your estate is complicated or, say, worth over $1 million.
With this information in hand, you are in a position to approach your legal counsel about preparing your last will and testament, or where your estate is relatively simple, you may wish to prepare it yourself.
The next article presents the structure of this important aspect of your estate planning – your last will and testament.
• Louise Fairsave is a personal financial management advisor providing practical counsel on money and estate matters. Her advice is general in nature; readers should seek personal counsel about their specific circumstances.