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We may not all enjoy planning for the future, but doing so is a necessity if we want to ensure that our loved ones are protected when we die and that our estate is dealt with how we would wish. But should you set up a will, a trust, or both?
The answer to this question isn’t always simple, as these tools serve different purposes, but speaking with a professional will executor in Alberta to understand your options can help you make a more informed decision.
Wills explained
A will is a legal document that outlines how you wish your assets and affairs to be taken care of when you die, and it allows you to name an executor and designate beneficiaries. The executor must be someone that you trust is able to fulfill your instructions, and your beneficiaries are those whom you wish to receive certain assets such as money, property, and personal items.
Canadian law mandates that for a will to be valid, it must meet certain legal requirements, which may vary from province to province. The will is typically validated in court through a process called probate. This can take time and involve fees.
Is a will the right choice for you?
For those wanting a relatively simple way of legally distributing an uncomplicated estate, a will is often the most suitable choice. A will provides clear instructions for after your death, including how to divide your property, naming an executor, appointing a guardian for your children, and so on. Wills do go through probate, but this process helps to avoid misinterpretation and reduce the likelihood of disputes.
Is a trust the right choice for you?
Wills work well for many Canadians, but a trust may be advisable if you prioritize maintaining privacy, avoiding delays, or putting clear conditions on the management and distribution of assets.
For anyone with unique family dynamics or a more complex estate, a living trust, also known as an inter-vivos trust, can provide greater control over how and when assets are managed or distributed. Depending on how it is structured, it can allow you to manage certain assets during your lifetime while setting out clear instructions for what should happen to them after your death.
Trusts don’t go through probate, which can speed up the process of settling your estate with enhanced privacy.
What about a will and a trust?
Combining a will and a trust can be a smart move for some Canadians, especially for those with estate plans that demand both simplicity and structure.
While wills provide legal instructions for your estate and give you the opportunity to appoint an executor of estate in Alberta when you die, living trusts can help manage certain assets while you’re still alive and allow for a transfer that is more private and controlled when you pass.
When combined, a will and a trust can be particularly helpful if you have ongoing obligations, such as taking care of a loved one with special needs, or if you wish to keep some financial matters private while still having a will in place to cover the rest of your estate.
For Canadians who simply want their wishes documented formally, want to ensure their belongings go to the right people, or need to appoint guardians for their children, a will may be all they need. But for those seeking to avoid probate or have more control over the passing down of assets, a living trust may be a better option. Ultimately, a conversation with a wills and estates lawyer can help you determine the best option for your specific circumstances and desires.
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