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Wills,
Personal Directive - What You Need and Why Why
you need a Will
In most jurisdictions there are laws, to ensure that in the event
of a person dying intestate, their property is divided amongst family
members in accordance with next of kin provisions. For example, if you die survived by a spouse but no children or
grandchildren, your surviving spouse is entitled to your entire estate.
However, a common law spouse must be named as a beneficiary in your will
to inherit your property. If you are survived by a spouse and children,
a "preferential share" of $200,000 will be given to your
spouse and the remainder of your estate divided equally amongst your
children. If you are survived by children only, then your estate will be
divided equally amongst them, with the shares of children under 18 being
paid into court by the estate trustee and payable to them at 18. If you
have no immediate family members, your estate would be distributed to
your parents, failing which it would be equally distributed amongst your
siblings, a situation which you may not wish to occur. In the rare event
that no heirs or next of kin can be identified, the estate will
"escheat to the Crown," which means the government will be
entitled to it all. In most situations, dying intestate and having your estate
distributed by a predetermined formula is less than ideal. Dying
intestate, you do not have any control over who should administer your
estate and care for your children while they are underage. This can
potentially cause disagreement amongst your family members and create
practical difficulties after your death, as well as result in additional
costs to your estate. Having a properly drafted will can minimize taxes and probate fees, leaving more money for your family members, and allows for customized trusts to be established for children under specified ages, which can be later than the age of majority. With a will, you can leave specific direction concerning the administration of your estate, and the guardianship and custody of your children. Finally, it is essential to have a will if you want to leave a part of your estate to a common law spouse, a friend, or a charitable organization. |
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Why
you need a Personal Directive If you become incapacitated without having a power of attorney
for personal care, and do not have a legal guardian, the governments of
most provinces, through appropriate agencies, will decide who your
representative will be for these purposes based on pre-approved lists
which prioritize who among your family members is to be appointed as
your representative. A family member who is lower in rank on this list
cannot override the decision of someone who is higher up. Having a Personal Directive reduces the likelihood of
disagreements amongst your family members concerning what medical
treatment or personal care would be most appropriate for you in a given
circumstance. Although you may assume that your family members know your
wishes, they may not truly understand what you would want in a difficult
situation. Your Personal Directive can be very specific or very general;
specifying your wishes with regard to pain relieving drugs in the event
of a painful terminal illness, or whether "heroic" measures,
i.e. a respirator, should be used to prolong your life in the event that
the prospects of recovery are slim. Personal Directive can, and should,
be updated as your wishes change over time. |
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