The Importance of Creating a Will in 2024

This article was written in partnership with Willful, the easiest way to make your online will from home. Over 150,000 Canadians trust Willful to create their legal wills and power of attorney documents.

The word “new” appears a lot at the beginning of the new year. There are new resolutions, new habits, new jobs, new haircuts and more. Among those new resolutions, more and more Canadians are thinking about their own future, and that of their loved ones, which is why creating a last will and testament is the number one financial resolution of 2024.

Canada’s #1 financial resolution of 2024

Willful, an online will and estate planning platform, recently asked Canadians about their financial resolution for 2024. Options ranged from creating a budget to opening an RESP for a child. But the #1 answer was creating or updating a will!

Long-term financial planning is crucial for achieving your financial goals, so the fact that this resolution is #1 shows that many Canadians are prioritizing making future-conscious financial decisions.

Why is creating a will important?

Creating a will is an essential step toward ensuring that your assets are distributed according to your wishes after you pass away.

If you don’t have a will yet, here are five reasons why you should get one in 2024.

1.   Choose how your estate gets distributed

Your will serves as a legal document that outlines how you want your estate to be managed and distributed when you pass away. This includes assets such as solely owned property, investments, bank accounts, and personal belongings.

Without a will, your assets would be subject to intestacy laws, laws which will likely distribute your estate to your spouse, children, or other family members. This can result in your estate being distributed to people based on family ties rather than your own preferences. Guardianship of your minor children would also be decided by the courts, and the person chosen may not be who you would have chosen either.

If you’d like to choose how your estate gets distributed, you’ll need to create a will.

2. Protect your loved ones

Creating a will goes beyond just managing assets; it is an act of love and responsibility towards your loved ones.

By stating your wishes in your will, you provide a roadmap for your family and friends during a challenging time. This clarity can help prevent misunderstandings, disputes, and potential conflicts among heirs and beneficiaries.

A will also lets you appoint a guardian for any minor children or pets, ensuring their care and upbringing according to your chosen preferences.

In an era where families may be dispersed across the globe and relationships might be complex, a will can become a pillar of support for those left behind. Your will protects your important loved ones such as common-law partners, friends, and pets.

3. Choose your own executor

Who do you trust with the role of administering and managing your estate? Your will is where you have the opportunity to choose the right person as your executor.

This person should be someone you trust for the role and someone who also has the mental capacity, energy, and skills to administer the estate properly. They would need to mitigate any disputes or defend the will if it were to be contested.

This choice isn’t irreversible. If you make your will and choose an executor (or beneficiary or guardian), and later down the line decide that you’d like to assign the role to someone else, you can update your choices anytime.

4. Make your own legacy

A will allows you to leave behind legacy gifts to charities or causes you support. Many not-for-profit organizations are supported by legacy giving and allow you to pay it forward to help those who need it most.

5. Get peace of mind

Making a will starts by thinking differently about your assets. During the process, you have important and meaningful conversations with your loved ones, you consider how you want to be remembered, and you take action for those who are important to you.

Making a will, at the end of the day, gives you peace of mind knowing you’ve taken steps to look after your loved ones in the future.

Debunking myths about wills

You don’t need a will until later in life

Once you’ve reached the age of majority in your province, you’re officially eligible to create a will. Once you start solely owning your own assets, you can never be too prepared.

Getting a full estate plan, including a will and power of attorney documents, is important not just for your loved ones but for yourself. In the event you’re unable to make decisions for yourself, your wishes will be documented and you’ll be prepared if anything ever happens.

If you want everything to go to your partner, you don’t need a will

If you’re legally married, your spouse will likely receive a portion of your estate if you pass away without a will. Whether they receive everything depends on whether you have children or not.

But if your partner is a common-law partner, they aren’t protected by succession laws. If you pass away without a will, they will likely receive nothing. That’s why it’s important to make them a beneficiary of your estate in your will.

Your debts are passed along to the beneficiaries in your will

While a person’s debts don’t exactly disappear when they pass away, they aren’t put on the shoulders of your loved ones either. When you pass away, the executor of your estate is responsible for paying off any outstanding debts and liabilities with your estate.

If the estate itself can’t cover the debts, the gifts to beneficiaries will be used. If those cannot help cover the debts either, then the debts become insolvent and things are finished there.

You only need a will if you’re rich and have a lot of assets

Making a will isn’t just about distributing assets. It’s also where you can name executors, appoint guardians for your children and pets, leave gifts for charities, and document your funeral and burial wishes.

Estate planning is too expensive

In Canada, you don’t need a lawyer to make a will, which means you can even make a handwritten will for free, so long as they are legal in your province. But what if you forget to consider something?

Another affordable way to get a valid legal will is through an online will platform like Willful. With Willful, you save hundreds of dollars compared to a lawyer, you get complimentary access to the Canada Will Registry, and you can come back and easily update your will in the future. Plus, you can do it all from the comfort of your own home. Plus, Northern Credit Union members save 20% on their Willful plan, making it even more affordable.

How to create a will with Willful

Making a will with Willful is easy, affordable, and convenient. You can complete your resolution to make one from the comfort of your own home in just 20 minutes, with an additional 20% off if you’re a Northern Credit Union member.

Here are the steps you’ll go through while making your will:

1. Choose your executor, the person who will execute the wishes outlined in your will
2. Select your beneficiaries, the people or organizations you want to gift your assets to
3. Pick a guardian to assume responsibility for any dependent children and any pets
4. List your funeral and burial wishes
5. Print your will and get it signed and witnessed
6. Store your will in a safe place

Once you have a will, it’s important to update it after a major life change like moving provinces, buying property, or adding new members to your family.

If you’ve created a will with Willful, updating it is easy. Just log in, navigate to the edit section, make your desired changes, and then print off the new version! You’ll need to sign and witness it again to make the updated will legal.