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(Wills
& Bequests)
Why make a Will?
For those who have reached the age of majority, the reasons to make
a Will are many. Consider your own, then consider these...
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To be a good steward, and take the opportunity your Will
provides to express your Christian beliefs and values in a
practical way.
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To choose people you know and trust to be your Executors, who
will carry out your wishes for your estate. Without a
Will, the courts will appoint an administrator to do the work
for you.
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To minimize your tax liability and maximize the amount which
goes to your family and your favourite charities.
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To know that your beneficiaries will not be left with
potentially expensive and exhaustive legal issues which could
arise if you do not make a Will.
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To see your accumulated assets distributed according to your
wishes, and to have any dependants looked after.
What if I don’t have a Will?
If you die "intestate" (without a Will), your estate will be divided
according to the intestacy laws of your province. Because these laws
dictate how your possessions can be distributed, it’s likely that
your estate will not be distributed the way you would prefer.
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If you die intestate, or without a Will, the courts will decide
how your estate will be divided among your family members. This
could leave out loved ones, cause delays, and create a tax bill
that’s higher than necessary.
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Depending on the size of your estate, your spouse may not be
provided for in the way you wish or expect.
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There would certainly be no provision for your church, your
friends, or your favourite charities.
Consulting a solicitor
A Will is one of the most important documents you may ever produce,
so it makes sense to seek professional advice in writing it.
The danger with home-made, Do-It-Yourself Wills is that you may
produce a Will which is either unclear, or legally invalid. In some
cases, it may cost your estate a lot of money to attempt to put it
right, and in other cases, it may be impossible.
It is usually advisable to seek expert help, especially in the
following circumstances:
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if several people could make a claim on your estate when you die
because they are dependent on you financially.
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if your permanent home is not in Canada, or you are not a
Canadian citizen.
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if you live in Canada but own property overseas
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if you own all or part of a business.
Is it expensive to use a solicitor?
The cost of producing your Will may depend on the complexity of it.
For example, the cost of producing a Will for a single person with
no immediate family and little accumulated wealth would be less than
that of a Will prepared for a married couple who have dependant
children and own significant personal property or real estate.
You can investigate the cost before deciding which solicitor to use,
and you should of course, feel free to "shop around."
In any case, you can help to save some time and money by giving some
thought to what you want to see in your Will before your visit.
Where can I find professional advice?
You could consult the solicitor that was previously used in the
purchase or sale of your house. Alternatively, friends, family, or coworkers may be able to recommend someone
to you.
Contents of your Will
Providing for your immediate family comes first, as the Scriptures
direct us. After that you may want to include friends, your church,
or a favourite charity that you have supported during your lifetime.
Traditionally, Wills are used to provide gifts to family, friends,
and charities using any or all of the following:
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A Devise is a gift of real estate deeded in a Will.
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A Bequest is a gift of personal property.
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A Legacy refers to a gift of money or similar (for example;
stocks, bonds, etc.).
You may dictate how these gifts are distributed in any of four ways:
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A Specific gift is one where a named piece of personal property
is transferred to a beneficiary.
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A Demonstrative gift is one where a specific sum of money or
quantity of property with identifiable monetary value is
transferred to a beneficiary (for example; $500 from a specific
bank account).
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A General gift is a gift of a non-specific, general asset (for
example; 10 shares of stock X).
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A Residual gift is one made from all remaining property in the
estate.
Think of making arrangements which can minimize the potential tax
burden on your estate...
When you make a donation through your Will, significant tax
credits are available in the year of your death.
Additionally, if the amount of your bequest exceeds your income
for that year, credit for the excess can be applied to previous
tax years.
As you may make changes to your Will at any time, you retain
full control of your gift, and can easily alter or add a codicil
to the Will to meet changing circumstances.
Changing your Will
You can change your Will at any time and for any reason such as:
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The birth of a child or grandchild;
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The death of a beneficiary;
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A change in personal marital status;
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Adding or deleting beneficiaries;
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Simply changing your mind about something.
It is important that you do not attempt to alter or change your Will
by writing on it after it has been signed and witnessed.
Doing so
could cost your estate a lot of time and money in proving that the
alterations were genuine and that the Will has not been tampered
with, or worse, it could render your Will invalid.
Making Minor Changes
The simplest way to change your Will is by making a Codicil.
A Codicil is for people who want to make minor amendments to an
existing Will. A Codicil must be signed, witnessed, and dated in the
same way as a full Will, and is usually kept with the Will (though
not attached).
Making Major Changes
While there is no limit to the number of Codicils that can be added
to a Will, if a number of minor Codicils accumulate over time, it
might be better to draft a new Will to avoid confusion and problems
later on.
Also, if you want to make substantial changes to an existing Will,
it is best to consult a legal professional about preparing a new
Will.
Additionally, depending on the province you live in, a change in
marital status may void your current Will.
Drawing up a Codicil
A Codicil is for people who already have a Will, but who wish to
make only minor changes to it. This can be done very simply through
your solicitor.
A Codicil must confirm all the unchanged contents of your Will, and
it must be signed and witnessed in the same way - otherwise it is
completely invalid. Your lawyer can help you draw up a Codicil at a
much lower cost than that of producing a new Will.
Sorting out the legal jargon:
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Beneficiary Any person or organization that benefits from a Will
by receiving gifts of cash or property.
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Bequest A gift of personal tangible property (not money or
similar) included in a Will.
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Codicil An addition to a Will which makes some alterations but
leaves the rest of it intact. A Codicil can be used to supplement,
clarify, or modify, an existing Will (for example, add
beneficiaries, change an Executor, name a guardian, etc.). A Codicil
is best used for straightforward alterations to the terms of an
existing Will without having to re-write it from scratch (example;
making or increasing a gift to a charity).
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Devise A gift of real estate deeded in a Will.
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Estate The total of everything owned by a person at the time of
their death.
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Residue What is left in an
estate after all specific bequests and pecuniary legacies, expense,
taxes and liabilities have been paid.
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Estate Trustee The person appointed to deal with the estate. If
there is no Estate Trustee named in a Will, the Estate Trustee will
be appointed by the courts.
Executor
(also known as the Personal Representative)
The person or persons appointed by the testator to see that the
estate is distributed according to his/her wishes. Being an executor
does not prevent someone from benefiting from the Will, and may
actually be an incentive for them to complete the administration
promptly!
Intestate An "intestate person" is someone
who dies without making a Will (or leaves an
invalid Will). Their estate is distributed
in accordance with "intestacy rules" laid
down in law.
Legacy A gift of money
or similar non-tangible property included in
a Will (example; stocks, securities, etc.).
Legator The person making the Will (see also
Testator or Testatrix).
Probate Fees A tax on the full gross value
of a person’s estate at the time of their
death. Fees vary from province to province
and except for the provinces of Alberta and
Quebec, there is no limit to this tax.
Residual Gift A gift from what is left in
the residue of the estate after all
expenses, debts, pecuniary legacies, and
specific bequests have been made.
Residue What is left in an estate after all
specific bequests and pecuniary legacies,
expense, taxes and liabilities have been
paid.
Specific Bequest The gift of a named asset
or piece of personal property (not money or
similar).
Testament Another name for a Will.
Testator/Testatrix
The person making the
Will (see also Legator).
Witness The person who watches you sign your Will and then signs it
in your presence. Laws vary from province to province, but it is a
general rule to have two witnesses to your Will for it to be valid.
These persons should not be beneficiaries of your Will or the spouse
of a beneficiary.
Some common questions
Where do I keep my Will?
Once a Will has been made, it should be kept
in a safe place along with any Codicils which have been added.
There are a number of places where you can keep your Will - at
home, with a solicitor, or at a bank. Remember to tell your
executors or someone close to you where to find it.
Who pays for
my funeral?
All funeral expenses are paid from your
estate.
What about
instructions for my funeral service or my wishes for my remains?
While it is quite common to use a Will as the
place to express such wishes, there may be some delay between
your death and the reading of your Will.
Because of this, it is
recommended that you inform close relatives and your executors
of your desires beforehand.
Consider in advance, any special arrangements for
your funeral regarding the readings, hymns, or attendants, or
whether you wish a charity to benefit from donations in lieu of
flowers.
Remember to tell your executors or close family where to
find your instructions, so they can make sure things are done
according to your desires.
Who are my executors?
They are people who you have asked to take the
responsibility for implementing your Will. The people most
commonly appointed are family members, friends, banks, or
solicitors.
You should always inform the person of your desire
to name them as executor in advance, as the job involves a good
deal of work and responsibility.
What do I own, what do I owe, and what am I owed?
The form included in this package can help you think
about this.
Who do I want to be the guardians of my children?
Guardians may or may not be your executors.
There are many other questions you will need to consider when
preparing your Will, and you’ll save time and money by giving some
thought to them before consulting a lawyer.
In addition to the contents of your Last Will and Testament, you
should also give some consideration for the present by creating a
living Will and providing for powers of Attorney.
Your lawyer can help you prepare both of these documents.
By leaving a gift to Mission Aviation Fellowship in your Will,
you’ll be helping to bring long-term practical help to the poorest
people in our world, by ensuring that aircraft and trained,
committed people are ready to meet their spiritual and physical
needs.
Donations in Wills are vital to the future of MAF. In fact, without
gifts Willed to MAF in the past, we wouldn’t be able to carry out
much of the work we do today.
Your invitation
We invite you to give a testimony of your values by leaving gift to
Mission Aviation Fellowship in your Will.
Your gift will help to secure MAF’s long-term future - enabling us
to continue to reach isolated people by "flying for life" throughout
the world.
Regardless of the size of your estate or the amount you designate to
MAF, leaving a gift to MAF in your Will is important, as it
represents your commitment and dedication to advancing the kingdom
of our Lord, and helping our most needy neighbours.
You are never under any obligation to inform us of any decision to
leave a gift to MAF in your Will. However, should you decide to do
so, we ask that you to let us know, as it would be a great
encouragement to us.
Of course, informing us of any intent to include MAF in your Will is
simply a statement of what you intend
at present. It does not bind you in any way and will be treated with
the strictest confidence.
Thank you for considering this invitation to Make a Lasting Impact
through MAF.
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