British Columbian

I am about to make a will, i am thinking of using a Home Will Kit, i would like to hear any comments from members who have used these Will kits. just basic things like Best one to use, cost, ease of use etc etc. Thanks in advance.

JonboyE

OK, I'll add my 2d's worth.

I believe that notmaking a will is an act of cruelty to your family. It is going to be hard enough for your family to cope with life without you, there is no need to add the stress of trying to resolve your affairs, not knowing for sure what you really wanted. IF you have simple affairs, then a home will kit is much better than nothing. If your wishes are something like everything to my spouse, and if they predecease me then everything to the kids equally, a home will kit will probably be sufficient. Make sure your home, bank accounts and investments are in joint names. Make your spouse the beneficiary of your RRSPs and the successor holder of your TFSAs.

For anything other than the most simple estate go to a lawyer or notary to be sure that your will is effective in achieving what you really want. This is especially important if you have minor kids, or a blended family. As you may know, in BC anyone that feels they have not been adequately provided for can challenge your will. This can tie up your estate for years. A lawyer/notary will be able to help you ensure this does not happen.

It may cost $1,000, but your family will thank you and think it is the best $1,000 you ever spent.

BristolUK

Just on that point, if one names beneficiaries of a TFSA, is it actually then necessary to detail the same thing in a will?

One could change one's mind, of course, and reflect that change in the will but amending the beneficiary designation would do the same.

JonboyE

If you have a surviving spouse the aim is to avoid having the RRSPs and TFSAs as part of your estate. If they are, the amounts are potentially subject to tax and probate fees. Using a named beneficiary/successor holder, the funds in these accounts never become part of your estate. As such, there is no need to specifically mention them in your will.

TFSAs are easiest because there are no income tax implications, but if you name your spouse as the successor holder then the TFSA is transferred to them, regardless of their available contribution room.

The amount in your RRSPs becomes taxable income in the year of death, so up to half might end up as tax to the government. If you name your spouse as the beneficiary the whole amount is transferred to their RRSP on a tax-deferred basis. Again, regardless of their contribution room.

BristolUK

Thanks, I was mildly curious about that after doing the TFSA beneficiary designation forms. Stepkids in my case.

JonboyE

Unfortunately, the successor holder designation only applies to a spouse/common-law partner. If the stepkids are your beneficiaries the funds in the TFSA will be added to your estate.

BristolUK

Ah, okay, thanks.