Happy Holidays! I don’t know about you but I’m ready for a break and I’m looking forward to having a few weeks off to spend time with the family. The topic this month is something that is extremely important to me and an area that I believe most people neglect: Your Last Will and Testament.

 

Most of us have no idea how vital this document is to our lives and the lives of our family. I routinely see clients that either don’t have a Will or have a very basic Will that is usually out of date. A Will is so vital that next to a life insurance policy it should rank as the most important document you can create. But why?

 

There are many reasons but the most important is that a Will is a document that communicates your wishes after you’re gone. If you do not have a Will it is known as dying ‘In Testate’ and the court will decide (using a formula) where your assets will go.  So here’s the question: Do you want to run the risk of having the court decide how to split up your estate by not having a Will? Dying without a will can create heartache and stress within your family at a time when they shouldn’t have to deal with that. You owe it to your family to have this document in place. In most cases once you write a Will you only need to update it if major events occur: Marriage, Divorce, birth of a child, acquisition of an asset, business formation etc.  These events don’t happen that frequently so you won’t incur an ongoing expense to update the Will.

 

One additional aspect to your Will and one thing that you should discuss with the attorney giving you advice about your Will is an Enduring Power of Attorney (EPOA). What is it? Here is a description from WA Office of the Public Advocate:

 

 

I want you to focus on the word ‘incapable’. If you lose your capacity (mental) and you don’t have an EPOA, no one will have the legal authority to deal with your assets or make financial decisions for you. This includes signing documents on your behalf. The result could be that your family is unable to conduct your financial or business affairs. It gets even more serious. Let’s say you are involved in a bad accident and are unconscious. Without a EPOA (that gives the Donee medical authority) you are at the mercy of the medical system. However, if you have given someone these powers then they can provide instructions as to your wishes.

 

I hope this has given you something to think about when it comes to your Will and other things that go along with it. You may feel great today, think you’re invincible or whatever. But what I have found is that you don’t realize you need something until it’s too late.

 

My last word on this is to seek out a lawyer who specializes in this area. The corner solicitor WILL NOT cut it with a document this important. Costs may range from $500 to $2500 depending on your circumstances. However, put this cost in context: It may cost your family hundreds of thousands of dollars if you don’t have these documents. As an adviser I encourage all my clients to get these documents done as a matter of urgency.

 

So over the holidays or perhaps as a New Year resolution please, make an effort to get a Will and EPOA done if you don’t have one or do a quick review of the one you have.