Estate assets, she explains, include cash, bank accounts, investments, equipment, machinery and land. Assets held jointly do not form part of your estate.
To save probate (court) fees, transfer gifts to children during your lifetime (inter vivos). Also make property and bank accounts joint. Name beneficiaries for RRSPs and insurance to keep those assets out of the estate.
These steps may be cost savers but can entail a degree of risk. Those risks should be weighed against the costs that might be saved. For example, this strategy can reduce flexibility - in a falling out, it can be difficult to persuade your "co-owner" to relinquish his or her newfound rights. And it often doesn't allow for the ability to establish trusts for minor children.
Even after you take these steps, a Will remains important. While the Intestate Succession Act ensures that relatives inherit your estate even if you have no Will (spouse first, then children, then parents and so on based on the degree of consanguinity), the process can become complicated and expensive - and it may not reflect your preferences. So be sure to have a Will.
You can draw your own Will simply by handwriting it. This "holograph" (yep - just like Star Wars) requires no witnesses. The holographic Will can be as simple as the landmark case where the trapped farmer scratched on his tractor fender, "All to my wife."
However, a formal Will drafted with the aid of a lawyer is better because it includes advice on estate considerations. Besides making funeral arrangements, estate planning includes naming guardians for "infant" (minor) children, beneficiaries for family heirlooms (like Aunt Agatha's amethyst ring), executors for the estate and provisions to compensate these people for their time.
Once you've made these decisions, urges den Hollander, talk to the people you've selected. Be sure they agree to serve in the roles you've chosen for them, and that they understand your wishes. Tell them where you keep your Will and your safety deposit key.
And finally, keep your Will up to date, either by Codicil (addition) or through a fresh document. Remember: marriage revokes a former Will, as does drawing a new one. And today, a two-year common law relationship gives your partner the rights of a spouse. Once you've drawn your new Will, be sure to destroy the old.