A Will is an essential component of the estate planning process. It is the most effective way to ensure that your assets will be managed and distributed according to your wishes.

If a person dies without a Will (Intestate), the government steps in and distributes the assets according to a legislated formula, which rarely represent the wishes of the individual and his or her family. The absence of a Will can also delay the distribution of your estate, resulting perhaps in financial difficulty for the beneficiaries and unnecessary administration costs. Furthermore, the guardians appointed for your children may not be the ones that you would have chosen.

In your Will, you can leave assets outright to your beneficiaries or you can control and distribute assets through a testamentary trust. Such a trust, or multiple trusts, can provide significant long-term tax advantages. It is also a useful vehicle to facilitate the management of assets for minor children or other dependents (for example, the trust can provide for funding the education of children and/or grandchildren). You might also consider such a trust if you wish to provide income for your spouse during his/or her lifetime, but maintain the capital for other beneficiaries upon your spouse's death.

As a powerful tax-planning tool, testamentary trusts can facilitate income-splitting as well. For example if you have a spouse and three children, you could actually establish four separate trusts, one for each child and one for your spouse. Each child's trust could include that child's children as potential beneficiaries. Since testamentary trusts are taxed at the same graduated tax rates as individuals, income can be spread out between the various trusts and beneficiaries to ensure that as much income as possible is taxed at the lower marginal rates.

We can provide you with the expert advice necessary to ensure that maximum benefit is achieved in Will planning.