Scott Tywoniuk | CFO and Director of Finance , ARTA

This article is not intended to offer any kind of legal , accounting , or tax advice . Contact your lawyer , accountant , or tax advisor before acting on your specific situation . This article ’ s sole purpose is to make ARTA members aware that potential legal and tax issues can arise as a result of not having a will .

What Exactly Is A Will ? A will is simply a legal document that outlines your wishes on how your property is to be distributed after your death . A will authorizes your chosen executor — now called a

‘ personal representative ’ in Alberta — to pay any outstanding debts , hold monies in trust for minor beneficiaries , and , among other things , carry out burial instructions . Drafting a will that will hold up in court and minimize any potential legal challenges generally involves a lawyer . It is prudent to seek out a lawyer who specializes in wills , estates , and trusts . Depending on the size and complexity of your estate , accounting or tax specialists may also be required .

In creating a will , you need to specify a person or persons , your personal representative , who will be in charge of overseeing your estate . The person in charge of executing your will is going to be held responsible for making sure that any debts and creditors are paid in full prior to any remaining money or property being distributed according to your wishes . Tax planning opportunities should be considered and strategies implemented at the time your will is drafted to reduce or even eliminate the overall tax burden to your estate . Ultimately , a will allows you to specify how property belonging to you and your estate is to be settled and to whom specific property is to be distributed .

As circumstances change , you need to update your will . What was initially intended in the will might no longer be enforceable at the time of your death — especially in cases where your personal situation has changed dramatically such as through divorce or increased debt or where specific property that had been included in the will has been sold or disposed of prior to death .

It is also important to note that a will is not the same as a power of attorney or a personal care directive . While these items are equally important , they are completely different and relate to your financial affairs or your personal care prior to death when you are no longer able to make reasonable decisions .

What Makes Up the Estate ? Your estate is made up of any property that you owned while you were alive . This property might include real estate , bank accounts , cash , computers , jewelry , and even RRSPs and life insurance in cases where your estate is the named beneficiary under the contract .

An estate cannot be completely settled until all liabilities , debts , and taxes are paid , which generally includes funeral expenses , taxes on final tax returns , and any other outstanding debts . After any gifts have been made , property distributed , and taxes and liabilities paid , what is left over is generally referred to as the residue of the estate .

No Will ! Now What ? When someone is said to have died ‘ intestate ,’ it means that they ’ ve died without having a will — or without having a valid legal will . When someone dies intestate , a number of government regulations

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