Writing your Will isn’t about you…

We occasionally hear people explain that they haven’t prepared a Will because they don’t really care what happens after they have died – they’ll be dead. This attitude always dismays me a little because writing a Will isn’t about you – your Will is for your loved ones. The excuse is often followed up with “I don’t need a Will, it’s obvious what will happen to my things”. A recent news article highlighted why these approaches are so disrespectful to one’s family.

In Canada, you can claim a tax free spousal rollover from retirement savings, as long as it is all completed within a year. A 54 year old widower lost his wife to cancer, and was the Executor of the estate. According to the rules, he has to submit the paperwork with the bank; including the death certificate, Will and probably probate documents. In this case, the bank lost everything and he was supposed to follow up. But guess what; he has 3 children from 5 years old to 16 and he had just lost his wife. In his words “I was overwhelmed with worry, and the priorities were always the kids. I was reading up on what happens with kids after they lose their mom….Oh, God. There were too many emotions and too many other things happening with the kids.” In this unfortunate case, he simply lost track and was expected to pay tax on the $80,000 savings (the bank has since stepped in and offered to pay).

This expression of being overwhelmed is very common for loved ones when a family member passes away. Throughout these emotionally desperate times there is a funeral to arrange, banking, taxation, care for the family, the list is endless. Many people have a hard time filing their taxes at the best of times, so imagine trying to do it shortly after your partner has passed away.

There are two key points to understand. Firstly, taking care of the bureaucracy is usually much easier with a Will in place. Furthermore, the Will  allows you to choose an Executor for your estate, and given the emotional toll on your spouse, it may make sense to appoint another family member or trusted friend to take care of the paperwork.

I find it odd that people care so much for their loved ones while they are alive, but leave them with a legacy of problems by dying without a Will. It only takes about 20 minutes to write a Will at legalwills.ca, legalwills.co.uk and uslegalwills.com and costs less than dinner and a movie.

Writing a Will isn’t for your benefit, it is for your loved ones.

Doing something great with your Last Will and Testament

There have been some wonderful examples recently of people using their Last Will and Testament to make lasting change in the World. The first one I saw was “Town is left £2m legacy by terminally ill banker to help keep it ‘beautiful’. According to the article “When banker Keith Owen was diagnosed with cancer and given only eight weeks to live, he started to think of ways to leave his mark. In the end he said it with flowers – one million of them to be precise – leaving them to the seaside town he had fallen in love with. Shortly before his death, Mr Owen, 69, a Canadian citizen, took the astonishingly generous decision to change his will and leave his £2.3million fortune to Sidmouth in Devon.” He now wants residents of the town to embark on a project to plant 1 million bulbs.

Then there was the story of an elderly lady who left an alarm clock to a hospital, but in it, she had stuffed $10k in cash and a $7k gold bar.

In Wales, Bob and Flora Livsey left £550,000 to go towards services at Glan Clwyd Hospital, Bodelwyddan. It will help fund a catheter laboratory which is due to open next year.

And then, a couple of weeks ago the story of the Toronto Woman, who left her life savings to police dogs and horses. This story in particular describes something of the thought processes behind charitable bequests;

“She’d earlier intended to leave her money to an animal sanctuary, but changed her mind after reading an unfavourable story about it in the newspaper. She then decided to give it to the Toronto Zoo. But again changed her mind after reading a story about the elephants leaving the zoo.”

The article also explains the lack of constraints imposed by the legacy “she wasn’t specific about how the money was to be used — just that it was to benefit the care of the 27 police horses and 32 police dogs. Police have been looking at several options, such as new saddle blankets for the horses. “It’s things like that which really fit into the spirit of what she wanted, I feel this is a real responsibility she’s entrusted me to look after … these are her life savings, so it certainly makes us feel even more concerned that it goes to what she wanted.’”

These few examples demonstrate how much positive difference can be made when preparing one’s Will. For many people, money is tight, and finding spare funds for charitable donations throughout the year can be challenging. But including a legacy within a Will is a painless way to show your appreciation for an organization that has touched your life.

You can make a Will in about 20 minutes at www.legalwills.ca, www.legalwills.co.uk and USLegalWills.com, and within that document, it is easy to set up a charitable bequest either as a fixed amount, or as a percentage or your estate.

The high cost of law

My situation is simple, but I know I need a Will. I just phoned a lawyer and they said it would cost $900. I’m a senior, I can’t afford that

We received this call into our customer service group yesterday and it got me thinking about the true cost of the law. Why would a lawyer feel that an appropriate charge for a Will in this situation would be $900? after all, they will almost certainly put some basic information into a software package and generate a simple Will for an individual. They might even try and persuade the senior to name the law firm as the Executor of the Will.

What is a person supposed to do if they can’t afford $900?

Every jurisdiction has seen cuts in affordable law. In Canada the The Right Honourable Beverley McLachlin, P.C., Chief Justice of Canada has been a tireless campaigner of affordable law, claiming that the legal system has failed the middle classes by over-charging for simple services. We have recently seen protests in the UK over the plans to cut £220M from legal aid. The protests were made up primarily of our most vulnerable in society. In the US Jim Silkenat, who has just been elected president of the American Bar Association (ABA), warned that there is an enormous unmet legal need among those who cannot afford it, even though there are well over 1 Million lawyers in the US !! Unfortunately, no lawyer in the US is required to offer affordable or pro-bono work.

So the top lawyers in the countries serviced by LegalWills all agree that their legal system is broken. And I would say that trying to charge $900 to write a Will for a senior is symptomatic not only of a broken legal system, but also of a sense of entitlement felt by many people serving in the legal profession. That’s how we end up with situations like this one where “A solicitor has been jailed for stealing more than £200,000 from clients including one who had received compensation for brain damage…..and spent money on luxury cars and cosmetic surgery for his partner.”

This is why so many people are turning to services like those offered by LegalWills.ca, LegalWills.co.uk and USLegalWills.com. For $34.95 in the US and Canada and £24.95 in the UK, you can create your Will in about 20 minutes; using the same software that will probably be used by the lawyers charging hundreds. But with the added advantages of unlimited updates, convenience, and the chance to learn a little bit about the process while you are creating your Will, so you will really understand the contents.

Everybody needs a Will, and it should never be made unaffordable. That’s just not fair.

Intangible assets and your Last Will and Testament

There is a great deal of discussion on the internet about digital assets and how they should be included in one’s Will. We have discussed it in previous blog articles and included a range of examples to demonstrate how wide-reaching the concept really is. There are of course online accounts that need to be closed down; Twitter, LinkedIn, Pinterest, but then there are the accounts that may have some sentimental value; Flickr, Instagram, Facebook. Equally importantly though are the accounts that have serious financial value; PayPal, Blogger, GoDaddy, PartyPoker. Beyond that are the  digital assets that should have some material value; iTunes, Amazon collections, Google Play.

It is a really complicated business because the straightforward approach to these “assets” is to simply store one’s User ID and Password in a safe place available to the Executor of one’s Will. But there still needs to be a beneficiary of the asset. If I have a prestige domain name registered in my name, then it is a simple task for the Executor to log into my GoDaddy account and then transfer the domain name to a beneficiary, but I need to make it known who the beneficiary should be. And for the purposes of tax reporting, the Executor needs to know the value of that domain name.

It has been well reported that iTunes do not allow your purchases to be passed on to a beneficiary. The actor Bruce Willis was prepared to take Apple to court over his right to bequeath his music collection. PayPal on the other hand, does have a clear (albeit convoluted) policy which includes faxing in a death certificate, Will, diver’s license etc.

 

But there are other material assets that are not regarded as “digital,” and the confusing status of these was highlighted by a great article from a couple of weeks back. What about airmiles, frequent flyer points, and other loyalty rewards? It turns out that five of 12 U.S. airlines — Delta, Hawaiian, JetBlue, Southwest and Spirit — do not allow miles or points to be transferred to beneficiaries. Four of 15 hotel companies surveyed — Choice, Omni, Red Roof and Shilo — don’t allow points to transfer. But most simply don’t have a policy. Virgin America, for example, doesn’t have “a formal published policy,” spokeswoman Abby Lunardini says, but transfers a decedent’s reward points to a beneficiary or family member on “a case-by-case basis.” Marriott says a decedent’s points can be transferred only to a spouse or domestic partner, while Hyatt says points can only be transferred to a person with the “same residential mailing address” as the decedent……what?!?

I don’t think it is nitpicking though, these assets can genuinely be worth tens of thousands of dollars.

For now we would recommend making sure that your passwords and User ID’s are kept somewhere safe, and somewhere that is accessible to your Executor. You should consider using a tool like MyLifeLocker to organize and describe your assets. And you should be comfortable listing specific accounts to go to specific beneficiaries in your Will. With a service like LegalWills.ca, USLegalWills.com and LegalWills.co.uk this is a very simple process.