Did you know that your Will should be reviewed and updated annually or with any significant financial or familial changes? Here are the most common reasons to update your Will in 2022:

• You have children: If you recently welcomed children into your family (or plan to in 2022), you should update your Will. Including them in your Will ensures they are cared for in the event of your incapacitation or death. You can name guardians for your children and set aside an inheritance, so they are financially supported when you are unable to.
• You become a grandparent: Many grandparents include their grandchildren in their Will. If your children had children this year, consider leaving them some money to help them buy their first home or pay for schooling.
• When there is a death in the family: Your Will likely names many people, including executors and beneficiaries. If any of these people have passed away since you last updated your Will, it’s time to update your Will. It is also a good idea to name alternates for executors and beneficiaries. For example, if your first choice passes away or cannot bear the responsibility bestowed upon them, the responsibility automatically passes to the next in line.
• When your marital status changes: When you marry, separate, or divorce, your Will should be updated to reflect this. If this includes legal name changes, your Will should also show these changes. If a partner is no longer in your life, you may also want to remove them from your Will as soon as possible. Your Will includes a list of assets you shared as a couple, so in a divorce, any asset changes should be reflected in the new document.
• If you buy or sell real estate: If you are planning to buy or sell your home or real estate properties in 2022, be sure to update your Will when that process is finalized.
• If your financial situation changes: Check your Will annually for any changes in significant debts, acquired wealth or property, or any businesses you operate or have a stake in. Another reason to update your will is if you’ve received an inheritance or more considerable sums of money.

Also, do an annual review of your executor status. Your executor is the person who is responsible for executing your wishes upon your passing. They will deal with your estate and distribute assets as you’ve outlined in your Will. Sometimes you may discover a need to change your beneficiary. This often happens because someone passes away, is no longer able/capable of executing these responsibilities, they move, you’ve had a falling out, or you find someone else better suited to carrying out your wishes.

Do an annual review of your Will and contract your Notary to discuss any potential changes if needed. They can advise if you need to draw up a new Will or make an amendment (known in legal terms as a Codicil).

Personal Healthcare Planning (Representation Agreement)

We’re responsible for making our own healthcare decisions for most of our lives. However, if we become unable to do so, we need to assign someone (known as your “Representative”) to handle our healthcare decisions for us. The new year is a good time to ensure your Representation Agreement is up-to-date or to create one if you don’t have a current agreement in place.

This is a document a notary can write for you, and it should be done while you are mentally capable of doing so (aka before you become incapacitated). A Representation Agreement allows you to assign this person to make healthcare decisions if you are deemed unable to do them yourself. If you include them in your agreement, they can also manage legal and routine financial affairs.

I suggest checking in with your representative annually to ensure they are still willing and able to take this role if you become incapacitated.

Assigning a Power of Attorney

In addition to your Will (which stipulates what will happen upon your death), you sometimes need assistance with legal matters during life. For support to deal with just your financial and legal obligations when you are unable to do so, ask your notary to prepare a Power of Attorney (POA) document.

This document names someone who will manage your financial affairs (known as an “attorney”) should you become mentally incapacitated or otherwise unable to do so. For example, you may ask a family member or parent to handle cheque deposits for you while you are out of the country. You can also ask someone to pay your bills while you’re in a lengthy hospital stay. You can also use a power of attorney to represent you in a real estate transaction.

Their powers can be limited or all-encompassing depending on your wishes, which will be outlined in your POA agreement. It’s helpful to write up an Enduring/Continuing Power of Attorney now with stipulations that it takes effect upon your incapacitation.