What is a Will and who are the major players?
Your Will is like an instruction book that tells who you want to give your belongings to and what you would like each person to receive. Your executor follows your instruction book and gives out your belongings. The persons who receive your belongings as gifts through your Will are called your beneficiaries.
Your will can appoints your executor, the legal guardian of your minor children, and shares your wishes on where and how you are laid to rest.
Guardian of Minor children & Testamentary Trusts
The thought of leaving your young children to grow up without you can bring more tears than any other area of Estate Planning. Appointing a legal guardian in your Will removes possible future conflict which is both emotionally and financially draining. The legal guardian becomes responsible for the daily and long-term care of children under 18 years if both parents die. Your Will can create one or more testamentary trusts for your children which gives the executor and guardian access to finances for your children and their future needs. It is your way of protecting them and their future.
Gifts
You can only gift what you own when you die. This means that if you have money in joint bank accounts, property as joint tenants or assets in trusts such as money, shares, businesses or real estate, these can’t be gifted in your Will because you won’t own them when you die. If your Will gifts your car, shares, jewellery, watch or house to a person and you then sell that item before you die, then the gift fails because you won’t own it when you die.
Executor
Your executor is the person that, when you die, gathers up your assets and hands out your gifts to your 'beneficiaries'. You can appoint more than one executor and often, that is a good idea. Your executor can be a beneficiary, family member, friend, professional adviser or licensed trustee. A good choice is a person with honesty and integrity that you can rely on and who can understand and carry out the things that need to be done.