Author Archives: formalwill.ca

What you need to know about divorce and estate planning

Divorces are obviously messy affairs: they involve hurt feelings, anger, and messy financial and legal complications. When you get divorced, that is a good time to re-evaluate your Will and estate plan. You have to consider not only splitting up your assets, but your insurance policies, Power of Attorney, Living Will, retirement and more. 

The very first thing you can do is to reassess and change your Last Will and Testament (that one is obvious). You’re most likely going to want to change up your Last Will  and change who your beneficiaries are. You may want to remove your ex-spouse as your Executor (if you have that person listed as your Executor). If you have step-parents, step-children and the like, you may also want to make the same changes to your Will. 

Divorce can change your estate plan in its entirety. The following other steps should be taken to change up your estate plan: 

  1. Change your Power of Attorney (for the same reasons you would change up your Last Will). 
  2. If you have a Trust, you may want to have it changed. You may want to consider a domestic asset trust. 
  3. Re-evaluate your insurance policies (who is going to be a beneficiary on your life insurance, for instance?) Are you going to have a new beneficiary? 
  4. Splitting up your retirement accounts (this should be obvious). It may be a complicated and tedious process to go through, but one that is necessary, however.

Divorces can be hard to go through, and the legal paperwork to wade through can also be a lot to do deal with: it can be tiring, emotional and wear you down. All of these are necessary tasks to engage in when you are divorced. Your estate plan should be changed, just like how everything else in your life will change after a divorce. You can read more by clicking on the link below: 

Divorcing? Here’s how to update your estate plan.

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Single? No Assets? Plan for your estate anyway.

It sounds tedious and confusing; estate planning can dredge up images of being buried in paperwork. Single adults who feel as though they may not have much in the way of assets *cough* millennials *cough* still have to plan for their estate. If you do not have a spouse or children, you still need to plan, even if you feel if you have little in the way of assets.  

Consider where are you at in life and what assets you DO have. You do not know how life will change and how things will work out later on down the road. When you pass away and you have debt, the debt will be paid off through your assets and your estate (if you live in Alberta).  If you are an adult who is planning to gift your valuables and your income away, you aren’t likely going to know what changes are coming down the road or when you’re going to pass away. Spending everything during your lifetime may not be realistic. Later in life, when people try to ensure something is passed down to their beneficiaries, people try to leave as much as possible. You may not want to spend all of your income and assets for short-term pleasures right away. 

There are also Power of Attorney documents and Living Wills to consider: in the event something happens to you and you wind up in a coma, these documents ensure that your money and health is taken care of. It’s best to get all three documents done. People don’t usually think of getting these documents complete until they reach their their 30’s or 40’s. It is recommended that one should create (or at least think about) starting these documents around their later 20’s. That is around the time when their careers are starting out. Find out more information by clicking on the link below: 

Estate Planning for single adults.

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The secret to KFC was written down on the back of a Will

It’s finger lickin’ good! That’s the theme of Kentucky Fried Chicken’s “eleven herbs and spices” secret. Everyone knows Kentucky Fried Chicken; it’s beloved the world over. In Japan, they actually eat KFC for Christmas. The secret recipe was supposedly leaked in 2016, and if the recipe is 100% accurate, it is a bit more bland than one would think. The KFC recipe is filled with ingredients and spices one would find in their cupboard. It is actually more simplistic than you might think (with the one exception being white pepper). Have you ever heard of white pepper? White pepper does not sound like an ingredient everyone would have in their cupboard.

Harland David Sanders is the “colonel” who invented the KFC mega franchise in 1952. The “colonel” kept his recipe a secret, until it was supposedly leaked by members of his own family in 2016. His nephew, Joe Ledington, leaked the recipe in an interview with the Chicago Tribune. The recipe wasn’t under lock and key, in some security vault; it was in a family scrapbook. Claudia Ledington (Joe’s aunt), wrote the simple recipe in simple blue ink on the back of her Last Will and Testament. The recipe is titled “11 Spices — Mix With 2 Cups White Fl.” Joe explained to the reporter: “That is the original 11 herbs and spices that were supposed to be so secretive.” He then followed it up with “It could be; I don’t know for sure.” In other words, he’s not 100% certain of the accuracy of the Last Will.

It could be the real recipe, but if it is, why would Joe reveal his uncle’s secret recipe? Read more about the leak here:  It’s Finger lickin’ good!

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Myths on Last Wills

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There are people who have misconceptions on Wills. Many people feel confused about what a Will entails and what a Will does not entail. Here is a short list on the myths and truths about Last Wills:  

  1. A will only needs to be written once.

This is a common myth, but a will should be reviewed on an annual basis. This is particularly true when it comes to major deaths, moving to a new place, new births, etc. Be sure not to start your Will the day right before you travel (that happens a lot). Wills should be updated whenever necessary.

    2. Wills only apply to wealthy people.

Everyone has something in the way of assets. A Last Will and Testament can help ensure that your wishes are honored and that your assets are distributed according to your desires. Be sure to have it properly witnessed and signed. 

   3. A Will automatically covers all assets.

A Will may only covers assets that are legally considered to be part of a person’s estate. Assets such as joint bank accounts, life insurance policies, and retirement accounts may have designated beneficiaries and may not covered by a Will.

  4. A Will is kept secret after death.

Wills are typically made public after a person’s death and are available to anyone who wants to see them. It’s not as if there is a scheming aunt behind the scenes, trying to see what information a Will has, so she can squirrel as much money away as she can. SOME information, such as the names of beneficiaries and details of bequests, may be protected under privacy laws.

It’s just important to have one done. There are many myths about Wills, but the confusion that can sometimes surround Wills shouldn’t stop you from getting it done. It’s important to consider the fact that you may also need to complete a Will, Power of Attorney and a Living Will as well. 

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