Ethical Will? What’s that?

An ethical Will. It sounds something green, right? Something eco-friendly? A Will that you would write up to leave behind for environmental charities or something? A Last Will and Testament is a document that directs how property shall be distributed upon a deceased person’s death. But what are ethical Wills? 

An ethical Will, also known as a legacy letter or values statement, is a type of document that allows individuals to share their values, beliefs, and life lessons with their loved ones.

These types of Wills can be written at any time and do not have to be created as part of an estate plan. They can be as long or short as the individual desires and can cover a wide range of topics, including family history, personal values, goals, and achievements, as well as any messages or advice the individual wishes to share.

These documents can be a powerful way for individuals to reflect on their lives and share their insights and experiences with their loved ones. They can also serve as a valuable source of inspiration and guidance for future generations. These are personal documents that you can included alongside your Last Will. 

Here are five ways on how to write ethical Wills: 

  1. Are you communicating to your loved ones through either video or written format?
  2. What do you want to include in your document? What values, messages do you want to pass down to your loved ones?
  3. Have an outline as to what you want to include in  your letter/document before starting.
  4. Try starting this around the same time you do your Last Will and Testament.     

Find more about ethical Wills, here.

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Millennials and Gen Z are pretty charitable

Millennials and Gen Z are often stereotyped as freeloading, basement-dwelling, lazy, spoiled children. Millennials and GenZ are two generations that have suffered several years of economic setbacks, all of which has caused delays in major life milestones. Both generations have to struggle more than their parents will have to in order to pay back their student loans, get married, have children, etc. Instead, they are the ones often stereotyped as children; two generations of supposed children who live at home and refuse to grow up. At the very least, Millennials Millennials (born roughly around 1982) and GenZ (born roughly around 1996) are more empathetic and  charitable than previous generations. The study (conducted by RBC) made some pretty surprising findings, including the following: 

– 53% of Canadians between the ages of 18 to 14, and 25% of Canadians between the ages of 35 to 54 are leaving behind something for charity in their Wills (for those in those age ranges who actually have a Last Will, that is). Also, yes, the study included people in the age range of 54 years old, despite the fact that oldest Millennials are approaching the age of 40. This was still in stark contrast to people aged 55 and older, who, as the study pointed out, were less charitable in their Wills than their younger counterparts. 

– Canadians are still shrugging off the idea of getting a Will done. The study found that a whopping 52% of Canadians don’t have a Last Will and Testament. This is perhaps likely due to the fact that many younger Canadians feel that they don’t have enough assets to leave behind. The study did not provide a number as to how many Canadians (overall) participated in the study. It’s no secret that Millennials and GenZ are struggling with their financial outlook, but they do what they can to help their fellow human beings. 

Millennials and GenZ are pretty charitable.

 

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NFTs and Estate Planning

An NFT, or non-fungible tokens, is a type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content. NFTs are stored on a blockchain, which is a decentralized, digital ledger that records transactions across a network of computers.

NFTs are unique in that they cannot be exchanged for other assets in a one-to-one manner like traditional currencies or commodities. They are often used to represent items such as artwork, collectibles, and virtual real estate.

Advantages of NFTs

NFTs (non-fungible tokens) are a specific type of asset held on the blockchain. Many NFTs are pieces of digital art, although there are other uses, such as real estate deeds and certificates of authenticity for real-world assets. The advantages to holding an NFT include the following:

  • The blockchain makes it nearly impossible for assets to be stolen or forged.
  • Ownership is easily verifiable, depending on which blockchain it’s held on.
  • Legitimate transfer of NFTs is a simple, clear-cut process.
  • Assets are non-fungible, meaning that they’re unique and are well-suited to represent individual items.

NFTs are often used for pieces of art. Just as a painting by Claude Monet has value, so too do artworks represented by NFTs. For example, a CryptoPunk NFT created by Larva Labs could be worth multiple millions of dollars. As with physical art, these NFTs can offer a way to transfer wealth from one generation to another.

Estate Planning Challenges With NFTs

NFTs have the same challenges as other assets that are stored on a blockchain. Heirs must be aware of the existence of the NFTs, know which blockchain the NFT is held on, and be able to access the NFT as an owner. None of these factors happen by chance. Preparation by the asset holder prior to their death is vital to ensure the orderly transfer of assets to heirs.

Estate planning, especially by those who hold sizeable assets, is vitally important. However, the ownership of NFTs or other blockchain assets makes consulting a qualified professional of utmost importance. Without planning, these assets could easily be lost forever.

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Blockchain Assets and Estate Planning

Blockchain technology is a shared, decentralized ledger system that records certain transactions and assets. It’s typically used to store information about cryptocurrency, like Bitcoin. It consists of virtual “blocks”, which contain information about who owns a certain amount of crypto. These blocks are connected by hashes (the hash at the end of one block connects with the hash at the beginning of the next block). In this way, they form a “chain” of information that cannot be easily removed or altered.

As more and more people acquire assets that are represented using blockchain, estate planning has had to evolve to accommodate both the assets and the technology. As with any new technology, the laws regarding blockchain are lagging behind its use. That means that estate planning is especially important in cases where a substantial amount is held on a blockchain.

Estate Planning Difficulties With Blockchain

Having assets raises specific problems in regards to estate planning. Unlike other assets, which can be easily discovered and are often accessible with a death certificate, no such safeguards exist on the blockchain. Some other issues that complicate estate planning include:

  • Heirs are unaware that assets exist (that is, they do not even know to look for them).
  • Heirs know that the assets exist, but do not know where they’re held (are they on an exchange? In a wallet?)
  • Heirs know the above information, but do not know the appropriate passcodes to access them (or do not know where the passcodes are securely stored).

Estate planning is vital for anyone who holds sizeable assets that they want to pass on to their heirs. However, in the case of blockchain assets, it’s of paramount importance that thorough estate planning, with an advisor knowledgeable about blockchain, be performed as soon as possible in order to ensure the transferability of wealth.

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