***Time for this blog? Reading…7 minutes. Activating…up to you.
In my last blog, I talked about dealing with your things. Given today’s title, you may have anticipated ideas about sorting and distributing your possessions before you die. I will address that, but not yet. Today I want to discuss a less tangible, more abstract aspect of putting your house in order.
No one’s favorite topic, I know. But if we don’t do it when we can—long before the end is in sight—we will leave a stressful mess behind.
Dealing with that mess will be much more challenging than clearing out your physical stuff. When it comes to belongings, your kids can bring in a junk removal service and have everything gone in a day so they can get your house on the market.
If you don’t have your documents in place, they won’t be able to sell the house you own. That is a legal process and you must have given them the authority to act on your behalf. Without your authorization, they will have to jump through hoops to be allowed to handle your affairs. Settling your estate will cost extra time, trouble, and money.
Documents you need in place…
How can you ensure that your survivors are able to sell your house, pay your outstanding Visa bill, and manage your investments until they legally inherit the estate? That is the role of your Will—to give authority to someone you name to wrap up your financial affairs after you’ve died. In your will, you specify how you want your estate distributed. The person who you name, known as the executor, is in charge of making it so.
And what if…
Suppose you aren’t yet dead but need your family to take over managing your financial affairs. This is a realistic possibility, given the increasing rates of Alzheimer’s and dementia these days.
How are assets managed and bills paid in a situation where you’re physically or mentally impaired? You can’t do it, but nor can your executor because the will only comes into effect after you have died. And your bank will not allow family members to march in and take over your accounts, even if they arrive with a compelling story about your inability to do it.
On one hand, that is reassuring. But this rigorous protection of your assets works against you if you haven’t prepared for someone to take over your affairs when you are alive but incapable. That is why you need to draw up a Power of Attorney while you are still mentally sound. For all of us, this means doing it sooner rather than later.
The place to start…
There is other paperwork you need, but start with your Will and Power of Attorney. If you’ve completed these documents and recently reviewed them to be sure they are still current, you get a gold star!
If you haven’t tackled your paperwork yet, here’s a good question to ask yourself…
What is stopping you?
Awareness is the first step toward getting these documents written. Never underestimate the motivating power of awareness. Once you know what’s standing in your way, you can do something about it and get on with the task at hand.
Often it is unconscious, unspoken beliefs that sabotage our best intentions. There are many ways to release or adjust unconstructive beliefs once we know what they are. This previous blog points you to several of those modalities.
Sometimes it is our assumptions that trip us up. Don’t we all know that “lawyers charge hundreds of dollars an hour”? The problem with assumptions is that we treat them as fact—and that stops us from finding out what the situation really is. So we become immobilized by incomplete information. If that’s your stumbling block, maybe this information will help…
- In a quick search of “Calgary lawyers fee for wills,” I saw that lawyers are typically charging a flat fee rather than an hourly rate. For you, this means you’ll know how much the end product will cost. There are no surprises, and you can shop around to compare fees and what you get for them. The Internet has been a game-changer in this process.
- Among the seven lawyers’ websites I looked at, flat fees for a simple will range from $400-$600. If you have complicated family relationships and/or finances, it will take more time and thus cost more. You would find that out in your initial meeting and should be given an estimate of the cost in your particular situation. You can decide then if you want to proceed or get another opinion. By the way, it is entirely your right to assess the lawyer at your first meeting and move on if you feel you can’t work with that person.
- Ideally, a couple prepares their wills together and the documents mirror each other. Fees reflect this by charging couples less than double the amount for one person. Examples from my research, with the couples fee in brackets: $400 ($500); $500 ($750); $600 ($900).
- Some lawyers offer a package deal for preparing your Will, Power of Attorney, and Personal Directive (Living Will). One example was $900 ($1200). Side note: It is not required that your Personal Directive (Living Will) be made by a lawyer. You can fill out the appropriate forms yourself and sign them in the presence of a witness. More about this another time.
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If this exploration reveals any insights you’d like to share… or questions you want to ask… please do so in the comment box below.
Please note: Laws vary between provinces, states, and countries. I’m using information from where I live to illustrate principles, but you will need to check the details in your jurisdiction. The Internet is a good resource for this.