Regional Synod of Canada - Reformed Church in America

Pioneer Christian Monthly

Date - Nov/76

Contributor - Al Visser

Title - Why prepare a Will?

Topic - Finances

Recently, the following headline appeared in one of our newspapers:

"Local accident kills father . . .mother seriously injured." I read the article that followed and realized that this tragedy had occurred in the lives of a family very much like many families, and even very much like my own. This family consisted of a father age 36, mother age 34, and three children ages 3 through 13. In looking a little deeper, I discovered they lived in a ten year old single family home in a respectable neighbourhood. They probably bought their home when it was new for about $20,000 and still owed a mortgage of $10,000 on it. Today the house would probably sell for $50,000. The newpsaper story went on to say that the family while returning from a shopping trip had been involved in a car accident with a drunk driver. The father was killed instantly, the mother had suffered serious injuries causing probable brain damage, while the three children had suffered only minor injuries.

Shortly after reading this article, I met a person who knew the family involved in the accident. I learned that the father had been employed in a local factory for almost fifteen years and earned a salary of $15,000 per year. Through his employer, he had received various benefits including medical coverage for his family and life insurance which in the case of accidental death, paid $45,000. The father had also purchased a small $10.000 insurance policy several years ago. The mother had been active in church and community activities as well as being a full time mother to the three children. Now these activities will stop, and even her ability to care for the children has been taken away.

From this information, one can readily determine that the fathers estate is worth in excess of $100,000, The sad realization is that the father had not prepared a Will. What will happen to the children, and what about the money? Most of us would wonder why a person worth over $109,000 wouldn't worry about what happened to his estate should, he happen to die. This man never reailzed how much he was worth and besides, he felt he was too young to die.

Many of us have the same problems. We often feel that accidents happen to other people and Wills are for those who are "well off". Most of us don't realize that when the average person dies, their estate normally exceeds $50,000 and often is well over -$100,000.

To avoid most of the problems the above family is going through today, everyone should consider preparing a Will. Take a few minutes and write down the following information:

1. A list of all your immediate relatives including your spouse, children and grandchilclren. These -are the people that might appear as beneficiaries in your Will.

2. A list of the real estate you own including current value and related mortgages.

3. A list of your insurance policies and retirement or pension benefits you are entitled to in case of death.

4. A list of your personal property including all items over $1,000. When valuing an item, be sure to use a conservative figure. At the bottom of this list should be an item called "household furnishings, etc.". This would include all other items worth under $1,000.

5. A list of investments including stocks, bonds, mutual funds, mortgages, etc., stipulating original cost and today's market value.

6. A list of bank accounts and bank loans.

7. A list of any other assets including businesses and a reasonable market value for each.

8. A list of any church, charities or other organization which you regularly support or might want to support should you have the financial capability.

Once you have recorded the above information, you can readily calculate what the gross value of your estate is. In most cases, you will be pleasantly surprised.

The disposal of your estate is controlled by what is usually called a Will or Last Testament. A "Will" as defined in Websters dictionary is "a legal statement of a person's wishes concerning the disposal of his property after death". To understand this, we should consider what is normally included in a Will. The following items are a brief outline:

1. The name of the person making the Will.

2. The date of the Will. This is necessary as many people draw more than one Will. Normally a Will revokes al previous Wills.

3. The name of an Executor and alternate Executor of your estate. The Executor takes care to see that your Will in all its terms, is specifically carried out in every detail. You may appoint more than one Executor. An alternate is necessary in case the Executor(s) cannot serve. In many cases, your spouse would be the Executor.

4. The distribution of your assets. In the case of married people, the total estate is often left to the spouse. Alternately, an individual may want to leave specific amounts to their children and others. At this point, you should refer back to the information you prepared earlier and consider the following:

a. Which assets do I wish to leave to my spouse and/or children?

b. Should this be available immediately to them or at some time in the future?

c. I want to leave a portion of my estate to my church, a charity or some other institution.

d. Are there any other individuals to whom I would like to leave something?

e. What happens to what is left over?

These questions are all normally answered in this part of the Will.

5. An alternate plan of distribution, should any of the Beneficiaries pre-decease you.

6. The appointment of a Guardian for any children in the case of two parents both dying. It is very important to know who will take care of your children if you can't.

7. I am sure that most people have considered these points many times and at the same time haven't done anything about it. It is your responsibility to care for those who depend on you. Preparing a Will is a small but necessary part of that responsibility.

If you haven't prepared a Will, see your lawyer soon. Armed with the information you now know about your estate, you can instruct him to draw a Will to suit your needs. I am sure your family, church and many other individuals and organizations depend financially on you today. Can they depend on you tomorrow, if something happened to you today?

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