It is enough trouble to prepare one Will, right? Why would I want to prepare two?
To save money! That is why.
After you die, in most cases your Estate Trustees will be required to have your Will “probated”. This is an application to the court to have your Will certified by the Court as being your last Will and Testament. Third parties such as financial institutions can then rely on that Will. When you apply to the Court for probate, you have to pay a “probate fee” of approximately 1.5% of the value of your estate.
However, some of the property that you own when you die can be transferred without the Will being probated. This includes real estate, including your house, in certain circumstance. In Chatham for example, if you have owned your house prior to 2005 your estate would likely be able to transfer your house without the Will being probated. This would also apply if you own shares is a private corporation or are holding money in a joint bank account with one of your children. By creating a Secondary Will to deal with these assets, you can avoid paying probate fees on the value of those assets.
If your house is now worth $300,000, you can save $4,000 in probate fees by using this strategy.
This is the time to update your Will. Call me at 519-351-7721 and I can advise you as to whether or not this strategy will work for you.