Do I really need a Will?

Following the current theme within my articles, the answer is also “it depends”. You may chose to die intestate, meaning to die without leaving behind a valid will. In that case, how your estate (the collective sum of an individual's net worth, including all property, possessions, and other assets), will be decided by current local laws (namely the Succession Act). How your assets are split depends on your situation as outlined in the act (the order of distribution includes spouses, children, and other relatives.), but this may not be your intention. In order to distribute your estate with intention, a will is necessary.

What is a will?

A will, also known as a Last Will and Testament, is a legal document that outlines your instructions for the distribution of your wealth after your passing (your only voice that speaks from the grave). Laws regarding wills in Trinidad and Tobago are covered under the Wills and Probate Act.

Here are some critical points about wills:

Contents of a Will:

• Specifies who will receive what assets.

• Determines when beneficiaries will receive their share.

• Addresses the care of any dependents (such as minor children).

Flexibility:

• You can modify your will as needed, as long as you are mentally competent.

• Each change must be signed and witnessed by two individuals.

• Consider creating a new will with a more recent date to avoid confusion and destroying copies of old wills.

Validity:

• A will remains valid even if the owner becomes mentally incapacitated later.

• To avoid challenges, consider having the owner’s doctor as one of the witnesses. (in cases where mental capacity is in question)

When and Why to Make a Will

Complex estates involving assets like private or public shares in companies, bonds, property, foreign assets like foreign property or financial products would likely benefit from establishing a will as it establishes a legal representative to administer your estate (called your executor). Having a comprehensive and up-to-date will helps avoid legal complexities and disputes among family members. It streamlines the settlement of your estate, minimizing delays and administrative paperwork.

A person's financial affairs are fluid, meaning you may own an asset today and dispose of that asset tomorrow. You may even come into possession of valuable assets like property or monies through being a beneficiary or insurance. Wills usually have a residual clause that covers the distribution of any assets not explicitly covered in the will.  

How do I leave assets without a will? 

There are a few ways persons chose to divide their assets that avoids the probate process. 

• Joint accounts with rights of survivorship:- You can have joint accounts with your heirs. When you die, the monies in that account changes ownership to the surviving party. 

• Naming beneficiaries when possible:- investment accounts like mutual funds, bank accounts and life insurance name beneficiaries. 

• Gift while you are alive:- a fool proof way of ensuring your assets go to who you want it to is to gift those assets while you are alive! Remember there may be fees attached to transferring real property (land, building). This is why some persons chose to leave property behind via a will or intestacy process- you avoid some of these transfer fees. 

The bottom line

The decision to have a will is a personal one. In my experience, wills are a very useful tool to set clear expectations amongst heirs, and fast tracks the administration process. 

Whatever your choice, I work with a variety of lawyers who specialize in wills and estate planning to ensure comprehensive wealth planning for my clients. Even if you are not a client and are interested in creating a will, I will be happy to share their contact information with you (I do not earn any referral fees). 

My last thought I will share is that too many times, we think wills are for the rich. Wills come at a reasonable cost and can save your heirs time and money in the future (usually saves more than the cost of creating one)!