BY LANA SANICHAR

Typically, individuals decide to create a will because they own various assets that they would like to leave to particular designees. When my husband and I were revamping our will, the most difficult decisions came when we were deciding who would receive which asset, as well as when we were contemplating if there were ways to reduce the taxes owed upon our death.

I decided to reach out to Harry Houtman, a certified financial planner, volunteer and president of Linkcharity.ca, for his thoughts on wills and the ways in which possessions can change hands.

“In a will, you can give anything that you own to anyone you wish,” he says. “It’s an opportunity and a privilege. Having a will can alleviate quarrels, legal disputes and even expensive court cases.”

Here are his best tips on the distribution of assets:

• Getting married instantly nullifies all previous wills unless you have made wills “in contemplation of marriage.” Those will survive the ceremony intact. If you are contemplating marriage for a second, third or even fourth time, you should discuss having a marriage agreement. In it, which assets belong to whom should be spelled out; otherwise, various laws can overrule your wills.
• If you are making contributions to a pension plan or a life insurance policy, you may name beneficiaries on such plans, which typically overrule a will. Or, if you are successful and have set up a private company, you can write a second, parallel will to avoid probating those shares.
• If you and your spouse have joint ownership of anything—for example, property as joint tenants—and one of you dies, the survivor automatically owns the asset.
• For most people, the older they become, the more net worth they are likely to have. Consider making charitable gifts in your will, or by direct beneficiary on a Registered Retirement Income Fund. Provincial and federal governments give back their tax bite for charitable gifts, worth at least 40%.

Planning a will is difficult. But thoughtful and prudent planning will help ensure that your hard work over the years will be of benefit to your loved ones once you have passed on.