What clauses are included in the Single Will?
Watch Jordy Atin give a detailed explanation of each provision in the Single Will:
Depending on how you plan in the portal, different clauses will appear in the generated document. The following demonstrates the different clauses that may be included in the Single Will:
- Funds and Plans
- This is the section where designations of registered plans are made. It lists the different registered plans and designates the successor holder and beneficiary of the balance of the registered assets.
- Assets Passing Outside of Will
- This section is a confirmation of joint or designated assets. You may want to include this clause if there is a potential challenge to a joint or designated asset and you want to confirm it really is a true gift and not being held on a resulting trust. This clause is typically used when the client is in a second marriage or where the joint owner is not getting the residue of the estate.
- This is a standard revocation clause. We typically talk about Wills, Codicils and other Testamentary Dispositions because the definition of Wills in the SLRA includes Testamentary Dispositions. It also ensures we don't need to revoke any insurance or registered plan designations by virtue of this revocation clause.
- Definitions and Interpretations
- This section includes definitions of "my trustee", "beneficiary", "incapable beneficiary", "benefit", "unable or unwilling to act", "spouse", "children", "my issue", "issue alive at a specific date in equal shares per stirpes", "children born out of wedlock", "posthumously conceived children", "personal effects", "digital assets", and "indexing".
- Executors and Trustees
- This section will list the individuals appointed as primary and alternate estate trustees. It will also have a clause about security which is a default inclusion in the will.
- Disposition of Body
- This section will list funeral arrangements as you have inputted them in the portal.
- Payment of Debts, Expenses and Taxes
- This is a standard payment of debts clause. It includes wording that it is subject to any specific provision. If you wanted a specific individual to pay the mortgage on a property, it would be governed by that specific provision instead of this general provision.
- Marriage Agreement
- If you have indicated that there is a marriage agreement in place, this clause will populate. You will have to manually put in the name of the other party and date of agreement.
- Disposition of Personal Effects
- This section will generate a clause detailing the disposition of general personal effects, as well as any other specific personal effect assets (ex. Jewelry). If you are gifting to a class or multiple beneficiaries, you can decide if you want the disposition to be at the discretion of the trustee or if it is to be decided by a lottery system.
- Registered Education Savings Plan
- This clause appoints a successor subscriber (the spouse) and if they are not alive directs the trustee to hold it for the RESP beneficiaries (the children). It is important to remember that it is not a trust when you make this kind of designation. The successor subscriber actually owns the RESP, you can only hope they will put it into the residue of the estate once no one qualifies for the RESP any longer.
- Initial Gifts
- This section deals with cash legacies and specific asset bequests.
- Trust for Residence
- If you are doing a trust for the home or the cottage, that will appear in this section. It will detail the property details, beneficiaries, termination, who is able to use it, expense breakdown, and giftover.
- Residue of my Estate
- This clause details the residue breakdown in parts. The language of the clause uses "shares" to prevent a lapse if there is a predeceased child with no issue.
- Ultimate Distribution
- This clause details the residue breakdown in the "No Descendants" scenario. If there is still money leftover and no spouse or issue around, this clause details what should be done with it.
- Beneficiaries Under a Certain Age
- This clause is used for any beneficiary that is going to inherit that is under a certain age and has not had a specific trust set up for them. We use it typically for more remote issue (ex. grandchildren) so we do not have to set up specific trusts for giftover situations.
- Additions to Trusts
- Because there is a possibility that a beneficiary for whom there is already a trust could inherit further from another giftover somewhere in the will, this clause ensures it is added to that trust that is still existing.
- Administrative Provisions
- These are standard administrative provisions that are generated in all the wills. They cover the executors and trustees of any trust in the will. This section includes powers on, "Sale/Postpone Sale Distribution "in kind"", "Manage Estate Funds", "Deal with Specific Assets including businesses", "Obtain Assistance from Others", "Protection from Trustees", "Dealing with Special Beneficiaries/Creditors", "Income Tax Matters", and "Compensation".
- Replacement of Trustees
- This clause is included in the event that the last named trustee no longer wants to act or has died or becomes incapable. This clause allows them to appoint a replacement. If they are deceased, their executors can appoint a replacement. If these are not options, the court may appoint a replacement.
- Exclusion from Net Family Property
- This clause attempts to protect a beneficiary from their ex-spouse. If the beneficiary is married at the time of their inheritance and then splits up with their spouse, the inheritance, income and increase in value of the inheritance is protected from division under Ontario Law (with the exception if that beneficiary uses the inheritance to buy a matrimonial home).
- Guardianship of Minor Children
- This section will list the individuals appointed as primary and alternate guardians.
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