Canadian Wills & Formal Trusts
Wills and trusts are legal instruments that allow a person to designate beneficiaries of his assets. In Canada, there are specific requirements for wills and trusts to be valid.
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Formal Trusts
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In Canada, most trusts are informal, in which a person opens a bank account or investment portfolio "in trust for" someone else. However, a formal trust must be drawn up if there are restrictions on the trust. For example, if the funds in a trust are only to be used for educational purposes, such as tuition, the specific terms should be set forth in a formal trust.
Valid Wills
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A will cannot be submitted for probate unless the testator has reached the age of majority, which varies by Canadian province. The will must be in writing and signed by the testator. Additionally, a will signing must be witness by two impartial people (not the spouse or a beneficiary), who must also sign the will.
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Amendments and Revocation
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A will can be changed if the testator signs a new will effectively revoking the old one. Additionally, small changes can be made by including a codicil to alter or add to the original. A codicil must follow the same signature and witness procedures as a will. Wills are also revoked if it is intentionally destroyed by the testator or if the testator gets married or divorced.
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