Most people only need one will. For those who are not owners of businesses, this is not an important discussion. BUT for anyone that has an incorporated business this is something to pay attention to.

Let’s say that my clients Joe and Jane Above-Average have been very successful. Assuming an early death of Joe, Jane now has business assets worth say $10 million. In addition, Jane, who is under 65, has a nice house and some investments that amount to another $5,000,000. Under a single will Jane’s estate would be worth $15 million. Probate fees that are paid to the government would be about $210,000. By simply doing the paperwork slightly differently, we can eliminate $140,000 of this amount through a dual will. Though it is important to note that Jane would now need two executors, one for each will. With $140,000 saved, Jane leaves more money to her beneficiaries.

At KSW Lawyers, we believe that this strategy is well worth looking into. Although, the legal work on this has some detail to it and is a bit more expensive, it can be achieved more efficiently and cost effectively if done at the same time as the 'main' will.

From age 65 onwards, Jane should review estate planning more frequently and pay close attention to how to reduce probate fees through planning. In fact, she may be able to eliminate ALL probate costs by establishing an alter ego trust to hold all of assets once she turn 65. By doing so, Jane entirely eliminates probate fees.  This is a fair bit more expensive than a dual will approach and does have some ongoing costs for income tax filing (there are no extra taxes, just a paper filing) so this may not be appropriate for everyone.

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