Individuals are using Wills for more than just dividing their assets between beneficiaries: ethical Wills give benefactors the opportunity to communicate their values, hopes and dreams to future generations.

Legal Wills are designed to address dividing tangible assets. As individuals – and particularly after recent high-profile estate disputes of Peter Brock, Clinton Grybas and Heath Ledger -  most of us are aware of the importance of leaving a current, valid Will to ensure our money, or possessions, are distributed according to our wishes. But what legal Wills neglect to address is the opportunity to convey our values, ideals and beliefs to loved ones.

Although not legally binding, many patriarchs and matriarchs are electing to use ethical Wills to be remembered for more than just their asset division. They are an opportunity for family leaders to preserve their legacy of values, and can be a vital part of the estate planning process. Ethical Wills can include instructions for life, morals, values, hopes, dreams and family stories to be passed on from one generation to the next.

Ethical Wills are not new. They have existed for centuries worldwide among a variety of cultures, and are usually a supplement to regular Wills. Originally verbally delivered, ethical Wills now come in many forms, including letters, DVDs or recordings. Many individuals choose to communicate their philosophies, dreams and values with their family by sharing their ethical Wills during life.

Ethical Wills can explain your decisions

Sometimes heirs don’t always understand decisions made in estate planning; and an ethical Will is an opportunity to explain why assets have been divided in a particular way, plus clarify documents or instructions. Successors have a better understanding of your wishes when faced with making decisions that involve jointly owned assets or interests. Ethical Wills can also save painful situations by providing an understanding to heirs by explaining an  apparent inconsistency or unfairness.

Business Succession Planning

Using ethical Wills is growing particularly in family structures that control significant business interests and wealth.

Dr Barry Baines, author of “Ethical Wills: Putting your Values on Paper”, says an ethical Will is more than an opportunity to address the spiritual and ethical side of a person’s estate. It can also be a powerful tool to align the values of multiple owners and generations within an enterprise.

“A big barrier to successful wealth transfer and family business transfer is lack of real communication” he says. “An ethical will can serve as a continuity tool, a link from generation to generation which clearly identifies values and life lessons as they relate to that business. A business stands more chance of surviving if families do a better job of conveying their values, as well as their love and even forgiveness throughout the process.”

Ethical Wills create a permanent record that can be passed down generations, giving future heirs a tangible and meaningful insight into the history that has come before them, and ensure your moral legacy is preserved well into the future.

Source: “Ethical Wills: how to add morals to estate planning”, Families in Business

Not leaving a will can cause even more family pain

As well as dealing with the shock of the sudden death of Clinton Grybas at only 32, his family and partner then also had to contend with a bitter feud over dividing his estate.

Grybas did not have a Will, and this, combined with ambiguity over his relationship with partner, Laurenna Toulmin, has led to his parents and Toulmin locked in a dispute over his assets.

Had Grybas left a Will, not only would his wishes have been understood and carried out, but it would have saved those closest to him much anguish.

Why you need to update your will when major changes happen

Actor Heath Ledger wrote his will in 2003, and planned for his estate to be divided between his parents and siblings. But his daughter Matilda’s birth in 2005, Ledger drew up a new Will naming Matilda as a significant beneficiary. But he neglected to sign it.

On his death, his original Will was deemed to be his legal, valid Will. Under this Will’s terms, daughter Matilda stands to receive little of his money.

Many believe that Ledger’s intentions were to provide for his daughter, but by not ensuring he had an up-to-date, valid Will, the onus will be on Matilda and her guardians to challenge it -  or rely on the executor’s good nature to interpret what his intentions were.

Tags: Estate planning, Wills