Consider what would happen if you died without a will (“intestate”). Initially, your estate assets will be frozen until the courts appoint an administrator, which could cause financial hardship for your family.
Eventually the estate will be distributed according to provincial intestacy laws. These laws vary by province, but typically provide a set dollar amount to a surviving spouse, with the balance divided equally among the spouse and each child. This is in the situation of a married spouse and biological or legally adopted children. A common law spouse or step-children may not be recognized under intestacy laws. If you have no surviving spouse or children, the assets would go to your next-of-kin in the order provided for by the legislation.
The administrator would have very little discretion in distributing your assets. Many opportunities to reduce tax – both before and after death – would be reduced or eliminated without a will and related estate planning.
In the case of minor children or dependants, your preference, if any, concerning their guardian may not be recognized. Payments to minor children would be held in trust by the courts, but only until they reached the age of majority. At this point, they would have a legal right to the money to spend as they wish – a thought many parents find disconcerting.
It is easy to see that without a will, your family and next of kin could be subject to delays, additional expenses, angst and even potential conflict among themselves at an already stressful time.
I would be happy to meet with you to prepare a will and powers of attorney making life simpler and less costly for those you leave behind.
If you do not have a will, or your will and powers of attorney need to be reviewed and updated, I invite you to give our office a call.