Introduction
In life, you never know how things are going to play out. Thinking about what happens after you’re gone isn’t easy either, but planning for the future is one of the most responsible steps you can take for your loved ones. Let’s break down what wills and estates are and why having a will is essential.
1. What is a Will?
A will is a legal document that outlines how you want your assets such as money, property, and personal belongings to be distributed after you pass away. It can also specify guardianship arrangements for your minor children. Simply put, a will ensures that your wishes are carried out and prevents unnecessary disputes.
2. What is an Estate?
Your estate is everything you own at the time of your death. This includes real estate, bank accounts, investments, and personal items. Managing your estate involves paying off debts, distributing assets, and handling any taxes owed. This process is called estate administration.
3. Why is a Will Important?
Without a will, Ontario law decides how your assets are distributed, which may not align with your wishes. This can lead to delays, added costs, and stress for your loved ones. A will ensures:
- Your assets go to the people or organizations you choose.
- Your children are cared for by a guardian of your choice.
- The estate administration process is smoother and less costly.
4. What Happens Without a Will in Ontario?
If you die without a will (intestate), Ontario law will dictate how your estate is distributed. For example:
- If you have a spouse but no children, your spouse will inherit everything.
- If you have a spouse and children, your spouse receives the first $200,000 of your estate, and the remainder is divided between your spouse and children.
- If you have no immediate family, your estate could go to distant relatives or even the government.
These default rules might not reflect your wishes, which is why creating a will is so important.
5. How to Create a Will in Ontario
Creating a will doesn’t have to be overwhelming. Here are the steps:
- Assess Your Assets: Make a list of everything you own, including property, bank accounts, investments, and personal items.
- Choose Your Beneficiaries: Decide who will inherit your assets and in what proportions.
- Appoint an Executor: Select someone you trust to manage your estate.
- Consult a Lawyer: A lawyer can draft a legally sound will tailored to your unique situation.
- Keep Your Will Updated: Life changes, such as marriage, divorce, or the birth of a child, may require updates to your will.
6. The Role of Estate Planning
Estate planning goes beyond just having a will. It includes:
- Powers of Attorney: Legal documents that appoint someone to make financial or medical decisions for you if you become incapacitated.
- Tax Planning: Strategies to minimize estate taxes and preserve more of your wealth for your beneficiaries.
- Trusts: Legal arrangements to manage assets for beneficiaries, such as minor children or individuals with special needs.
7. How to Get Started
Creating a will doesn’t have to be complicated. A lawyer can help you draft a clear and legally sound document tailored to your unique situation. It’s also important to update your will as your life circumstances change, such as after marriage, the birth of a child, or acquiring significant assets (every three to five years on average).
Planning your estate is a gift of peace of mind for you and your family. If you’re ready to take this important step, contact us today at (647)-507-3008 or send an email to derek@anglawpc.com to set up a free, confidential consultation to get started.
Derek Ang at Ang Law Professional Corporation is experienced with drafting wills, property disputes and the execution of wills and estates. He has given expert advice while personalizing wills to ensure his client’s wishes and needs are honoured.