While many Canadians have a Will, most Canadians still don’t have one. According to a LawPro survey, more than half of Canadian adults (56 percent) do not have a signed Will.
Common Reasons
Many Canadians believe they are too young to make a Will, when yet having financial responsibility is reason enough to make a Will. Some people believe that their partner will get everything anyways, but this is not necessarily the case.
Some people believe that a Will is unnecessary. They may see a Will as expensive, needing to be updated later, or that it is needed only by the wealthy. Sometimes individuals believe that their assets will automatically fall to the named beneficiaries on their investments or savings, when yet they may not have plan beneficiaries named (or have current beneficiaries). Or, they may have some account types that do not offer plan beneficiaries (e.g., non-registered investment accounts, business accounts).
Resulting Problems in Failing to Make a Will
It’s important to know that not all assets (e.g., non-registered accounts, real property) can have beneficiaries named at the source. Further, many assets, including those in single name, may be subject to probate fees, which is an added expense. These fees could be minimized by conducting an estate plan that includes a Will (or even a second Will for assets that do not have to be probated).
Without a Will, your spouse could have to share your wealth with your children upon your death. This sounds fair in principal if you die financially secure in old age but it may not otherwise work out well. If your spouse has insufficient funds and assets in her or her own name when you die, he or she may be unable to keep the family home. Meanwhile, funds for the children from the estate could be held in court until they reach age of majority.
If you die intestate (without a Will), your children are entitled to a share of the inheritance that they can access upon becoming age of majority, whether they need it or can handle it at that time or not. Having access to an inheritance in early adulthood could lead to a waste of hard earned money. If you set out amounts or percentages of your estate to be distributed to your children at certain ages in a Will instead, you could be more comfortable in knowing that your children receive the funds when they are more mature and therefore more likely to be wiser in their spending.
Be careful about choosing not to make a Will. Not having a Will won’t prevent you from dying. Having a Will doesn’t mean having to incur significant legal fees. If your family members go to court over who should receive your assets because you wishes weren’t clear, the monies that could benefit them may be lost in the litigation costs.
Contact a Wills and Estates Lawyer
Getting a Will prepared by a Wills & Estates lawyer is highly recommended. Your will get a Will that outlines your wishes and protects your family based on legal advice specific to your situation.
Making Your Own Will
Although there are risks in failing to obtain professional legal advice, a do-it-yourself Will may be alternative that works well. Don’t be put off in thinking that this is a one-time decision; you can change or update your Will at any time in the future provided you are legally capable of making a new Will. The assets you leave behind when you die are a final expression of love, so deciding who gets these assets and how much each individual should not be put off. The decisions you make today can change the lives of your family members for the better.
