As the cost-of-living crisis continues, Canadians are finding it easier than ever to procrastinate on making a will.
Parents and their children struggling with higher rents and rising inflation understandably feel like they have more important things to worry about than awkward discussions about death.
The trouble is that parents seem just as willing to avoid the topics of succession and inheritance in better economic times, judging by the results of Angus Reid’s regular surveys on estate planning. According to the most recent poll, around half of adult Canadians do not have a will – a proportion that has remained remarkably consistent for at least the last decade.
But I have a feeling that the situation would feel a little more urgent if parents had a better understanding of the legal, financial and emotional messes they leave behind when they die without a will.
To help them along, here are my top 4 reasons parents should stop procrastinating and make a will:
- Avoiding court
When someone dies without a will, their heirs must go to court to obtain a certificate of appointment of estate trustee. Nobody who has had any experience with the court’s horribly overburdened estates office wants to go this route, since it routinely takes months before a certificate of appointment is issued confirming trustees in their position, allowing them to get on with the business of distributing assets.
- Deciding for yourself
When someone dies without a will in Ontario, it’s effectively the government who decides what will happen to their property – via the province’s Succession Law Reform Act, which sets strict rules for the distribution of assets.
Under the Act, the deceased’s surviving spouse gets the first $350,000 from any estate, with the remainder divided between the spouse and any surviving children. When there is just one child, the assets are split equally with the spouse.
If there is more than one child, then the spouse gets one-third of the amount over $350,000, and the remaining two-thirds are divided equally among all the children.
- Minimizing sibling squabbles
A strict equal split sounds like the fairest way to share assets among your kids, but it may not always make sense, depending on your own relationship with each and what you’ve already given them while you’re still around. If one of your children takes a caregiving role, they may feel like they’ve earned a bigger share, while an estranged child may (or may not) expect nothing at all.
The SLRA makes no provision for these kinds of individual circumstances, which is a recipe for hurt feelings and disagreement among those left behind, especially for testators with more complex family arrangements.
Not properly providing for dependents with disabilities is also a recipe for disaster and may result in the loss of government housing; programs; and support.
- Recognizing sentimental value
Money is a common cause of friction among the children of recently deceased parents, but some of the most bitter and emotional estate battles I have seen revolve around trinkets, china, jewelry and other personal possessions that would be utterly worthless to anyone outside the family.
By turning your mind to the items that are most likely to be contested by beneficiaries and spelling out your intentions for them in your will, you can nip a lot of these issues in the bud.
An experienced lawyer can help ensure your wishes are accurately reflected in your will, and once it’s executed, you may want to communicate with beneficiaries about why you made each decision, so there are no big shocks once the times comes to administer your estate.
Disclaimer: The content on this website is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this website are advised to seek specific legal advice by contacting members of Laredo Law (or their own legal counsel) regarding any specific legal issues.
