One of the most common questions I get asked as a lawyer is, “Why do I need a Will”? Usually, I respond that no one needs to get a Will, but rather, the benefits of executing a Will more frequently outweigh the time and cost that it takes to create one.
With that in mind, it is a worthwhile exercise to explore some of the benefits of executing a Will in Ontario. However, we must first establish what a Will is.
A Last Will and Testament, or Will, is a legally binding document wherein the Testator (the person signing the Will) formally establishes where their property and assets will go upon their death. There can be many elements to a Will. I will be addressing these various elements of a Will in future blogs. The most common elements include:
Appointment of an Executor (also known as an Estate Trustee) to administer the Estate.
Designation of beneficiaries who will receive a share of the Estate, in the form of specific assets or a percentage of the total Estate.
Appointment of Guardians for minor children.
Creation of trusts to establish the timing and method of the distribution of assets to the beneficiaries of the Estate.
Now that we know what a Will is and its main elements, it becomes important to understand the benefits of creating a Will. I find it often easier to explain the benefits of completing a Will, by explaining the consequences of dying without a Will. These consequences can include:
Your assets are divided in accordance with the Succession Law Reform Act, which may not be in accordance with your wishes.
A person you prefer not to represent your Estate, makes a court application to be appointed as your Executor.
Surviving friends or family members begin litigation fighting over your assets or the right to administer your Estate.
The person who wishes to be appointed as your Executor, must obtain authorization from the court to be appointed (a process called “Probate”), costing your Estate legal fees and Estate Administration Tax.
Someone you prefer not becoming the Guardian of your children, makes an application to the Court to be appointed.
Your assets automatically flow to your beneficiaries, without any of the advantages and benefits that could have been structured in a trust.
This is a non-exhaustive list of some of the consequences that can happen if you die without a Will. A Will is an excellent legal tool for simplifying your Estate. I always advise my clients that completing a Will is an act of love for the loved ones you leave behind. By executing a Will, you removal all ambiguity surrounding your dying wishes, you reduce legal fees and expenses for your family, and you minimize the work and effort your loved ones must go through when administering your Estate.
If you or a loved one have not yet completed a Will, please consider booking a consultation with Suk Law today.