There appears to be divided opinion on the importance of Wills. There are a group who believe that a Will is a document to be written on one’s deathbed, as a final statement to explain who will receive the family heirlooms. Fortunately, most of us are wiser, and understand that a Will is something that everybody needs, no matter how old, or how wealthy. A Will is a vital part of your financial plan that is written when you are young, and updated throughout your lifetime.
“Fortunately I don’t need a Will yet”
A caller contacting LegalWills.ca on behalf of their mother
But statistics show that what we know about Wills, and what we actually do about Wills are two very different things. I think most of us were shocked to hear that Prince didn’t have a Will, while silently thinking that it’s something that we really need to get to ourselves.
Recent surveys have been quite consistent in putting the number of Canadians without a Will at just over half. A 2013 CIBC survey put the number at “about half”, while a 2012 LawPRO survey claimed that 56% of Canadians did not have a Will in place. Most recently, in 2014 the BC Notaries reported a number of 55% of British Columbians without a Will.
At LegalWills.ca we were interested in not only the number of people without a Will, but also the number of people with out-of-date Wills. This came from a social discussion on Wills that went something like this;
Dave: I do have a Will, but I wrote it a while ago.
Me: you think it may need to be updated?
Dave: Well, I wrote it just after we got married, but before we had the children.
Me: Are you kidding me? your girls are now 24 and 21 years old !! you don’t have a Will. Continue reading
Dying intestate means that you have died without a Will.
I’m not sure that anybody plans to die without a Will. After all, most people don’t plan to die. But it happens. In fact, the vast majority of Canadian adults do not have a Will in place, and most of these people think that they will probably have plenty of opportunities to write one at some time in the future.
Dying intestate…who does that?
Amy Winehouse, Barry White, Jimi Hendrix, Sonny Bono and Bob Marley would make a terrific band. However, what brings them together in this article is that they all suffered the ignominy of dying intestate.
But you don’t have to be young with a rock and roll lifestyle to end up dying without a Will. Roman Blum was 97 years old with an estate valued at $40M, he died without a Will and and incredibly with no heirs. His entire fortune in this case, was destined for the government coffers. Continue reading
First a definition;
A stepfamily or blended family is a family where at least one parent has children, from a previous relationship, that are not genetically related to the other parent. Either one or both parents may have children from a previous relationship. Children from a stepfamily may live with one biological parent, or they may live with each biological parent for a period of time.
Having watched families fight over the estate and end up not speaking to each other for the rest of their lives, I can tell you first hand that leaving this world without making a plan for what’s in your estate is one of the worst thing you could do for your loved ones.
Over the Thanksgiving weekend, the CBC led their business section with an article on writing a Canadian Last Will and Testament and suggested that you should discuss with your children exactly how you were planning to divide your estate.
There were some great comments on the article from people who were living the nightmare of administering an estate, some estates had a Will involved and some didn’t. Problems arose with children fighting over particular bequests, Executors were not following the legal procedures, aged parents were being forced to change their Wills in the advanced years. What struck me though was the level of misunderstanding of estate planning law from the general public. In a total of 200 comments, I have picked out 10 terrible misconceptions that people have taken the time to submit in response to the article. The lesson here is do not take legal advice from a comment forum. Continue reading
If a Canadian dies without a Will, they have left a bit of a mess for their loved ones, and sadly missed out on an opportunity to distribute their assets in a meaningful way. Instead of recognizing friends or organizations that have made an impact on their life, they have left all of the planning to their Provincial government who have already decided how the assets will be divided. It may come as a surprise however, to learn that every Province is different and that there are some very inaccurate assumptions. In this post we will run through a few scenarios, and highlight some Provincial differences.
Let us start with the most common misconception;
If you are married, then your entire estate will go to your spouse.
The statistics still show that over 65% of adults in Canada do not have an up-to-date Last Will and Testament – even though most people know that they need a Will. Once in a while, somebody will tell us that they don’t need a Last Will and Testament – yet. Here are the top ten excuses for not having a Will, and we will explain why everybody should take the time to prepare their Will write now.
1. Everything is going to my spouse whether I have a Will or not
In reality, there is not a single Province in Canada in which you can guarantee that this will be the case. Without a Will, the distribution of your estate is determined by “intestate law”, which follows a rather complicated flow depending on your family situation. What makes it more complicated is that no two Provinces are the same. In most Provinces, if you are married with children, your spouse will not receive the entire estate. Continue reading