How Estate Smart Are You? Part 1 of 2

Test yourself – select True or False for each question. Then read the answers below.

1.    I need a lawyer to make a will.
True □  False □

2.    Common-law spouses automatically inherit their partner’s estate in Ontario.
True □  False □

3.    I own everything jointly with my spouse or children so I don’t need a will.
True □  False □

4.    I cannot appoint a guardian for my children in my will.
True □  False □

5.    I left everything to my children in my will and remarried. I still want my children to receive my entire estate.  I do not need to make a new will.
True □  False □

Answers

1.    I need a lawyer to make a will.

False. You can make your own will without a lawyer but it’s very risky.

Do-it-yourself wills are frequently challenged in court. Your beneficiaries may later spend thousands of dollars each day in court to find out your will is invalid.

Only lawyers are trained in tax, trust, property, family, will and estate law and are able to give legal opinions on wills.

2.    Common-law spouses automatically inherit their partner’s estate in Ontario and they must share it with your children.

False.  In Ontario, only married spouses automatically inherit. Common-law spouses must be named in a will to inherit an estate. Every province is different for estate purposes.

What if you are a common-law spouse without a will to protect you? You need to hire a lawyer to claim support or property in costly legal proceedings.

3.    I own everything jointly with my spouse or children so I don’t need a will.

False.  What if the other joint owner dies first?  You need a will or the government writes one for you that you may not like.

Your estate then passes only to certain blood relatives and you have no control over who gets what.

Unless you write your will, the people you love, charities and friends cannot inherit or benefit.

4.    I cannot appoint a guardian for my children in my will.

False.  Parents can name a guardian by making a will. You can then specify how and when the children will receive their inheritance.

5.    I left everything to my children in my will and remarried. I still want my children to receive my entire estate.  I do not need to make a new will.

False.  This one is tricky; when you marry, all prior wills are automatically revoked.  To avoid this, your will must specify that you have a wedding date.

You cannot ignore your new married spouse’s claims to share in your property unless you have a prenuptial or marriage contract.

Check back for Part 2 of How Estate Smart Are You?

In the meantime, peruse through Estate to the Heart: How to Plan Wills and Estates for Your Loved Ones for more answers.