The Hidden Dangers of Passing Without a Will in Ontario – Part 2

Read Part 1 of this post, The Hidden Dangers of Passing Without a Will in Ontario.

Here’s what happens in Ontario if you do not make a will.

Intestate Rules Apply

You do not get to choose who is your estate trustee without a will. This person must be a relative appointed by the court to control your estate. This decision must be made by a judge.

If you are lucky, all your relatives can hire the same lawyer to appear in court. Fat chance they will all agree to use the same lawyer. Everyone likely needs separate lawyers.

Just imagine how many thousands of dollars will be spent in legal costs for three or more lawyers going to court arguing who should sell your house and contents. Now, compare that to the costs of having a professionally prepared will. Which do you prefer to pay, hundreds or thousands of dollars?

What’s a Better Investment?

Without a will, you do not choose who your estate beneficiaries are and when they receive their inheritance. Government rules decide who inherits. Blood relatives that you have been estranged from for decades can inherit all your stuff.

You are free to make your will. But for many reasons, some people don’t.

No Tax Reduction for Intestate Estates

Without a will, you cannot use legal strategies to reduce probate costs and income tax. This means that you pay whatever taxes the government can impose. This leaves less for your loved ones. Your estate pays more for taxes than you may need to pay.

If you are intestate and do not make a will, you cannot support your favourite charities or causes.

You also cannot provide for your common-law spouse or special needs beneficiaries. This can compel them to hire lawyers and go through the courts. They must establish their entitlement and need for additional support.

Is it possible to avoid an intestacy? Yes, it is. This is possible by exercising your freedom to make your own will. I can help you if you do not know where to begin.

What’s Your Estate Plan?

Do you find estate planning confusing? I wrote an estate planning book for Canadians. I can meet to discuss your needs. Book a meeting today. I look forward to helping you.

As a Certified Specialist, estate law is all I do.