Why People Who Own Real Estate Don’t Make Wills

This week I received a call from a relative of someone who died. After expressing my condolences, I asked if there was a will. The answer was the person refused to discuss wills with loved ones.

The conversation shifted to me asking, what did this person have to worry about in their estate if he made no will?

Nothing much, was their answer, except some real estate. This was his condominium.

Alright then, I said.

Since this was a condominium, the deceased’s estate will need to go through probate. Probate is a process to confirm who is in charge of a person’s estate. This process also confirms who are the estate beneficiaries.

What Happens When There’s No Will?

Normally, when there is no will, next of kin in Ontario would have to apply to court for authority to deal with the deceased’s estate.

You can’t avoid probate by dying without a will. Probate is more expensive without a will.

In these cases, the government gives you a will and dictates all the terms that go into your will. This is because you did not make a will. That may be why people do not make wills; they do not know what happens after they die.

What You Need to Know

If you do not make a will, government laws decide who is in charge and who gets everything and when. You will pay provincial estate administration tax (Ontario’s famous EAT) and the maximum income tax possible. The government will not allow you to give anything to unmarried partners, your favorite charity or people you care about unless they are next of kin.

There is an intestacy when there is no will. You cannot set up trusts for people who can’t handle money. Intestate is another word that describes persons who die without wills. The government has laws to distribute your estate if you have no will.

Someone must come forward and apply to be appointed to be an estate trustee without a will. They will need to hire a lawyer to fill out the paperwork regardless of the size of the estate. Lawyers will ask for a deposit for fees of anywhere from $5,000 and up.

The other intestate beneficiaries must confirm they give up the right to administer the estate. They must consent to the appointment of the estate trustee without a will. This is a risky proposition as people may change their minds and choices.

Ontario residents must also consent to dispense with a bond or security to protect creditors and beneficiaries. Costs of a bond can be very expensive and prevent honest persons, without financial resources, from applying to be the estate trustee without a will.

All of this process adds time and expense to be paid for by the deceased who did not make a will. Don’t leave your loved ones in the dark. Make a lawyer-prepared will, especially if you own real estate.

Nobody can act if you do not name an estate trustee or executor in you will.

Discover ways to save taxes and expenses in your estate. Set up an initial meeting to discuss your will options.

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

Ed Olkovich