Estate Planning
The majority of Canadian adults (56%) do not have a proper will in place. When asked, they say they can’t afford one, or they don’t know how to get started. Not having a will in place can cost thousands of dollars in legal fees, bitter family disputes, as well as legal battles between siblings and/or their spouses.
The majority of Canadian adults (56%) do not have a proper will in place.
No Will? What Happens…
In Ontario, without a valid will, your assets will be distributed as follows:
Spouse Only: Your entire estate will go to your spouse.
Spouse + One Child: The first $200,000 of your estate will go to your spouse; the balance will be split equally between your spouse and your child.
Spouse + Children: The first $200,000 goes to your spouse, the balance is split one-third to spouse; and two thirds are split equally between the children.
Children, but No Spouse: Children share estate equally.
No Spouse or Children: the entire estate goes to your parents or surviving parent. If your parents have predeceased you, your siblings will share it equally. Children of deceased siblings will share their parents’ share equally. If only nieces and nephews are alive, they will share it equally.
No Lawful Heirs: Your entire estate becomes property of the province.
Three Common Estate Planning Mistakes
Choosing the wrong executor
Although most people (78%) have no experience in managing an Estate, more than 80% of us choose a family member or close friend as our executor. The responsibilities of an executor include funeral arrangements, valuating estate assets and liabilities, filing tax returns, collecting insurance proceeds, and accounting for the estate’s financial activities.
Preparing your will and then forgetting about it
Your will should be reviewed at least every five years. Other changes that should trigger a review include a marriage, divorce, birth, diagnosis of a critical illness, or moving to another province and/or country. Be sure to keep good records and make sure your executor knows where to find your will. Too many times an estate is delayed because the will or other crucial documents can’t be found.
Underestimating the time involved in administering an estate
Tax errors, litigation and other complications can delay an estate’s administration for months if not years.
Book a Family Estate Planning workshop here. Together you and your family can openly discuss your wishes and eliminate fights down the road. Your appointed executors will learn the Eight Duties of an Executor and what will be expected of them.
Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp.
4665 Yonge Street, Suite 309, Toronto, ON M2N 0B4 t 416.964.0440