Every wonder what happens if you die without a valid Will in place? Your assets will be distributed according to the formula set out in the legislation of the province in which you live. In Ontario, we have The Ontario Succession Law Reform Act (SDA). 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.

 

It is important to review and/or update your Will under the following circumstances:

 

Marital Status Changes: In Ontario; marriage revokes an existing will, in the case of divorce; the will is read as if the former spouse has predeceased you, whereas a separation will have no effect on the will.

Nature of the assets change – e.g. sell your house and invest the money in mutual funds.

Residence change

Loss or addition of beneficiaries

A change in your health

 

Many people have opted to save the money and purchase Do It Yourself (DIY) kits, however there are several problems associated with DIY wills, some of these include:

 

  • Failure to name an executor or alternative executor
  • Failure to dispose of all assets, thereby creating a partial intestacy
  • Gifting more than you have
  • Failure to appreciate the rights of spouses and dependants
  • Improper wording
  • Invalid provisions

 

I always recommend you have your will prepared by an experienced lawyer or notary. If you don’t have one, give me a call I know a few that can help you.

Have a great weekend,

Tracey

 

 

 

Source: Elaine Blades, Advisor.ca published 02-25-13, MT 03-12-15

Image courtesy of Stuart Miles at FreeDigitalPhotos.net