What can happen if you don't have a Will
 It’s
very simple. When you have a Will, you decide how your wealth
will be distributed. Without a Will, the provincial government
decides. Plus when you have a Will, you can ensure your wealth
is handed down in the most tax efficient way.
A Will lets you ensure your spouse and children will have
sufficient income. And it allows you to use tax saving or
deferral strategies to help minimize what the government takes
and leave more for your heirs.
And if you have no heirs, you can use a Will to ensure that
certain people or organizations are beneficiaries of your
estate.
If there are people or favourite causes you’d like
to leave something to, a Will can turn your good intentions
into reality. But when you die without a Will, your intentions
are replaced by provincial laws.
The consequences of dying without a Will
The legal term is “intestate” and there are major
drawbacks. For one thing, when you die intestate, legal fees
and taxes can take a sizable portion of your estate. It can
also have serious financial consequences for your loved ones.
When you die without a Will, your assets are distributed
according to provincial laws and generally divided among your
surviving relatives in order of family ties. This may be very
different from what you would have wanted.
For example, your entire estate could go to a distant relative
you don’t even know, while the dear friend or charity
you had wanted to get everything gets nothing. Simply because
you didn’t make a Will.
Another problem area is the division between spouse and children.
If for example you leave behind three children and a spouse,
your spouse might receive only ¼ of your assets, the
children ¾. This could be a serious hardship for your
spouse.
How assets are divided among spouses and children varies
from province to province. Even the definition of “spouse”
varies from province to province.
If you have no living relatives, your assets go to the province.
And that’s such a wasted opportunity because your money
could have instead gone to a favourite charity or friend.
In spite of all of the benefits of having a Will, an alarming
number of people never get around to it. If you have a proper
and up-to-date Will, good for you. If you don’t, you
really shouldn’t put it off any longer.
It’s a simple and inexpensive thing to do. And for
the small amount of time and effort it takes, you get a great
deal of satisfaction and peace of mind.
Important information about our financial planning services can be found at the bottom of our
homepage.
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