Dying Without a Will
More than 40% of Canadian adults don't have a will. We think that number would drop significantly if more people understood the consequences of dying without one.
Consider what would happen if you were to die "intestate." First, your estate assets would be frozen until the courts appoint an administrator, which could cause financial hardship for your family.
Eventually, the estate would be distributed according to provincial intestacy laws. These vary by province, but typically provide a set dollar amount to a surviving spouse, with the balance divided equally among the spouse and each child. We are speaking of a married spouse here, and biological or legally adopted children. A common law spouse or step-children may not be recognized under intestacy laws. If you have no surviving spouse or children, the assets would go to your next of kin in the order determined by the province.
Indeed, the administrator would have very little discretion in distributing your assets. Many opportunities to reduce tax -both before and after death - would be reduced or eliminated without a will and related estate planning.
In the case of minor children or dependants, your preferences about who would become their guardian would go unheard. Payments to minor children would be held in trust by the courts, but only until they reached the age of majority (18 or 19, depending on the province). At this point, they would have a legal right to the money to spend as they wish - a thought many parents would find extremely unsettling.
It's easy to see that without a clear indication of your wishes, your loved ones could be subject to unnecessary delays, expenses, angst and even potential conflict among themselves at an already stressful time in their lives.
If you don't have a will, we urge you to give our office a call. Our team can point out potential issues and general strategies that may apply to your situation, and recommend an estate professional to help you draw up a will. A relatively small investment of time and money could make the world of a difference to those you leave behind.
Return to Newsletter
The information contained herein is specifically for ON residents only and does not constitute an offer to sell or solicit sales in any other Canadian or foreign jurisdictions. IPC Securities Corporation is a member of the Investment Dealers Association of Canada.
This Report is written by Investment Planning Counsel, a fully integrated Wealth Management Company. Mortgage broker services provided by IPC Save Inc. (ON lic. #10227). Mutual funds available through IPC Investment Corporation and IPC Securities Coproration. Securities available through IPC Securities Corporation, a member of CIPF. Insurance products available through IPC Estate Services.
If you wish to unsubscribe from this newsletter, click here.