Three Reasons You Need a Will

AUTHOR: PAULINA PENA

Having a lawyer draft and execute your Will is an important task that is often overlooked. Either you decide it’s not a significant enough task, which you promise to eventually get to or it’s something you decide is not in your cards due to a multitude of reasons. You may either feel overwhelmed with the entire Wills and Estate Planning process because you feel as though you haven’t acquired enough assets, or you simply think you can get by without having a Will. Below, we’ve compiled three reasons as to why you would need a Will, what happens if you don’t have one, or opt for a digital Will builder.

1) You have Control over Your Assets

Allotting certain assets to your spouse, children or family members may seem like a concern that you would not prefer to be bothered with at this moment, however, you do not know what tomorrow could bring in store. Illnesses and accidents sometimes arise out of nowhere, which is why it’s important you are prepared.

If you suddenly pass away without a Will, otherwise known as dying intestate, you will no longer have control over your assets. In fact, the assets will be distributed in accordance with provincial laws, regardless of your wishes and the court will now assume control. In Ontario, this is classified under The Succession Law Reform Act (SLRA). Dying intestate will also result in you not having control over specific endowments for selected individuals or even charities. Additionally, common-law partners are also not covered under the intestacy, which may also present issues.

Moral of the story, dying without a Will is the same as handing over the keys of your vehicle to someone you may not trust and having them take charge.

2) Your Children are Protected

We are willing to do anything for our children. We put them in the best schools, sign them up for extracurricular activities and enroll them in extra classes to make sure they bring their grades up. However, passing away without a Will may negatively impact your children, especially if they are minors.

First and foremost, if both you and your spouse pass away without a Will, the court will determine the legal guardian of the children, which go against the individual(s) you desired to be their legal guardians.

Additionally, dying intestate will lead to complications with your children’s inheritance. For starters, they will not receive their inheritance until they reach the age of 18 (adulthood). Therefore, they will not have access to these funds for any emergency or specific needs,

such as extracurricular activities and educational opportunities. However, creating a Will prior to your passing and appointing someone to handle your estate (trustee), you will ensure your children have a more comfortable future. The trustee will be able to give them access to the necessary funds they need for their specific activities, all while ensuring this money is used carefully and in a way that aligns with your values.

3) You Save Money in the Long-Run

Yes, seeing a lawyer to have a Will drafted and executed costs money. But have you considered the financial repercussions of not having a Will or using a digital Will builder for estate planning? In the short-term, you are saving yourself money, however, it will cost you later down the line.

Firstly, resorting to an online Will builder seems cost effective, but it is not necessarily the best step to take. What you save now, you will have to pay later on as you will still need to take that extra step in having your Will signed and stored, which involves a lawyer. Additionally, an online Will builder may work for simple estate planning, however, when you have complex matters such as dual Wills for business owners, life insurance trusts, Henson trusts and blended families, a digital Will builder platform can muddy the waters.

When you create a Will, you will need to appoint an executor to administer your estate and assess applicable taxes, otherwise known as probate and involves probate taxes. This may also be a reason you’re avoiding the Wills and estate planning process. However, not having a Will may subject your family to higher legal fees, administrative fees, court costs and higher income taxes on the estate. The entire process may lead to complexities, stress and potential arguments amongst family members.

Key Takeaways

Seeing a lawyer to create and execute a Will seems costly and time consuming but resorting to online platforms to help you a build a Will or not creating one at all will cause issues you would not your family to be subjected to. If you’re still feeling overwhelmed and are concerned about the entire process, our team of professionals is here to help. We’ve also recently released a guide to help beginners understand the estate planning process. Once you’ve read the guide, don’t hesitate to reach out to us. Our family is here for you and your family every step of the way.