Have You Thought About Your Will Recently?
Fewer than half of Canadians have a will. A look at the numbers — and the reasons to bring your estate plan up to date.
While estate planning is essential, many Canadians still do not have a will or a power of attorney.
A survey conducted in April 2022 revealed some concerning findings about Canadians:
- Fewer than 30% of Canadians have an estate plan.
- 48% of Canadians have a will, which means the majority do not.
- Here is the breakdown by age group among those who have a will:
- Canadians aged 55 and over: 74%
- Canadians aged 35 to 54: 34%
- Canadians aged 18 to 34: 30%
- Among all respondents, only 35% have designated a power of attorney.
The trend is clear: the older the respondents, the more likely they are to have a will. However, even if you are young, a will is crucial.
The importance of a will: what happens if someone dies without leaving a will?
Dying without a will, also known as dying intestate, means you have no say in your estate. You do not decide who will receive your assets. Provincial law will decide for you. Here are a few examples of assets that will be distributed according to the law in the case of an intestate death:
- Your home
- Your business
- Your bank accounts
- Your family heirlooms
- Your insurance proceeds
- Your investment accounts (RRSP, TFSA)
- Your collectibles (works of art, vehicles, jewellery, etc.)
As you can see, dying without a will means you cannot decide what happens to your property — hence the importance of a will.
The importance of a power of attorney (liquidator)
A liquidator is the person responsible for ensuring that your estate is settled according to your wishes. Choosing a liquidator is not a decision to be taken lightly, as this person will have several tasks to carry out:
- Take inventory of your property.
- Publish a notice of closure of the inventory.
- Recover amounts that were owed to you.
- Pay the estate’s debts.
- File your income tax returns and pay your taxes, if applicable.
- Distribute your property to the heirs.
The liquidator will play a major role and carry significant responsibilities, hence the importance of choosing someone you trust.
In short
Having an estate plan is crucial to ensure that your assets are distributed according to your wishes. To get started, take inventory of your assets and think about your wishes, your needs and your heirs. Such a plan can be complex, so do not hesitate to contact me if you need help or would like a second opinion.
Source: Royal Bank of Canada study
Why consult a notary?
Writing a will on your own may seem economical, but an ambiguous or incomplete document can complicate the settlement of your estate and even create conflict among your loved ones. A notary makes sure your wishes are clearly expressed, that the document meets legal requirements, and that it will be easy to locate when the time comes.
Keep in mind that estate rules are not the same across the country. Quebec and Ontario, for example, do not regulate the form of wills and the settlement of estates in the same way. If you own property in more than one province, or if you have recently moved, meeting with a notary — or the appropriate legal advisor in your province — is all the more relevant.
When should you review your will?
A will is not a document you write once and then forget. Certain life events should trigger a review:
- A marriage, common-law union or separation
- The birth or adoption of a child
- The purchase or sale of a business or a significant property
- The death of an heir or of your designated liquidator
- A move to another province
Even without a major change, rereading your will periodically is a good habit. Do the wishes you set out several years ago still reflect your situation today?
Also consider a protection mandate
A will takes effect upon death, but what happens if you become incapable of managing your affairs during your lifetime? A protection mandate lets you designate in advance the person who will look after you and your property in the event of incapacity. Without this document, your loved ones could face long and costly proceedings to obtain the right to act on your behalf.
A complete estate plan therefore generally includes a will, a protection mandate, and a review of the beneficiary designations on your plans and insurance policies. Every situation is unique, so it is worth discussing yours with a notary and your advisor.
Next step
Estate planning involves legal, tax and financial considerations all at once. Our team can help you take stock of your situation and coordinate everything with the right professionals. Feel free to contact us to discuss it.
