The Importance of Having a Valid Will Wednesday, 30 March 2011 20:04 By Melissa S. Goes
Having a valid Will is an important part of any Estate plan. A Will permits you to set out your wishes about how your Estate should be administered and distributed after death. If you were to die without a valid Will, your assets would be distributed according to the Ontario's intestacy laws at the time of your death.
By having a Will you are able to appoint an Estate Trustee to administer your Estate. An Estate Trustee should be someone you consider competent, reliable, and trustworthy. If you die without a valid Will, your heirs or someone acting on your behalf must apply to the Court to become your Estate administrator. This process is less than completely desirable, for the person appointed to administer your Estate may not be someone that you would have chosen. Your Estate cannot be administered until someone is appointed by the Court, which can result in an unnecessary expenditure of both time and money.
If you die without a valid Will, your Estate may be distributed contrary to your wishes. The Ontario Succession Law Reform Act (SLRA) stipulates that if you die without a valid Will, your legally married spouse is entitled to your Estate up to a value of $200,000.00, and any amount over $200,000.00 is to be divided equally among your legally married spouse and your children. The SLRA does not provide for any distributions to common-law spouses. If you die without a valid Will and have neither a spouse nor children, the SLRA sets out a scheme for distributing your property to your surviving relatives. This may result in your Estate being inherited by people you would not intentionally select, such as distant relatives. If you do not have any living relatives or if none can be found, your Estate would be administered by the government and your Estate assets would transfer to the government.
By not having a valid Will at the time of your death, any portion of your Estate which passes to your minor child will not be immediately released to your spouse for the child's benefit. This portion will be paid into Court and held until your child reaches the age of 18. At 18, your child can demand that their full inheritance be handed over to them. A Will can help prevent your child from spending their inheritance prematurely, by creating trust provisions which specify how much inheritance your child receives and at what ages.
People often find that the most difficult decision in Estate planning is determining who should have custody of their minor children in the event that both parents die. If you have legal custody of a minor child, it is important that you have a valid Will appointing a custodian of your child and a guardianship of your child’s assets. Although the designation of a custodial parent in a Will is not binding on the Court, it is significant evidence as to what you believed was in the best interests of your child at the time, and is taken into consideration by the Court.
When it comes to getting your Will prepared, there is no time like the present. By having a well-drafted Will, you will have the peace of mind of knowing that you have placed your personal affairs in order and that your family and loved ones will be provided for according to your wishes. If you have a Will, it is important that you review it regularly to determine whether it has been affected by any changes in your circumstances or intentions.
Source: http://www.goatoronto.com/news/communications/the-importance-of-having-a-valid-will.html
