Why Young Families Need a Will
- Estee Nemetz
- Apr 2, 2020
- 4 min read
According to a poll conducted by the Angus Reid Institute in December of 2018, the majority of Canadian adults say that they do not have a will.[1] 25% of those polled said the reason they haven’t written a will is that they are ‘too young’ to worry about it, and almost as many (23%) said they don’t have enough assets to make a will worthwhile. According to the poll, another eight per cent said that the main reason they don’t have a will is that they “don’t want to think about dying.”
According to a poll conducted by the Angus Reid Institute in December of 2018, the majority of Canadian adults say that they do not have a will.[1] 25% of those polled said the reason they haven’t written a will is that they are ‘too young’ to worry about it, and almost as many (23%) said they don’t have enough assets to make a will worthwhile. According to the poll, another eight per cent said that the main reason they don’t have a will is that they “don’t want to think about dying.”
The poll, which posed questions to 1,516 Canadians, revealed that older Canadians (those over the age of 55) are nearly four times more likely than Canadians between the ages of 18 to 34 to have a will and twice as likely as those aged 35 to 54.
Due to the novel coronavirus, young and old alike are forced to confront their mortality like never before. The confidence and assurance of our youth is no longer a given, and now, more then ever, amid the upheaval, many of us are confronting a sense of unknown. We are trying to plan for the future as best as we can, which entails trying to create a sense of comfort and security for our family. One of the best ways to ensure that the people you love will be taken care of in the event that something happens to you is to write a will. Below I have articulated a few reasons why it is so vital for young families to have a will:
Distribution of Assets
In your will, you can set out your assets and to whom those assets should be distributed to. If one dies without a will, one’s assets will be distributed according to the laws of intestacy. Ontario’s Succession Law Reform Act sets out exactly how the estate will be distributed, and in what order. Therefore, without a will, you will have no say in how any part of your estate is distributed. For example, a spouse is given special treatment under the Succession Law Reform Act, in the form of a preferential share before the other assets are distributed. Note that common law partners are not considered spouses under the Succession Law Reform Act. Therefore, if you do not have a will, your common law partner may very well be left with no inheritance.
For those with young children, having a will allows you to set up a trust for minor beneficiaries in a will, and allows you to specify at what age to distribute the inheritance and how. If you die without a will, your children will receive their share according to the Succession Law Reform Act at the age of 18. Many people feel this is too young of an age to receive an inheritance.
Naming an Executor
Another important reason to have a will is to appoint an executor. An executor is an individual that you trust and will be responsible for managing your estate when you pass away, and carry out duties such as finalizing your financial affairs, distributing your assets as per your will, selling any properties etc.
If one dies without a will, The Estates Act sets out who may apply as estate trustee of the deceased’s estate on intestacy. There is an order of priority for acting as estate trustee, and if someone with lower priority wishes to act as estate trustee, the individual with higher priority must renounce their entitlement as estate trustee and consent to the other person that wishes to act. Therefore, if one dies intestate, not only are your assets not distributed according to your wishes, but the estate trustee that is appointed may not be the person you wish to handle your estate.
Guardianship
For parents of young children, this is one of the most important reasons to have a will even if your assets are not substantial. If parents die together and they have not made a will, they have lost the opportunity to express their wish of who should be the guardian of their children. A will is a way for parents to identify to the Court the person(s) they nominate to be a guardian for their children in case something happens to both parents. Without a guardianship provision, it will be up to the Court’s discretion to determine whom to appoint as guardian.
When it comes to estate planning, it is vital to hire an experienced lawyer who can help articulate the legal terms in an effective manner as per one’s wishes. There are many legal rules and intricacies and the drafting of a will must be done properly in order to ensure that it will not lead to costly litigation down the road, or even to be invalidated. Wills and Estates law is complex and challenging. Having a wills and estates lawyer that is experienced and can prepare your will, powers of attorney and trust documents in tandem will ensure that you have the peace of mind in knowing that your wishes have been expressed and the people you cherish will be taken care of.
By: Estee Nemetz, Associate Lawyer at Reiter-Nemetz
For more information on Wills and Estates, please feel free to contact Estee Nemetz at enemetz@reiternemetz.com or Marilyn Reiter-Nemetz at mreiter@reiternemetz.com or 416-665-1458 ext. 227, and we would be happy to assist you with your legal needs. Please note that due to COVID-19, we will be conducting all client appointment via telephone or utilizing online technology.
The information contained in the article is intended for general information purposes only and does not constitute legal advice.
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