Dying without a will is never deliberate. We don’t choose to leave this world without a plan for our assets and family members. Even so, many Canadians die without a will putting their estate assets at risk and forcing loved ones to deal with the unfortunate aftermath.

So while we don’t recommend dying without a will, we’ve assembled the pros and cons of doing so.

Pros

There aren’t any.  

Cons

Your family members don’t get closure.

Your estate plan is much more than a document distributing your assets. It is a cherished and meaningful message left behind for loved ones. You can impart wisdom for the next generation such as the importance of family, the value of a strong work ethic, and the greatest lessons you’ve learned in life. You can also provide reasons why you’ve made certain decisions, preventing hurt feelings and unanswered questions. Imagine how meaningful such a document would be for family members grieving your death.

Your estate assets are distributed according to a provincial formula.

Every province has a set of rules for how estate assets will be distributed if an individual dies without a will. The rules typically protect your spouse and children, but it can get complicated if you have a separated spouse or children from a previous relationship. If you do not have a spouse or children, your assets could be distributed to your parents, siblings, or even long lost uncles, aunts, and cousins. You can remove the possibility of estate assets ending up in the wrong hands with a well-designed will. 

You can’t control when and how assets are distributed.

Just as your will determines who gets your assets, it also outlines how your assets are distributed. A common approach for many parents is to distribute their estate in tranches as their children reach certain milestones. This staged distribution can teach children to be responsible with money and also protect their inheritance from partners or spouses. Without a will, estate assets are divided according to the provincial formula and are typically distributed all at once when the beneficiary reaches the age of majority, which is 18 or 19 depending on the province.

You can’t choose a guardian for your minor children.

Particularly important if you are a single parent, your will outlines your choice of guardian for your minor children. In the absence of a will, family members may be forced to apply to the court to obtain guardianship – family members that may have otherwise not been chosen by you.

Your estate assets are at risk.

When you pass away, there are immediate decisions that need to be made to preserve the value of your estate. These decisions could include selling volatile investments, cancelling services no longer needed, implementing beneficial tax elections, or adding an insurance policy to protect assets. And, they typically can only be made by the party appointed by will or by the court. The latter takes valuable time to implement leaving the opportunity for your estate assets to decrease in value.

You can’t decide who manages your estate.

The party who manages your estate should be organized, trustworthy, business minded, and above all else, chosen by you.

Additional costs are incurred.

Getting your estate plan in order does incur a small cost upfront, but it pales in comparison to the potential costs of dying without a will. In addition to the legal fees associated with extra court applications, there can be increased litigation from interested parties and lengthy delays in the estate administration process. And, as mentioned, the inability to make decisions to protect estate assets can be detrimental, reducing the amount left for loved ones.  

Summary

Be in control of your final arrangements – there is no greater gift that you could give your family. Get your will done and use legal professionals to do it. If you need a referral to a lawyer or an online will platform, contact us and we’d be happy to assist you.   

The above is for informational purposes only. It is not intended to be legal or financial advice. We accept no liability for any losses arising from use of the above information. We recommend you speak to your lawyer to obtain specific advice or guidance regarding your unique situation.