If you pass away without a valid will, known as dying intestate, Ontario's intestacy laws determine how your estate is distributed. Here are the key implications:
Default Distribution
Your estate will be distributed to your next of kin according to a predetermined hierarchy set by law. This hierarchy includes:
- Spouse and No Children: The spouse inherits the entire estate.
- Spouse and Children: The spouse receives a preferential share (up to $350,000 if the death occurred on or after March 1, 2021) and the remainder is divided between the spouse and the children.
- Children and No Spouse: The children inherit equal portions of the estate.
- No Spouse or Children: The estate goes to the parents, then to siblings, nieces and nephews, and finally to other next of kin or the Ontario government if there are no living relatives.
Delays and Costs
The absence of a will can lead to delays in settling your estate and increased legal costs. This includes the need for a court application for a Certificate of Appointment of Estate Trustee Without a Will, which can be time-consuming and costly.
No Guardian Appointed
Without a will, you cannot designate a guardian for your minor children. The court will appoint a guardian based on the best interests of the child, considering factors such as the relationship between potential guardians and the child, the ability to provide a suitable home environment, and financial resources.
Exclusion of Common-Law Partners
Common-law partners are not automatically entitled to inherit any part of the estate if there is no will. They must prove dependency to receive any support and are not recognized as a "spouse" under intestate succession rules.
Additional Considerations
- Funeral and Burial Arrangements: Without a will, the funeral and burial arrangements may not align with the deceased's wishes, as these decisions are made by the court-appointed trustee.
- Charitable Bequests: If there is no will, any charitable bequests or specific gifts to individuals will not be honored.
- Financial Support: Financial support for dependents, such as elderly parents or grandchildren, may be discontinued without a will, as the court-appointed trustee may not continue such support.
Creating a will ensures that your assets are distributed according to your wishes and provides protection and clarity for your loved ones.
We Can Help!
At ClearEstate, we help you write a last will and testament that is legally binding in Ontario without the need for a lawyer or notary. If you’re finding yourself in need of help or guidance in drafting your will, don't hesitate to discover our Online Will offering or book a free consultation with our estate planning specialists, today.