|
Wills
and Estate Planning Tutorial
Last
Will and Testament
A Last
Will and Testament is a document which sets out
your wishes concerning the handling and distribution
of your estate following your death. It appoints
an executor (male) or executrix (female) and/or
guardians to your minor children and outlines
the distribution of your assets, specific gifts
or donations. (A living will addresses end-of-life
medical treatment but does not address the handling
of your estate or assets or guardianship of your
children.)
Everyone
Needs A Will
Dying
Intestate: When a person dies without a valid
will or if a valid will cannot be located, it
is called dying intestate. Every province and state has
statutory rules governing who gets what if this
should happen.
Common
Misconceptions about Dying Intestate: You
may falsely assume that if you are married and
have children all your assets will automatically
go to your wife when you die intestate. This is
not the case. Most provinces and states have what is called
a preferential share, an amount that your spouse
is entitled to by law before any assets are distributed
to your children. In Manitoba for example, the preferential
share is $50,000. If you die intestate and your
estate is worth more than $50,000, your spouse
would receive $50,000 and one-half of the remainder
of the estate. The rest would be divided equally
among and go directly to your children. Some provinces
do have laws that protect a spouse's interest
in the family home or the estate even if someone
dies intestate. In Manitoba, the Homestead Act
does protect a surviving spouse's interest in
the family home.
You
may also assume that your common-law spouse will
automatically receive your property if you die
without a will. Many people believe that because
Revenue Canada and the Internal Revenue Service treat common-law spouses the same
as married spouses for tax purposes that common-law
spouses are treated the same as married spouses
under all legislation. This is not true. Common-law
spouses do not receive automatic rights to property
under intestate law.
If
you are in a same-sex relationship, none of the
current intestate laws help. To ensure that assets
or property go to your partner, you must formalize
an estate plan through a will, contract, trust,
life insurance or jointly-owned property.
If
you haven't appointed an executor or executrix
to administer your estate, the government will
step in and appoint an administrator. This takes
time and will delay any decisions regarding your
assets or business. It may also take longer for
your estate to be distributed to your beneficiaries
and there may be higher costs of administering
your estate, legal fees and additional income
taxes payable in this situation.
If
a will does not distribute some portion of an
estate, the distribution of that part is handled
according to provincial or state intestacy rules.
Guardianship
of Minor Children: A will gives parents of
minor children a chance to nominate a guardian.
The court makes the final decision when appointing
a guardian for your children after your death,
but the court will usually accept your nomination.
Why
take a chance? The only way to make sure your
children are protected and your estate is distributed
according to your wishes is to always have a valid
and current Last Will and Testament.
 Last
Will and Testament
Living
Will
Estate
Planning
LeanLegal
will be providing a detailed tutorial on estate
planning, the rationale behind establishing trusts
and other related matters in the near future.
We would like to provide our readers with a form
which will assist them in documenting their estate,
which is the first step in formal estate planning.
Please print and complete the following form and
keep it in a safe place.
We
always like to hear from you. If you have any
specific requests regarding estate planning, trusts
or related matters, please let us know at forms@leanlegal.com
Download
the Estate Planning guide here (183kb rtf)
TOP
|
