Importance of having a Will

by Jeffery A. Keill, CFP, CIM, FMA, FCSI, Portfolio Manager and Senior Wealth Manager Keill and Associates- Advisory Team

Introduction

Have you considered making a Will for yourself but have yet to take the necessary steps? Unfortunately, you are not alone. Many people have considered the need to draft a Will for themselves, yet a great number of Canadians seem to put off this activity for many reasons. Many people finally put their wishes in writing when the shock of their own mortality becomes evident. This can happen as we age, when a loved one passes, or we experience a near-death experience, such as sickness or an accident. Our advice: Don’t wait till this happens.

A Will is a vital legal document directing an individual’s wishes regarding the payment of debts, the sale and distribution of financials and real estate, distribution of their personal valuables, and the care of dependents after their death. In Ontario, having a Will is essential for ensuring personal wishes are respected, minimizing potential conflicts among heirs, and facilitating the smooth administration of one’s estate. This Discussion Paper will cover the key reasons that having a Will is important for the residents of Ontario (and most other common-law provinces in Canada).

Legal Clarity and control

Asset Distribution

A Will allows individuals to specify how their assets- such as real estate, bank accounts, investments, and personal belongings- should be distributed after their passing. Without a Will, Ontario’s intestacy laws govern asset distribution, which may not align with the deceased’s wishes. In other words, who you want to distribute wealth to will, likely not happen. This lack of planning and forethought can lead to unwanted outcomes, such as assets being allocated to relatives who may not have been the intended beneficiaries, or to those beneficiaries to whom the directed inheritance can cause other hardship.

Guardianship of Dependents

For those with minor children or dependents, a Will is crucial in appointing guardians. This ensures that individuals can choose trusted caregivers to raise their children in the event of death, rather than leaving such decisions to the courts. Courts will not necessarily conform to what you may have wanted nor will the courts understand some of the nuances of your family history.

Avoiding Family Disputes

A well-drafted Will reduces ambiguity and potential disputes among family members regarding asset distribution. Even the most loving families have been broken apart when death and inheritance comes in play. It is not always based on greed, but often based on an unclear desire of the deceased, between two or more surviving parties. When there are clear instructions, it minimizes the likelihood of disagreements and legal battles, which can be emotionally and financially draining for all involved.

Streamlining the Probate Process

The Application for Appointment of an Estate Trustee with a Will is commonly referred to as applying for Probate. The probate process and the success appointment validates a Will and oversees the distribution of an estate; it can be lengthy and complex. However, having a clear and legally valid Will can expedite this process, making it easier and less burdensome for families and executors. It provides clear directions for the executor, thereby facilitating quicker asset distribution and reducing administrative complexities (and therefore costs).

Tax Considerations

Although a Will on its own is not an Estate Plan, it is a vital document in the execution of the Estate Plan. The Estate Plan and the corresponding Will allows individuals to consider tax implications associated with their estate. While the estate may be subject to taxes, proper estate planning can minimize tax liabilities and maximize the value of assets passed on to beneficiaries. Consulting with a member of our Wealth Advisor Team or your lawyer can help you make informed decisions.

Protecting Business Interests

For business owners, having a Will is crucial to ensure continuity of the business after one’s death. A Will can outline the succession plan for the business, designating who will take over and how the business will be managed, thus safeguarding the interests of employees and stakeholders.

Emotional Peace of Mind

Regardless of your age or level of wealth, there is peace of mind knowing that one’s affairs are in order and that their wishes will be honored. Knowing there is an Estate Plan and properly drafted Will in place alleviates the emotional burden on loved ones during a challenging time and fosters a sense of security regarding the future.

Conclusion

In summary, having a Will is of paramount importance for Canadians and residents of Ontario. It provides legal clarity, ensures the distribution of assets according to personal wishes, and protects dependents. A properly drafted Will can prevent family disputes, streamline the probate process, and address tax considerations. Ultimately, it offers emotional peace of mind, making it a critical component of effective Estate Planning. Everyone is encouraged to consult our Wealth Advisory to begin the process of constructing an Estate Plan and having a Will completed that reflects their unique circumstances and wishes. Although we do not prepare Wills for clients, we will work with you and your family to help draft a strategy to meet your needs regardless if you already have a lawyer, or would like to be referred to one of our highly skilled strategic partners.

Disclaimer and Notice to Reader: This Discussion Paper should not be construed as legal or tax advice but rather only as a general statement and explanation of the topic matter. Professional tax and legal advice should be obtained for the readers own personal situation. For more information on this topic or how it applies to your family, please contact our Wealth Advisory team.

Last Edit Feb 11, 2025