Becoming a parent flips life upside down in the best (and busiest) possible way. Between daycare drop-offs, meal prep, and trying to keep a tiny human alive, estate planning usually falls somewhere near the bottom of the to-do list.
But here’s the truth: if you’re a parent, estate planning isn’t something to “get to later.” It’s one of the most important steps you can take to protect your children and give your family long-term security, no matter your age or income level.
Here are some key reasons to start estate planning now:
Plan for your children’s care
If something happens to you and your children’s other parent, who will raise your child? Without a will, the courts will decide without your input. Ontario law doesn’t automatically give decision making responsibility to your parents, siblings, or even a specific side of the family. Without your guidance, your family members may disagree over who should care for your children.
A will allows you to appoint who you want to have decision making responsibility and/or guardianship of your minor children, and provide guidance on how you want your children to be raised.
Estate planning is not only about what happens if you die, you can also protect you and your loved ones while you are alive. If you become ill or injured, a Continuing Power of Attorney for Property will allow someone you trust to handle childcare expenses and manage your finances on your behalf.
Set up your children’s financial future
Without a will, your children will inherit according to Ontario’s intestacy law and will inherit your assets outright at age 18. If your children are younger than 18 and inherit more than $35,000, then their inheritance will be paid into court unless someone applies to be their guardian for property.
A proper estate plan can set up trusts for your children to decide at what age they receive funds, appoint a trusted person to manage the funds, and ensure the funds are used for your children’s education, housing and well-being.
Protect your partner
Under Ontario’s intestacy laws, if you have assets of $350,000 or less, then your whole estate goes to your spouse. If you have more than $350,000 in assets, then your spouse gets $350,000 and:
- one-half of what remains, if you have one child, with the other half going to that child; or
- one-third of what remains, if you have more than one child, with the remaining two-thirds being split equally among your children.
However, if you have a common law spouse, or other family arrangement, then they don’t automatically inherit from your estate and they would need to apply for support as a dependent, which our estate litigation lawyers can assist with, but it’s better to plan ahead to avoid the cost, delays and stress associated with going to court.
Upfront estate planning provides certainty and ensures your assets are distributed according to your intentions.
Avoid unnecessary costs, delays and stress
Dying without a will can lead to:
- higher legal costs for your loved ones;
- delays in accessing funds your children need;
- more complicated estate administration; and
- disputes between your family members.
A clear estate plan dramatically reduces the administrative and emotional burden on your loved ones during an already painful time.
Estate planning is one of the most meaningful gifts your can provide your family. It’s an act of love that secures your children’s future and provides you and your family certainty. To get started, talk to one of our estate planning lawyers.
At Mills & Mills LLP, our lawyers regularly help clients with a wide range of legal matters including business law, real estate law, estate law, employment law, health law, and tax law. For over 140 years, we have earned a reputation amongst our peers and clients for quality of service and breadth of knowledge. Contact us online or at (416) 863-0125. The material provided through the Mills & Mills LLP website is for general information purposes only. It is not intended to provide legal advice or opinions of any kind.
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