Complimentary Consultation
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BAKER & BAKER
Family Lawyers
During your thirty minute complimentary consultation you will receive a free copy of the Ontario Divorce Handbook by Donald S. Baker, LL.B.
We ensure that all your questions are answered.
Will & Estate Planning
Baker & Baker understand the necessity to help you develop a plan that fully addresses your long-term financial needs. We have the legal know-how and financial expertise required to make certain all your desires are met.
Your Will and Marital Status
Will and estate planning is essential when your marital status changes. If you marry after signing a will, the will is automatically void, unless it is made in contemplation of the marriage. However, a divorce does not entirely revoke the will of a divorced couple, but it does void any designated asset to a spouse and the estate trustee appointment of a spouse. A marriage contract will take precedence over the statutory rules respecting a couple's wills and estate if those matters have been addressed by the contract.
What is a Will?
A will is a document that sets out your wishes and directions with respect to the disposal of property after death.
When you need a Will
· You have children.
· Wish to give money to a friend or charity.
· Own a home or business.
· Wish to pass along family possessions or heirlooms.
· You are married, single, separated, divorced or living
common law.
Intestacy (What can happen if you don't have a Will?)
It’s very simple. When you have a will, you decide how your wealth will be distributed. Without a will, the provincial government decides. A will can ensure your wealth is handed down in the most tax efficient way. When you die without a will, your intentions are replaced by the rules of intestate succession.
Mistaken belief
When you die, everything you own automatically passes to your spouse.
Fact
Without a will, provincial rules dictate how much and which of your assets your spouse is entitled to.
Mistaken belief
If you are living in common-law, your partner has a claim to your estate.
Fact
Despite having the same rights as a legal spouse in the tax department's eyes, a common-law spouse has limited rights under some provincial estate laws.
Mistaken belief
Your family can step in and decide who should take care of your children.
Fact
In the absence of a will, the courts determine who will raise your family. The court can be influenced based on the wishes of the family.
Keeping your will current
Once you’ve created a valid will, make sure you keep it up-to-date. Review and rewrite your Will whenever there is a major change in your circumstances. A divorce, getting remarried, having children, or launching a new business is just some of the major life events that necessitate a reworking of your Will.
To be safe, look over your will at least once a year. A regular review will ensure it continues to reflect your intentions.
Estate Planning
If you become incapacitated and unable to make decisions, legal authority is required. A Power of Attorney for Property authorizes a person to manage your personal possessions and finances if you become incapable of managing these arrangements. A will only covers your affairs once you pass away.
Power of Attorney for Property
A Power of Attorney document grants decision making authority over your assets or personal care to another person in the event that you are unable to manage your financial affairs should you become mentally incapacitated while you are still alive unless otherwise specified.
A power of attorney for property is a simple, inexpensive, and reliable way to arrange for someone to manage your finances if you become unable to do so yourself.
Your power of attorney automatically ends at your death. If your spouse is your power of attorney their authority is automatically terminated if you divorce. An estate trustee will be responsible for managing your personal affairs.
Power of Attorney for Personal Care ("Living Will")
A Power of Attorney for Personal care (also referred to as a "living Will") grants authority to another individual over decisions regarding health care, nutrition, shelter, clothing, hygiene and shelter if you are unable to make those decisions or care for yourself, usually due to illness or accidents.
Seven Important Planning Factors
Asset Distribution
Decide how your assets should be distributed between your beneficiares.
Estate Trustee
The estate trustee who ensure the instructions in your will are fulfilled. Choosing an executor is important, and considerable consideration should be applied to someone you trust and who is also professionally capable.
Care for Minor Children
You can identify a guardian for your minor children. However this clause is not legally binding, the courts will review the matter for the children's best interest.
Trusts
An inter vivos trust may be established during your lifetime to provide support for minor children or beneficiaries who require regular income or a post secondary education. If a trust may also be set to commence upon your death to help you protect your assets by providing a trustee who will manage them on behalf of your beneficiaries.
Life Interest
The income or enjoyment of an asset without giving the asset itself such as a cottage or a trust fund that generates income. A life interest clause protects the asset to ensure it will be there for future generations.
Death Benefits
To determine the death benefits that you may be entitled to receive upon the death of your loved one go to Canada Benefits page on dealing with death in Ontario, or the Service Canada page on Canada Pension Plan Death Benefits or contact Human Resources Development Canada (HRDC) at 1-800-277-9914.
Trusts
Trusts help you protect your assets by providing a trustee who will manage them on behalf of your beneficiaries. A trust may be established to carry out financial arrangements during your lifetime or upon your death.
Three reasons you should establish a Trust
Ensure your wishes are carried out The terms of a will can be challenged. Any child of the deceased can ask the court to rewrite the will if the child is not satisfied with its provisions. The courts then decide if the deceased has fulfilled his or her moral obligation to the child.
More powerful legal instrument than an ordinary Will It will allow you to better control who will inherit your assets and how they will inherit them.
Enhance an estate’s tax positionCreating a trust often makes it possible to defer or reduce taxes to ensure that wealth is transferred to one’s heirs and beneficiaries in the most tax-efficient manner.
The Cost of Paying your Estate's Debts Any debts you have when you die have to be settled by your estate. While your executor can always sell assets to cover any amounts owing, this can be a costly choice.
Baker & Baker Will Planner
Our will planner addresses the necessary components, including a power of attorney for property and personal care, required to ensure your estate wishes are carried out.
Click here to download our will planner.
Four critical steps for proper preparation of your will entail the following:
Once you have completed your will planner and returned a copy to us we will ensure that the laws that govern property and dependent relief are applied. We provide the necessary assurance that your will is valid and all legal requirements have been met.
Signing and Witnessing your Will
Signing and witnessing is essential to the legitimacy of your will. You are required to sign your will with two witnesses in each other's presence. Beneficiaries or their spouses cannot be witnesses.
Safekeeping of Personal Records
Important personal records relating to your estate should be kept in a safe, organized place where they can be easily located for estate administration. They include:
Advise your lawyer, executor or bank as to the whereabouts of your will.