Estate Planning with Meghan Lemon, Barrister & Solicitor

Estate planning is vital in ensuring your assets are well-managed and directed to the beneficiaries of your choice. A comprehensive estate plan can give you the peace of mind of knowing that your loved ones will be provided for.

In Ontario, if you pass away intestate (without a will), depending on the nature of how your assets are held, your spouse may only be entitled to the first $350,000 of your estate with the remaining assets split equally between your spouse and children. If you do not have a spouse or children, your next of kin could inherit the estate. In many cases, this was not the deceased’s intention or wish.

An estate plan helps to articulate your thoughts and wishes on paper through proper planning and management of your assets available to your beneficiaries.

The great thing about estate planning is that it is a fluid process, so rest assured that your documents can be amended to effect any major life changes. With your goals and objectives in mind, your lawyer can play a vital role in working with you to draft a will and power of attorney documents to suit your circumstances.

Every estate plan requires a checklist and below is a list of important things to consider when drafting your checklist:

     • Your goals and objectives. This puts structure to your estate plan and this is where you give thought to whom you may want to leave your assets to. For example, you may want to provide for the well-being of a spouse, children, other family members, or a charity that is important to you. Guardianship of your children should also be a consideration.

     • A list of your assets. Your assets include your home, cottage, and any other real property that you own, your personal property, investments, insurance, pensions, shares, etc.

     • A list of your debts. This would include Mortgages, lines of credit, credit card debt, etc.

     • An outline of any possible conflicts or issues that could pose a concern. For example, disputes among estate trustees, family members, or even guardianship concerns.

     • Details of financial provisions regarding powers of attorney for property, as well as consideration for your health and treatment decisions in your powers of attorney for personal care.

There are also tax advantages to having a well-drafted estate plan. One mechanism for limiting your exposure to probate is having primary and secondary wills. The drafting lawyer would include all assets attracting probate in the primary will, and all assets that do not require probate in the secondary will. This could include private company shares, vehicles, personal effects, artwork, jewellery, and some property, etc.

This means that if probate is triggered, you can limit the taxation of probate to those assets held in the primary will, and exclude the assets in the secondary will. Probate tax in Ontario is currently set at 1.5% of the value of your estate, so depending on the value of the assets, there could be significant savings by drafting primary and secondary wills.

Please note that this information does not constitute legal advice or instruction. Please speak with a lawyer to discuss your individual Estate Planning needs.

 

If you would like to contact Meghan, she can be found at this link.

 

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