Probate, estate, executor, power of attorney – there’s quite a bit of jargon and ‘legalese’ involved when it comes to succession planning and writing your last will and testament. This, however, shouldn’t deter you from creating a will that clearly outlines your final wishes. To make the process of planning your estate a little easier, and to help give you the peace of mind knowing everything is looked after, here are a few terms you should be aware of and what they really mean:
1.Estate
What exactly is your ‘estate’? Although the term may conjure images of gated mansions, it basically refers to the property that you own or have legal interest in. Estate is also commonly used to refer to a person’s assets (monetary/investment assets as well as physical assets such as jewelry, vehicles, etc.) and unpaid loans or liabilities.
When the term ‘estate planning’ is used, it typically refers to the process of planning ahead and determining how your assets, including your property, will be distributed after your death.
2. Executor
Although you may have created your will outlining your final wishes and how you would like your assets to be distributed, you still need to appoint someone to make sure those wishes are followed. That person is referred to as your will executor. A will executor is responsible for managing and distributing the property and assets of the deceased person in accordance with the wishes outlined in their will.
3. Power of Attorney
In the event that something happens to you and you are no longer able to make decisions about your finances or health, the individual you identify as your ‘attorney’ will have the right to legally make these decisions on your behalf – keeping your best interests in mind. A power of attorney is the legal document that specifies who your attorney is. It can also outline what some of your specific wishes entail.
4. Probate
Probate is another term that you may encounter and it’s often one that causes the most confusion. Basically, probate is the court process of approving your will and appointing an official will executor. The probate process is not mandatory in Ontario, however many will executors choose to go through the probate process so that they are legally confirmed as the executor with a certificate of estate trustee with a will.
5. Intestate
What happens if you die without a will in Ontario? Dying without a will is officially known as dying intestate. If this is the case, Ontario’s Succession Law Reform Act comes in to play and will determine how a person’s assets are legally distributed between family members. As specified in this Act, the first $200, 000 – or half of the net family property – is typically given to the deceased person’s spouse. Anything above this amount is then shared between the spouse and the descendants according to rules also set out in the Act.
Still have questions about succession and estate planning? It can be quite confusing and a little complicated, which is why you should connect with our experienced legal team at Ares Law. We specialize in working with families in Bracebridge, Huntsville, Port Carling, Gravenhurst and the greater Muskoka area to ensure your final rights and wishes are documented and protected. Call us today at (705) 645–8743.
