Although we try to pre-plan as much as possible in life, it’s easy to miss a few things here and there so, to help you cover all the bases, these are a few key areas you’ll want to take a look at.

Plan early and regularly update your will

It’s important to start planning your will and estate well in advance. But don’t just set it and forget it. A will need to be updated every few years or when big changes occur in the family in order to keep the information relevant.

If you’re not already aware there are numerous factors that can affect the nature of your will and you’ll want to make sure you have a contingency plan in place in case…

• someone who is named in your will or is the appointed executor of your will passes away.
• any asset of yours is sold.
• you get divorced or remarry someone.
• your children are now 18 years+ of age or if you have any new children/grandchildren you want to add to the will.
• you purchase a large asset.

Any of these factors and more can affect the timeliness of your beneficiaries receiving their inheritances. It’s critical to keep this information up to date in order to keep the probate process at bay. Also, be sure to be as clear as possible when naming people in your will. Any unclarities will again slow down the probate process for your beneficiaries.

Also, keep in mind these 2 important points…

1. Liquid assets are easier and quicker to manage with inheritances

When you are creating your will and planning your estate, it’s important to remember the value of your liquid assets. If you are likely to owe anything on your estate upon passing, the debt must be paid before any of the estate assets are distributed to your beneficiaries. If you don’t realize that you don’t have enough in liquid assets to cover the debt, it creates more work for your executor. If there is sufficient debt, the executor of your will might have to sell non-liquid assets to cover the debt – assets you may not have intended to be sold at all.

It’s also important to note that there are specific types of assets that don’t have to go through the probate process. These assets provide your beneficiaries with immediate access to the funds you leave behind for them. This is especially important if your family is dependant on the money you leave behind in order to pay bills. If that is the case, you’ll want to have non-probate liquid assets such as life insurance for example as part of your assets left to your beneficiaries.

2. Work with a will and estate planning professional

Will and estate planning shouldn’t be a DIY project. It’s extremely vital to work with someone who effectively knows how to plan a will and estate. If you want to feel 100% confident that your beneficiaries will receive their inheritance in a timely manner, work with our team at Ares Law. We are experts in will and estate planning and we know how to formulate a will and plan your estate so there are limited delays in the inheritance process. We also recommend you meet with your financial advisors and any other advisors you depend on for advice when making major decisions such as this. Don’t leave your family with the stress of settling your estate, call us today at (705) 645–8743 to set a up meeting so we can review your current plan and make sure you have all your bases covered.

The post Making the Inheritance Process Easier for your Beneficiaries appeared first on Ares Law.

1. Your estate distribution

Your estate consists of all your assets (including property, business assets, money, investments, vehicles, jewelry, heirlooms, furnishings etc.) as well as your debts. If you have a life insurance policy, that money is counted in your estate as well. Talk to your family about your vision to distribute your assets and ask for their input or suggestions if you feel you need it. Remember, your assets are your assets, and you can bequeath whatever you want to whomever you want, in amounts that are your choosing. You don’t have to disclose the monetary value of anything at this time if you aren’t comfortable, but do discuss at least the basics about your estate so there are no unwelcome surprises for them such as the fact that you’re leaving your money to charity, you have a massive debt load or you have very complicated finances that they’ll need to hire an accountant for.

• Your will executor

It’s important to name a will executor to manage your estate after you pass and to make sure your last wishes are followed and your assets are distributed accordingly. This person doesn’t have to be a family member – but it does need to be someone who is organized and capable of managing this important job. Before appointing anyone, be sure to ask them if they are OK with the responsibility. Talk to your family about this and who you want to select (or who you’ve selected); there may be some questions and concerns that they will bring up that you need to be prepared for. They may also have some helpful insights, so be sure to have a lengthy, open-minded conversation about this important topic.

• Power of Attorney

Most people choose their spouse to act as their ‘attorney’ in the event that they fall ill or become incapable of making decisions about their care (including end-of-life care), health or finances. This is called ‘power of attorney’. If you don’t have a spouse, or you don’t wish to name them, you can choose your child(ren) or other close family member or friend. Again, just as you would in choosing an executor, it’s important to ask first if they are interested in this responsibility and if they understand what’s involved.

• What’s most fair?

This is a difficult question, and very subjective. The issue of ‘fairness’ comes up a lot when talking about wills and estates. Some people will distribute their assets equally between all children (and/or grandkids and other loved ones), even if some are more financially well off than others, or if some don’t pitch in and help out in the family or make efforts to call, visit and so on. This can cause all kinds of resentment, which is why it’s important to have a discussion sooner than later. Doing so will help manage expectations, and give everyone an opportunity to air any concerns and suggestions. Your family is the most precious asset, so be sure to remind everyone that your goal is to leave a legacy of love first and foremost.

If your family isn’t up for a discussion or they aren’t on board with your decisions after you’ve had a conversation with them don’t forget that it’s still your right to create a will that reflects your personal wishes. Here at Ares Law, we specialize in wills and estates, and it’s our job to give you sound, legal advice. We’ll help you every step of the way so that you feel confident about your choices. Be sure to connect with our experienced legal team; we’ll make sure your final rights and wishes are documented and protected. Call us today at (705) 645–8743.

The post How to Talk About Estate Planning with Your Family appeared first on Ares Law.

Make sure everyone’s onboard

This may come as a surprise, but there’s a chance your kids or grandkids won’t be interested in the family cottage. If it’s too long a drive, if it needs a lot of work, or if they just aren’t able to manage the bills or the upkeep it’s better you learn now than after taking steps to sign it over to them. The best advice is to hold a family meeting and find out who’s in and who’s not and discuss options for the cottage succession and your estate plan. You may find that instead of passing it down to them, you’ll rent it out or put it on the market.

The taxman cometh

There’s no avoiding paying capital gains taxes in Canada when you transfer or sell an asset such as a second (or subsequent) property unless it’s decreased in value since you bought it. When it’s transferred, the government views it as being sold at ‘fair market value’, and you’ll have to pay capital gains taxes. For example, if you and your spouse bought your cottage for $300,000, didn’t put much work into it, and it’s now worth $800,000, that’s a capital gain of $500,000, of which you will be taxed approximately $130,000 – $150,000, depending on your income and other tax considerations. That’s a lot of money to pay for a gift you want to give someone!

If you don’t transfer ownership and keep the cottage in your name, your children will still be on the hook to pay the capital gains tax when you pass away.

Knowing your options

If you know you want to transfer ownership of the cottage sooner than later, there are a few options for you to ponder:

One is that you work out a payment plan with your children to help pay down the cost of the capital gains taxes. Another is to make the cottage your principal residence, which means you’d be eligible for the principal residence exemption, but be sure you understand the implication and reporting processes if taking this step. A third option is to consider the benefits of the ‘capital gains reserve’, which essentially allows Canadians to stretch out their reporting of the capital gain for up to five years, but only if the cottage is reported as being sold and not gifted (or transferred). In other words, you would not have to pay the full tax amount at once, and it would be more manageable to pay over a longer period. All of these options naturally have strict tax rules and legal implications, so be sure to work closely with your real estate lawyer and/or accountant before making your decision.

Finally, whatever your decisions about your beloved cottage make sure you have a legal will. Don’t let your hard-earned and cherished assets like a family cottage go into the wrong hands, or get tied up in legal battles. Have that family discussion, research your options from a financial, legal and personal standpoint, then make a plan of action and put it in your will. The best way to tackle your cottage succession plan is to work with a legal team that specializes in real estate law. At Ares Law, we’re here to help you every step of the way; make an appointment by calling (705) 645–8743 and let’s get started.

The post Keep It in the Family: Transferring Ownership of your Muskoka Cottage appeared first on Ares Law.

We all have items on our to-do list that are less than exciting, such as getting the furnace inspected, winter tires put on, or that overdue visit to the dentist. When we neglect these things, they can become larger time-consuming and costly headaches down the road. Not having an estate plan is very much the same. You want to know that your rights and wishes are followed and your assets are protected if the unthinkable were to happen. Let’s look at why you need a will and what’s involved in the process:

If you already have a will but it was drafted up a long time ago

If you drafted up your will some time ago, but things have changed within your personal, financial or family life, then you need to re-visit it and update it. For example, your trustee and/or a beneficiary or two named in your will may have passed away or become estranged, so a new will is needed in those instances. Any new additions to your family (especially children or a new spouse) will need to be included in your will as well. Don’t forget too that you may have accumulated or lost assets since the last time your will was drafted, so accounting for those would be a wise move. The bottom line is to update your will after any major life changes.

What happens if you die without a will?

When you die without a will in Ontario, things become complicated. The division of your estate falls under Ontario’s Succession Law Reform Act which has very specific rules. For example, if you are legally married, the first $200,000 of your estate (after all taxes, debts, fees, etc. have been paid) will go to your spouse (unless a dependent makes a claim). After that amount, the remaining estate is shared between the spouse and dependants. There are several other rules that can cause confusion and difficulty for families, such as in cases where there is a common-law spouse who would inherit nothing under this Act. The process for the courts to assign an executor for your estate and to distribute your assets can be time-consuming, costly and an overall harrowing experience for your loved ones.

What’s involved with getting a will?

Getting a will drafted is surprisingly simple. Book an appointment with a reputable law firm that specializes in wills and estates. They will thoroughly explain the process which includes how to go about choosing an executor, trustee, and/or guardian for your children. They will also tell you about Living Wills and Power of Attorney and how to outline your wishes for your care if you become ill, disabled, or become unable to communicate your wishes regarding your treatment. From there, you can take some time to make those decisions carefully, then come back to get it legally drafted, witnessed and signed. File your will somewhere safe, and tell your executor where you keep it.

Make this year the year that you finally get your will drafted or updated. Planning your estate is an essential step to properly protect your family and your hard-earned assets and to make sure that your wishes will be fulfilled upon your passing. Here at Ares Law, our experienced legal team specializes in working with families in Muskoka to plan their estate. Connect with us today at (705) 645-8743 to see how we can help…and best wishes for a happy, healthy new year!

The post The Number 1 New Year’s Resolution to Make In 2020: A Will appeared first on Ares Law.

Marital status and the law

Are you currently married, living common-law, separated or divorced? These different marital statuses matter more than you may think. With regards to your estate when you pass away, it can have a significant impact that may, or may not, benefit your loved ones.

• Married

As soon as someone is legally married, it instantly revokes or cancels their current will; it’s as if it never existed. A new will should be drawn up whenever someone marries. If there is no will, the current, legal spouse is entitled to the estate. However, there are instances where a previous spouse can claim support or maintenance either with or without a will (also called ‘dying intestate’).

• Divorced

In Ontario, your will isn’t canceled or revoked when you get divorced. However, any mentions or references in your will to your now ‘ex-spouse’ will be removed and they will not have access to your assets or estate. Further, if they were previously named executor or trustee, this too will be withdrawn. Everything else outlined in your will remains the same.  

• Separated

If you’ve been separated from your legal spouse for 10 days or 10 years, it still does not impact your will if you haven’t updated it since the separation. The courts still consider you legally married, and as a result, your spouse is entitled to your estate unless otherwise stated in your will, even if you now live with someone else.

Don’t have a will?

There are a couple of different scenarios if you pass without a will. An executor will be appointed by the courts to help manage your estate distribution, and in some cases, a trustee will be assigned as well. Dying intestate is naturally a complicated, time-consuming, legal affair, which can also be quite costly and eat away at your estate in legal and other fees. Here’s what can happen:

1. If you’re divorced (or never married) and have a common-law spouse

Here is a surprising legal fact for many: A common-law partner has NO legal claim to your estate if there is no will, plain and simple. While they may seek support for dependant children or themselves, they won’t inherit your estate the same way as a legal spouse would. Another Ontario law to be aware of is that if your common-law partner is not on the title or deed to the property you shared, they can be legally locked out and the home will be considered one of your estate assets to be distributed, even in cases where the common-law partner contributed regularly to payments and upkeep of the home.

• If you are separated but have a new common-law spouse

If you have a current common-law spouse but did not obtain a divorce from a previous marriage, your ex-spouse can claim your estate. Some people think this is not the case if they filed a legal separation, but in the eyes of the law, you remain legally married and your legal spouse has the rights to your estate if you don’t have an updated will to reflect otherwise. There’s no denying that your marital status matters when it comes to your estate. That’s why it’s imperative to have your last will and testament drafted immediately whenever your marital status changes. Otherwise, your estate can go into the hands of the wrong people, and/or get tied up in a lengthy legal battle. Protect your loved ones and ensure your hard-earned assets go to the people you intend them to go to. The solution is simple; come and see us to draft up your will! It’s easier than you may think, and well worth the effort. At Ares Law, we’re wills and estates specialists and it’s our job to walk you through the process and let you know your options. Connect with us today by calling 705-645-8743; we look forward to meeting you!

The post Your Marital Status & Your Will: What You Need to Know appeared first on Ares Law.

You can appoint the same person to be both your executor and trustee, but be sure both you and they understand the different roles. Direct family members or close friends are often chosen to be executors, but if you are selecting a different person to be your estate trustee, it is not uncommon to choose a finance or legal professional.

Let’s look at the top-recommended traits for an executor or trustee so you can make an informed decision and choose the best person for the job. This is an important, legal role with hefty responsibilities and time commitments, so you need to be sure.

Tops traits needed in an estate trustee or executor:

1. Trust

Naturally, you want to select someone who is trustworthy, has integrity, and who will make strong, impartial decisions not based on emotions or intimidation.

• Able to handle the pressure

The person who does best in this role should be organized, calm under pressure and able to deal with any problems or conflicts that arise. If an executor makes a mistake when administrating the estate that results in a loss for the beneficiaries, they could be held liable for these losses. It’s important to note that when a will is carefully drafted and the deceased’s assets/finances are well-organized, the process is more likely to run smoothly.

• Time

At least for a short time, the job of the executor can be demanding. They may need to have visits and/or calls with the deceased’s family members and other beneficiaries, and likely need to spend time working with funeral homes, lawyers, bank or investment advisors, accountants, the courts and so on. If they live out of town and need to make several trips to finalize the estate or manage your home/property sale, that can also add extra pressure and expense for them.

• Health

When choosing your executor or trustee, don’t forget to take their age, health and overall ability to manage this job into account. For example, some people want to choose their parents as their executors, but forget to consider their lifespan or future physical/cognitive abilities when making that choice.

Finally, when you ask someone to become your executor and/or trustee, be sure to explain what the job entails. They may in fact, say ‘no’ if they don’t feel they have the time, ability or commitment. You can then go on to ask another trusted person, or you can hire a corporate executor or law office to manage this important job.

To help make your decision easier, connect with us. We specialize in helping Muskoka families with planning and executing their wills and estates. Call today to make an appointment at 705-645-8743. We’ll walk you through every step of the process so that you are clear and confident about your will and your choice in choosing someone to manage your estate.

The post How to Choose an Executor for Your Estate appeared first on Ares Law.

As parents, we don’t like to think about what would happen to our young adult or dependent children if we were to die unexpectedly. While it may feel like a scary scenario, it’s important to plan for those “what if” events and protect our loved ones as well as our hard-earned assets. Although it won’t ease the grief or sadness, having a will in place helps survivors to better manage such a difficult time and helps avoid lengthy, costly legal and administrative delays. Let’s learn more about what happens to your children and your estate if you were to die without a will.

Guardianship for your children

If you have children under the age of 18 or who require special care as dependent adults, you’ll need to appoint a guardian for them in your will. Without a will or named guardian, the courts will look first to a family member who can care for your kids (such as grandparents, siblings, etc.), or they could possibly wind up in the care of the Children’s Aid Society until a suitable guardian is appointed.

When choosing a guardian for your dependent children, it’s important to talk to the parties involved to ensure this is something they are willing and able to do. Ideally, you’ll want to pick someone your kids enjoy, and whose parenting styles and values you share.

What happens to your assets?

When you pass away, your assets including your home, vehicle(s), investments, money, debt and so on become your ‘estate’. If you have a will in place and have appointed an executor or trustee to manage your estate, then they will be tasked with ensuring that everything is dispersed or bequeathed as you have outlined while adhering to provincial and tax laws. Within your will, you can outline not only how much money or which assets each child is given, but you can also make arrangements for their trust funds, education savings, and so on.

Without a will however, your estate management is put into the hands of “your closest relative” or, failing that, a court-appointed trustee who will divide your assets according to provincial law. There is a rather standard formula for dispersing an estate in Ontario: The first $200,000 plus one third goes to your spouse, and the remainder is split equally among your children. If there is no spouse or children, the estate is distributed to other relatives. In other words, it may result in your children getting less of your estate or that it ends up in the hands of people you never wanted to have access to it.

What happens with a separation, divorce or blended families?

Ontario law doesn’t currently acknowledge separated or common-law relationships when it comes to estate distribution. This means that if you are separated and/or living common-law and you die without a will (or without updating your will), your current life partner may be left out while an estranged, surviving legal spouse could be named as a beneficiary. With all family types including blended families, step-children, foster children and so on, it’s important to have a will drafted that very clearly defines your wishes for all included.

While most people may think that preparing a will and planning your estate isn’t exactly an enjoyable way to spend a few hours, we can all agree that dying without a will in place can have a devastating impact on your children and loved ones. Not only might your children’s care be compromised, but your entire estate could end up being tied up (and eaten up) in the courts for months or years. If you don’t have a will or you haven’t updated yours since experiencing a major life change (such as a break-up, marriage or having children), now is the time to get one drafted. You can rest easy knowing your wishes will be carried out and that you have done careful planning to protect your loved ones and your assets. At Ares Law, our legal team specializes in working with families in Muskoka to plan their estates and draft or update their wills. Make an appointment with us today by calling (705) 645-8743 to see how we can help.

The post What Happens to Your Children When You Die Without A Will? appeared first on Ares Law.

A Last Will and Testament provides a chance for individuals to express and record what they want to happen when they pass. However, depending on the circumstances, a will might not always accurately reflect these wishes. The improper execution of the will may also mean that a loved one’s wishes are not realized. If this is the case, it may be necessary to challenge or contest a will.

Common Reasons for Challenging a Will

Although there can be many reasons for challenging a will, the most common reasons include:

Legal Issues

If there are problems with someone’s will, it may need to be challenged. Do-it-yourself wills, for example, are legal but may have inherent problems, such as incomplete sections, or lack the legal validity needed. If you expect a will is fraudulent, it may be necessary to challenge it.

Undue Influence

If your loved one was unduly influenced by someone else, that is another valid reason to challenge or contest the current version of their will. Undue influence basically means that someone felt a great deal of pressure to change or modify their will to appease someone else.  If a will changes dramatically, it may be the result of undue influence by another family member or someone who was close to the deceased. In this situation, you may want to consider contesting the current will.

Mental Capacity

Finally, a person’s mental capacity at the time of writing their will may also affect its validity and whether it really reflects the final wishes of the individual. If the person did not understand what they were signing, or the stipulations included, it may, again, be necessary to challenge this version.

How Do I Challenge a Will?

If you feel that it is necessary to challenge a Last Will and Testament, consulting with a lawyer specializing in estate law should be your first step. In Ontario, there are limited instances in which a will may actually be revoked. However, there are a few circumstances in which this may happen, such as if the will was not properly signed or witnessed, or the deceased was married again after the will was created. It’s important to note that if someone feels that a will is unfair, or doesn’t recognize an important family member, that is not grounds on its own to contest it – there has to be a legal issue in order for a judge to look at it.

Working with an estate lawyer to create your will helps to ensure that your last wishes are carried out after you pass. It will also likely help your loved ones avoid the need to contest your will. At Ares Law, our team specializes in estate law and can help you create a legal and valid will. We can also help you review your current will and make any necessary changes to ensure it is up-to-date and reflective of your final wishes. Connect with us at (705) 645–8743 so we can get started.

The post Why Would I Need to Challenge A Will? appeared first on Ares Law.

Although not the most pleasant topic to consider and discuss, having a will in place is a very important step you can take to ensure that your family and assets are protected if something were to happen and ensures that your wishes are carried out.

Where there’s a will….

When someone dies and there is a legal and valid will in place, the wishes expressed in the will are, for the most part, followed – usually after any debts and funeral costs have been covered. There are some exceptions, however. If a person is married or divorced after the will has been created and has not updated it, the will essentially becomes null and void. As such, it’s important to update your will after any major life event or change.

What happens when there is no will in place is a different story. Without a will in Ontario, the division of your estate falls to Ontario’s  Succession Law Reform Act. This Act specifies certain rules for your beneficiaries. According to the Act, if the deceased person was married, the first $200, 000 will go to their spouse, unless a dependent makes a claim. Beyond that amount, the remaining estate is shared between the spouse and dependants according to the rules and stipulations set out in the Act.

What should your will cover?

Convinced a will is a good idea? You may now be wondering what exactly you need to include within your will. A lawyer specializing in estate planning can help you figure out what you’ll need to include and the best way to make sure your family is taken care of if the unthinkable were to happen. There are certainly some basics that you will need to cover. If you are a parent of younger children for example, you’ll want to set out in your will who should become the legal guardian of your children if both you and the child’s other parent dies. Outlining what happens to your assets and possessions is also an essential part of the process, and finally, you’ll want to appoint an executor for your will.

A ‘living will’ or Power of Attorney for Personal Care is another consideration. Essentially, a living will outlines your wishes for care in the event you become ill and are not able to communicate how and even if you would like treatment to happen.

Should I DIY my will?

Another common question is whether DIY will kits will suffice when it comes to planning your estate and creating your legal will. Although DIY kits are often less expensive than working with a lawyer, and may indeed work in some cases, it’s important to note that these kits really are do-it-yourself. This means that if you choose to go with this option, you will won’t have the advice of a lawyer who specializes in estate planning. It’s also likely that you won’t be familiar with the legal jargon and the provincial rules and regulations in place, which can be problematic and may impact your ability to create a valid, legally binding last will and testament.

Preparing and creating your will and planning your estate is an important step to take to prepare for the unforeseen; you want to feel confident that your rights and wishes are followed and protected if the unthinkable were to happen. At Ares Law, our legal team specializes in working with families in Muskoka to plan for the future and plan their estate. Connect with us today at (705) 645-8743 to see how we can help.

The post Estate Planning 101 – Do I Really Need a Will? appeared first on Ares Law.

1.)   You can DIY

You may or may not know that you can actually create your own will by using a do-it-yourself will kit. If used correctly, the will you create is legally binding. However, it’s important to keep in mind that you won’t have the benefit of working with and consulting a lawyer during this process & it can be complicated if you’re not familiar with the terminology.

2.)   Most Canadians don’t have a will

A surprising statistic about wills and estate planning in Canada – a large percentage of Canadians do not have a legal will in place. In fact, recent stats show that approximately 48% of Canadians do not currently have a will.

3.)   You should update your will after a major life event

Recently married or divorced? You may be surprised to learn that any will you had in place prior to these events is not valid after your marital status changes.

4.)   You need to choose a will executor

When you create a will, you need to choose an executor. An executor has a range of duties and responsibilities, including arranging the funeral, paying any debts that the deceased owes, appraising assets and distributing the deceased’s assets. As such, it’s important to choose the executor of your will very carefully.

 5.)   You need to keep copies of your will in a safe place

Copies of your last will and testament need to be kept in a safe place. It’s a good idea to keep one copy in a safety deposit box outside your home and another copy in a locked file cabinet or fire-proof safe in your home office.

6.)   You should review your will periodically

 Change is a fact of life. Changing relationships, family dynamics and financial situations means that it’s important to review and potentially change your will from time to time.

7.)   It’s a good idea to have a living will

 Having a Power of Attorney is important. Basically, a Power of Attorney allows you to select someone to make your decisions for you if something happens and you are no longer capable of making decisions or taking care of your affairs.

8.)   If you die without a will, the government will not take all your assets

It’s a common misconception that if you die without a will, referred to as intestate, the government will assume all your assets. This, however, is not the case, but it does get complicated and held up in the courts, with fees attached to this process.

9.) Ontario’s Succession Law Reform Act may dictate who inherits your assets

Dying without a will does involve government intervention, however. If you die intestate, Ontario’s Succession Law Reform Act will dictate who inherits your assets.

 10.)  Having a legal will help ensure your wishes are followed and protected

Overall, creating a legal will and planning your estate is an important way to ensure your rights and wishes are protected, as well as protecting and caring for your loved ones after you’re gone. Although wills are sometimes contested in court, it remains a much better safeguard than no will at all.

Are you still unsure where to start when it comes to planning your estate and creating a will? We can help. Our experienced legal team specializes in helping clients in the Muskoka area with estate planning and wills. Connect with Bernie Keating and the Ares Law team today at (705) 645-8743; we’re here for you.

The post The Top Ten Things You Should Know About Estate Planning and Your Will appeared first on Ares Law.