Life can get really hectic when we have young kids, and one task that may slip down the priority list is drafting your last will and testament. However, as parents of dependent children or adult kids who require specialized care, having a will is one of the most important things you can do.
Having a legal will in place will help ensure that your kids and their financial future are looked after according to your wishes if you and the other parent were to die suddenly. It’s not something you want your bereaved family members or the courts to sort out.
These are the top questions that all parents (both biological and otherwise) need to consider when contemplating their wills:
- Who will care for your kids?
For anyone with dependent children, it’s important to select a guardian who can care for them in the event of your death if there is no other parent to look after them. This person (or persons) should be someone whom you have carefully considered for the role and who has agreed to take on this responsibility.
If you have children under the age of 18 and you die without a will, here’s what happens in Ontario. The province will first attempt to appoint a suitable family member to act as guardian, but failing that, the children may be put into the care of the Children’s Aid Society in hopes that a guardian can be found. They could wind up being moved around between various homes until a more permanent solution is in place. Further, without a will, your assets may be frozen or inaccessible while your estate is being sorted out, leaving others to support your dependents.
- How are assets disbursed?
When you have a legal will, your assets are typically distributed according to your wishes. The person you named as trustee or executor will be in charge of ensuring that your debts are paid and that your assets go to the beneficiaries named. Within your will, you have a lot of room to make sure your kids are cared for – even into young adulthood. For example, you can put your assets in a trust fund until they are a more mature age to manage it, or you can request that their education savings are administered in a particular way. Be sure to consult with your financial planner and/or estate lawyer before finalizing your will to make sure you have covered your bases carefully in providing for your children.
When there is no will in place, things naturally get complicated. The management of your estate no matter how small or large will be assigned by the courts to your closest relative, which may be a spouse, parent, sibling, cousin etc. Just stop and ask yourself if there’s someone in your family whom you don’t want in charge of your money…most people can think of a few! If there is no family available, a legally appointed trustee will disperse your assets according to the law, which will allocate it to your legal spouse (if alive) and biological children.
- How does it work if there’s a blended family or a couple has split up?
In Canadian society, there are all sorts of families beyond the ‘nuclear’ family of 2 parents and their biological or legally adopted kids. However, in the eyes of the law, there are several grey areas where asset distribution for your loved ones may fall short without a will in place. For example, if you are separated and now have a common-law spouse, your ‘ex’ or estranged spouse may still be considered your beneficiary if you don’t have a current will to state otherwise. You may also have step-children who you want to provide for, but without a will, they may be omitted from having access to your estate.
As you can imagine, not having a will (or having an outdated one that doesn’t reflect your current situation), can wreak havoc on your loved ones in the event of an unexpected death. The administrative and financial hassles alone are very trying, not to mention the emotional ordeal of making sure the kids are well cared for. When you have children, one of the best things you can do is to look out for them even after your death by drafting up your will. You can have a say in how they are cared for, by whom, while assigning your hard-earned assets to support them.
At Ares Law, it’s our job to help ease your mind when it comes to preparing your last will and testament. Estate planning is our speciality, so be sure to connect with our legal team today by calling our Parry Sound office at (705) 746-6444. Let’s get started, we’re here to help ease your mind.
