Your Quick Guide to Wills in Canada

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Your Quick Guide to Wills in Canada

Do you have a plan for your estate? Global News reported in April 2020 that 51% of Canadians do not have a will. But COVID-19 has prompted more people to make their wills. Having one is essential, but you must understand what it does and how it works. This quick guide to wills in Canada can help as you’re making your estate plan.

Why You Should Have a Will

Canadian law doesn’t require you to make a will, but it’s still a good idea to have one. Your will tells your family and legal authorities how to divide your estate after you’re gone. If you have children, a will should name a guardian to raise them. You can also set aside trust funds for your children, as well as any family pets.

Dying intestate means you don’t leave a valid will – and your province or territory laws govern your estate’s distribution. The first $50,000 usually goes to your surviving spouse. Investopedia adds that remaining assets get distributed between your spouse and children. If you have neither, your parents and siblings will receive your estate.

What Counts as an Asset

Your estate contains two key things: your assets and your liabilities. People typically think of physical assets like vehicles, jewelry, and antiques. Other assets include bank accounts, investments, and real estate. The scope of assets also encompasses computers, photographs, audio-visual equipment, musical instruments, and even furniture. Businesses you own, whether alone or as a partner, are also part of your estate. Canadian law considers animals as property, so you should leave your pets to someone you trust.

Don’t forget about intangible assets – patents, trademarks, and copyrighted materials. Digital assets include photos, music files, e-books, and documents as well as social media, email, online gaming, and blog accounts. CIBC explains that Canadian estate laws don’t address digital assets, but you should include them in your will. You’ll need to leave explicit instructions for their distribution. It’s also wise to create a separate inventory of all your accounts, including provider and login information. Be sure to check each provider’s terms of service before adding digital assets to your will.

What Makes a Will Valid

Your will must meet some basic criteria to be valid. Ontario-based Steps to Justice mentions that it must contain some key elements:

  • Your name
  • A date
  • Your signature
  • Signatures of two witnesses

Both witnesses have to watch you sign it. Meanwhile, one must sign an affidavit of execution stating that you signed the will in front of them. The COVID-19 pandemic has made it harder to have witnesses physically present. That’s why many provinces have passed emergency orders to allow virtual witnessing. Mondaq lists Quebec, Ontario, British Columbia, Alberta, and Saskatchewan. Check your province or territorial laws for guidelines. The Financial Consumer Agency of Canada has more information on wills in each province and territory.

How To Make a Will

There are three different ways you can create your will in Canada. Retire Happy mentions holographic wills, entirely handwritten by the person making the will. Alberta, Manitoba, New Brunswick, Newfoundland, Ontario, Quebec, and Saskatchewan honor these wills. A holographic will must do four important things:

  • List the testator’s full name
  • Declare that it is the “last will and testament”
  • Name an estate trustee
  • Spell out the person’s wishes

You can also look to online services if your estate is relatively simple. For more complex estates, experts recommend hiring a lawyer.

Smart Planning for Your Family’s Future

Your will probably isn’t the first thing on your mind every day, but it’s critical to your financial planning. Doing your homework is essential, but so is choosing trusted professionals and resources. These steps can help you compose a will that best meets your needs and those of your family.

Your Quick Guide to Wills in Canada

Do you have a plan for your estate? Global News reported in April 2020 that 51% of Canadians do not have a will. But COVID-19 has prompted more people to make their wills. Having one is essential, but you must understand what it does and how it works. This quick guide to wills in Canada can help as you’re making your estate plan.

Why You Should Have a Will

Canadian law doesn’t require you to make a will, but it’s still a good idea to have one. Your will tells your family and legal authorities how to divide your estate after you’re gone. If you have children, a will should name a guardian to raise them. You can also set aside trust funds for your children, as well as any family pets.

Dying intestate means you don’t leave a valid will – and your province or territory laws govern your estate’s distribution. The first $50,000 usually goes to your surviving spouse. Investopedia adds that remaining assets get distributed between your spouse and children. If you have neither, your parents and siblings will receive your estate.

What Counts as an Asset

Your estate contains two key things: your assets and your liabilities. People typically think of physical assets like vehicles, jewelry, and antiques. Other assets include bank accounts, investments, and real estate. The scope of assets also encompasses computers, photographs, audio-visual equipment, musical instruments, and even furniture. Businesses you own, whether alone or as a partner, are also part of your estate. Canadian law considers animals as property, so you should leave your pets to someone you trust.

Don’t forget about intangible assets – patents, trademarks, and copyrighted materials. Digital assets include photos, music files, e-books, and documents as well as social media, email, online gaming, and blog accounts. CIBC explains that Canadian estate laws don’t address digital assets, but you should include them in your will. You’ll need to leave explicit instructions for their distribution. It’s also wise to create a separate inventory of all your accounts, including provider and login information. Be sure to check each provider’s terms of service before adding digital assets to your will.

What Makes a Will Valid

Your will must meet some basic criteria to be valid. Ontario-based Steps to Justice mentions that it must contain some key elements:

  • Your name
  • A date
  • Your signature
  • Signatures of two witnesses

Both witnesses have to watch you sign it. Meanwhile, one must sign an affidavit of execution stating that you signed the will in front of them. The COVID-19 pandemic has made it harder to have witnesses physically present. That’s why many provinces have passed emergency orders to allow virtual witnessing. Mondaq lists Quebec, Ontario, British Columbia, Alberta, and Saskatchewan. Check your province or territorial laws for guidelines. The Financial Consumer Agency of Canada has more information on wills in each province and territory.

How To Make a Will

There are three different ways you can create your will in Canada. Retire Happy mentions holographic wills, entirely handwritten by the person making the will. Alberta, Manitoba, New Brunswick, Newfoundland, Ontario, Quebec, and Saskatchewan honor these wills. A holographic will must do four important things:

  • List the testator’s full name
  • Declare that it is the “last will and testament”
  • Name an estate trustee
  • Spell out the person’s wishes

You can also look to online services if your estate is relatively simple. For more complex estates, experts recommend hiring a lawyer.

Smart Planning for Your Family’s Future

Your will probably isn’t the first thing on your mind every day, but it’s critical to your financial planning. Doing your homework is essential, but so is choosing trusted professionals and resources. These steps can help you compose a will that best meets your needs and those of your family.

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