Just Purchased Property and Don’t Have a Will?

Importance of Estate Planning

Dying without a Will can bring about many complications.  Under the Wills, Estates, and Succession Act, who inherits and even how much they inherit is determined by statute, as the Deceased’s wishes are unknown.

Here’s an example of how distribution can look like if someone dies without a Will in the following circumstances:

1. Where there is a spouse and no descendants (children), everything goes to the spouse. Without consideration of the relationships the Deceased may have had with other family members.
   
   
2. Where there is a spouse and children from the same marriage, a preferential share goes to the spouse of $300,000. Where all their children are not common, the spouse received a preferential share of $150,000. The remainder of the Estate is divided as : ½ to spouse and ½ to descendants.

Some general complications that may arise are the following:

1. The Estate Administration process can often be delayed due to needing to seek an authorization to obtain estate information from the court. As there is no Will with an appointed executor, financial institutions can be hesitant to provide the asset information which is required in the Grant of Administration process. This can delay the application process by 6 months or more. 
   
   
2. As a part of the process of applying for a Grant of Administration, any creditor whose claim exceeds $10,000 will need to be provided with notice that a Grant of Administration is being sought. This only applies in cases where the Deceased dies without a Will.
   
   
3. Under the Wills, Estates, and Succession Act, step-children and non-adoptive children, are not considered children, and are thus not automatically entitled to any portion of the estate. While the definition of children under the Wills, Estates, and Succession Act is currently being challenged in court, the expansion of the definition would likely be on a case-by-case basis. This issue will likely lead to litigation involving the Deceased’s estate, ultimately becoming costly for the estate.
   
   
4. If you have minor children, their funds will be held in trust by the Public Guardian and Trustee (the “PGT”) until the attain the age of majority. These funds will be subject to their fees for managing the trust. The guardian of the child will need to apply to the PGT for approval to release funds for expenses such as education, specialized care, or living expenses.
   

An Estate Plan, including a Will, is always recommended in order to avoid the complications listed above. At Vest, we specialize in creating comprehensive personal estate plans that preserve your wealth and promote family harmony.  We create legally binding wills, trusts, and powers of attorney that financial advisors can’t draft. Our lawyers guarantee your documents comply with provincial legislation and handle cross-provincial property complications.

Navigating the Grant of Administration process can be complex and emotionally challenging, especially in grief. To assist you in determining if a Grant of Administration is required for your loved one’s estate, it is best to speak to a professional who can assist you in determining if probate is needed.

Considering Booking an Estate Planning Consultation?

Contact us at Vest Estate Law. Our team of professionals are available and ready to assist you.