We do a lot of wills in our office so if you are thinking about doing a Will please feel free to call us.
Many clients come to my office believing that if you don’t make a Will the government comes along when you die and takes half of the inheritance. They think that by making a Will the government can’t take half.
For most people this is just not true. If your assets are the house that you live in and your savings then the government will not take half of your assets when you die. If your Will has to be probated – probate is a process where the Will is presented to a judge in Ontario and authenticated – then estate fees must be paid to the Court. These court fees are about 1.5% of the value of the assets on the date of death. The same fees are paid to the court if you die with assets in your name without a will.
On the other hand, if you have business assets usually the government will consider that your business assets have been sold at fair market value as of the date of your death and capital gains taxes will have to be paid. If there is a lot of property then payment of capital gains tax could be significant. And this is how some people probably came to believe that when you die the government takes a big chunk of the assets. Because they don’t appreciate the difference in what happens when an asset is a business or an investment asset as opposed to a personal home and personal savings.
For most people perhaps the best reason to have a will prepared is so that assets are distributed as they desire following their death. Most assets held jointly fall outside the estate and do not form part of the estate. If you die without a Will estate assets get distributed according to law. And Ontario law currently states that the surviving spouse gets a share and then the rest must be shared with surviving children. The surviving spouse could be forced to sell assets if this happens.
The best thing to do is make a will. I know it’s not something many people like to think about or do. It took my wife 15 years to convince me to do our Will. Don’t wait 15 years to do yours.