A shocking truth: many Canadian parents are leaving their children’s future in the hands of fate, or worse, the courts. It’s a scary thought, but one that needs to be addressed.
Let’s say you pass away without a will. Your hard-earned assets, including that dream home you’ve been saving for, could end up in the hands of your teenager, with no guidance on how to manage it. Half of your wealth would go to your spouse, but the other half? It’s a waiting game until your child turns 18 or 19, depending on the province. And then, boom, a lump sum inheritance, no strings attached.
But here’s where it gets controversial. Most parents want to ensure their children receive their inheritance at an age when they can handle it responsibly. Yet, a recent poll reveals a startling reality: 43% of Canadian parents haven’t taken the necessary steps to secure their children’s future through a will.
So, why the hesitation? Cost is often cited as a barrier, but with parental leave, childcare, and mortgage payments already stretching budgets, it’s understandable that estate planning might take a back seat. However, in today’s world, there are options for every budget, and it’s time to explore them.
Let’s start with the basics. You can create a will yourself, by hand, in most provinces. But be warned, there are risks involved. Experts caution against potential pitfalls like omitting key choices, using ambiguous language, or not adhering to legislative requirements. If you choose this route, ensure you cover the three crucial roles: an executor to manage your estate, beneficiaries to receive your assets, and a guardian for your minor children or pets. And remember, each province has its own requirements, so make sure you’re following the right guidelines.
For those seeking a more affordable option, many provincial governments offer free downloadable power of attorney forms. These documents appoint someone to make crucial health and financial decisions on your behalf if you become incapacitated. It’s a simple yet powerful tool to ensure your wishes are respected.
If you’re looking for a more comprehensive solution, Canada offers a range of lower-cost paper will kits and online platforms like LegalWills, Epilogue Wills, and Willful. Prices vary, from around $30 to $150 for a will, with additional fees for power of attorney documents. These online platforms are ideal for parents with straightforward situations, offering a step-by-step guide to creating legal documents without the need for a professional.
But what if your situation is more complex? Perhaps you have a blended family, a child with special needs, or you require legal advice tailored to your unique family dynamics. In such cases, seeking professional guidance might be the best course of action. You can visit a notary in B.C. or Quebec, or an estate lawyer in any province. The cost of professional services varies widely, with simple wills averaging $600 and complex wills reaching $1,200. For a comprehensive package including a will and power of attorney documents, the average cost is $948.
It’s important to consider the ongoing costs too. Life changes, and so will your estate plan. Whether you use an online platform or work with a professional, be prepared for additional fees when updating your documents.
Estate planning isn’t just about legal documents. It’s about ensuring your children have the support they need, even in your absence. Record key information related to your children, such as contact details for their doctors or care guidelines. Provide any relevant information that could assist an executor in wrapping up your affairs or a guardian in taking over your children’s care. There are plenty of free or inexpensive tools available to help you with this, from simple Google Drive folders to password managers like 1Password.
As a co-founder and CEO of an online estate planning platform, I’ve seen firsthand the suffering families endure when a parent dies without documenting their wishes. Creating an estate plan is an investment in your children’s future, ensuring they inherit a positive legacy, not a mess.
So, Canadian parents, it’s time to take control. Don’t leave your children’s future to chance. Start planning today, and rest easy knowing you’ve secured their tomorrow.