At the top of your “new parent to-do list” should be making a will and completing some estate planning. While it may seem like too soon to prepare for your family, it’s never too early to plan for the future
This article provides a concise overview of estate planning for new parents. In a short amount of time, you’ll have accomplished this goal.
Why Should Parents Have a Will?
Everyone over 18 in Canada should have a will, but parents take priority. And with good cause! Having a will in place not only safeguards your property and possessions but also allows you to make provisions for your children’s future.
If you have a child on the way, you may wish to review your existing will or create a new one. It is the law in Canada that both biological parents must provide financial assistance for their dependent children. Donating to or leaving property to a trust for the benefit of underage children is one option.
While drafting a will, it’s crucial to consider your children’s future (or backup beneficiaries). For parents, this provision of a will is vital. If your kids are still minors, you should name a guardian. The law will ascertain who gets your property if you don’t choose a beneficiary in a will.
When Parents Die, What Happens If There Is No Will?
You are said to have died “intestate” if you do not leave a will behind. If that happens, the laws of the province in which you reside will govern your estate, and the courts will make numerous decisions about your children.
Possible Outcomes When a Parent Dies without a Will:
- Instead of waiting until they reach a specific age that you specify, your children will receive their inheritance when they turn 18.
- The process of administering your estate, which the courts will appoint an executor to finish up, will be prolonged.
- If you cannot care for your minor children, the court will appoint a guardian for them.
- If you and your significant other have young children in Ontario, all of your property will be split 50/50. Until the children reach adulthood, your spouse will have no access to any of it. Should you pass away, your province-specific estate distribution formula will be applied.
What If I Have a Will in Place before I Have a Child?
Changing your will to include a new child is as simple as adding a guardian and naming the youngster or children as beneficiaries. Having this legal document in place puts you ahead of the game.
In What Ways May a Power of Attorney Help a New Family?
A will is required and carried out later, but a power of attorney is something you should have on hand “just in case.” One may compare this to purchasing both life insurance and auto insurance, with the former covering the cost of your loved ones’ financial support in the event of your untimely demise and the latter covering financial losses incurred in the event of an accident.
If you pass away, a trusted family member will need to file paperwork asking the court to assume your role as guardian. It’s possible they won’t be able to handle responsibilities such as making financial or health care decisions on your behalf. Although unpleasant, planning is as important as auto insurance.
New parents must understand the process of making a will and planning their estate. This guide summarizes the steps involved in both methods and the importance of doing so. By taking the time to establish a will and plan their estate, new parents can ensure that their aspirations are carried out in the event of their death.
Do you need the services of wills & estates lawyers based in Ottawa, ON? Ontario Wills is the one you need to call! All of Ontario has access to our excellent services. Our costs are reasonable and within most people’s budgets. We offer high-level counsel to clients who are serious about their business and have demanding requirements. Get in touch with us today for all your wills, powers of attorney, and estate planning needs.