How to Reduce the Risk of an Estate Challenge in Ontario

Estate challenges in Ontario are more common than many people think. Estate challenges are often sparked by unclear Wills, complicated family relationships, or doubts about someone’s real intentions. While you can never completely prevent someone from attempting to challenge your estate, careful planning can make it much harder for disputes to arise. By documenting your wishes clearly and using smart legal strategies, you can give your loved ones peace of mind and reduce the chance of unnecessary conflict after you’re gone.

A valid, professionally drafted Will is the first line of defense against a potential estate challenge. Wills that are handwritten, downloaded from templates, or drafted without legal advice frequently contain errors or ambiguities that can lead to disputes. In Ontario, a Will must comply with the formal requirements of the Succession Law Reform Act, including proper signing and witnessing. A lawyer will make sure your Will is not only legally valid but also clear, complete, and prepared for potential future scenarios such as a beneficiary predeceasing you. By eliminating gaps or ambiguities, you significantly reduce the opportunity for someone to argue over your intentions.

Questions of mental capacity or undue influence are another common reason for an estate challenge in Ontario. When you create or update your Will, it is critical that you demonstrate you understand the nature and value of your assets, the individuals who might expect to inherit, and the overall impact of your decisions. Lawyers are trained to assess testamentary capacity and to document their observations, but additional steps may help if you anticipate family conflict. For example, obtaining a medical letter confirming that you were mentally capable at the time of signing can serve as strong evidence in the event of a challenge.

If you make major changes to your Will, consider explaining your reasoning in a letter of wishes kept with your lawyer’s file. While this letter is not legally binding, it provides helpful context for your decisions and can reduce the likelihood of disputes among beneficiaries.

Planning Ahead to Reduce Estate Challenges in Ontario

Estate challenges often arise when someone feels they have been unfairly excluded or inadequately provided for. Ontario law gives certain individuals the right to claim support from your estate regardless of your Will. Spouses, minor children, and dependent adult children may bring claims under the Succession Law Reform Act. This means that if you have a legal obligation to support someone during your lifetime, you must also consider that obligation when planning your estate. Proper planning, such as ensuring that dependents are adequately provided for or documenting why support is not required, can prevent valid claims from arising. My recent blog on estate planning for minor children explores why planning for dependents is so critical and how trusts can help.

Beyond the Will itself, certain planning tools can help prevent an estate challenge from arising in the first place. Some assets, like RRSPs, RRIFs, and TFSAs, let you name beneficiaries directly so the funds go to them without going through your estate, which reduces the chance of disputes. Life insurance policies work in a similar way when you name a beneficiary.

You can also choose to own property or a bank account jointly with someone else, so that when one of you passes away, the other automatically becomes the sole owner. However, joint ownership must be used carefully. If a joint bank account is set up just for convenience, such as helping an elderly parent pay bills, this should be clearly documented to avoid confusion or disagreements about who owns the money after death. Please note that there are risks in joint ownership as putting someone jointly means they become an equal partner and can use funds without the other’s knowledge or approval.

In more complex situations or where asset protection is important, creating a trust can be very effective. A trust, whether set up during your lifetime or through your Will, allows you to control how and when beneficiaries receive assets, which can help prevent conflict. For families with a loved one who has a disability, a Henson Trust is often the best way to protect benefits and ensure long-term care without affecting any government assistance they may be receiving.

Executor selection also plays an important role in avoiding an estate challenge. The person you appoint to administer your estate must not only be trustworthy but also capable of handling potential conflicts. Executors who are perceived as impartial, transparent, and communicative often prevent disagreements from escalating. For guidance on choosing the right executor, see my blog on key considerations when selecting an estate trustee. Including a fair executor compensation clause in your Will can further reduce conflict by setting clear expectations about fees and avoiding disputes with beneficiaries.

A forfeiture clause, also known as a no-contest clause, is a provision that can be included in your Will to discourage unnecessary challenges. This clause states that if a beneficiary disputes the Will, they risk losing the inheritance you have left them. While Ontario courts will not enforce a forfeiture clause against someone with a valid legal claim, such as a dependent support claim or a challenge based on lack of capacity, it can still serve as a strong deterrent against frivolous or vindictive disputes. For beneficiaries who stand to inherit something meaningful, the risk of losing that inheritance may be enough to prevent them from contesting your Will.

An estate plan is not a one-time exercise. Life changes such as marriage, separation, divorce, the birth of children or grandchildren, or significant changes in assets all require you to revisit your plan. A Will that is outdated or no longer reflects your circumstances is far more likely to be challenged, as it may appear incomplete or inconsistent with your intentions. Reviewing your plan regularly and updating it when necessary ensures that it remains both accurate and defensible. Documenting these reviews with your lawyer adds an extra layer of protection by demonstrating that your plan is both deliberate and current. Even simple measures like writing a letter of wishes can help clarify your reasoning, especially if you are leaving unequal gifts or excluding a family member who might otherwise expect an inheritance. While such letters are not legally binding, they provide valuable insight into your thought process and can help courts and family members understand why you made the decisions you did.

While you can’t completely stop someone from trying to challenge your estate in Ontario, you can take steps that make disputes far less likely. A well drafted, up-to-date estate plan, supported by clear evidence of capacity, thoughtful planning for dependents, smart use of beneficiary designations and trusts, and, where appropriate, a forfeiture clause, offers the strongest protection for your wishes and helps prevent unwanted conflict.

If you would like to create an estate plan that reflects your wishes and reduces the likelihood of disputes, reach out to E is for Estates to schedule a consultation.

This article is intended for informational purposes only. For personalized advice tailored to your specific circumstance, please reach out to the E is for Estates team.

Erin L. Watson, B.A., JD

Lawyer & Notary Public

E is for Estates