Make Estate Planning Your New Year’s Resolution

The start of a new year is often a time for reflection and planning. Many people focus on resolutions related to health, finances, or career goals, but estate planning is frequently left off the list. However few decisions provide the same level of long-term clarity and peace of mind as having a solid estate plan in

place.

Estate planning is not only about what happens when you die. It is about making thoughtful decisions now so that your affairs are handled properly if something unexpected occurs. Taking the time to address estate planning allows you to move forward knowing your wishes are documented and your loved ones are protected.

January is a practical time to address your estate planning, whether you are putting documents in place for the first time or reviewing and updating an existing plan.

The Risks of Delaying Estate Planning in Ontario

Many people delay estate planning because they believe it can wait. Some feel they are too young or in good health, while others assume their situation is simple enough that formal planning is unnecessary. In reality, unexpected events are exactly why estate planning matters.

In Ontario, if you die without a valid Will, your estate is distributed according to the law rather than your personal wishes. These intestacy rules are fixed and do not account for individual priorities, family dynamics, or personal relationships. Certain relationships, including common law unions, are not treated the way many people expect, and the outcome can be very different from what someone would have chosen for themselves. Read more about common law considerations in our previous blog.

Without a Will, Ontario law sets out specific rules for how an estate is distributed, including:

• Legally married spouse and no children: The spouse inherits the entire estate.

• Legally married spouse and children: The spouse is entitled to the first $350,000 of the estate. The remaining balance is then shared with the children. If there is one child, the spouse and child each receive half of the remaining balance. If there are two or more children, the spouse receives one third and the children share the remaining two thirds equally.

• Children but no legally married spouse: The children inherit the estate equally. If a child has died, that child’s share generally passes to grandchildren if they exist.

• No spouse and no children: The estate passes to the deceased’s parents. If the parents are not alive, it is divided among siblings or more distant relatives.

• No eligible relatives: If no relatives within the statutory order can be located, the estate ultimately becomes property of the government.

These outcomes apply automatically if there is no Will and leave no flexibility to reflect personal intentions.

In addition to determining who inherits, dying without a Will often creates unnecessary delay and expense. Someone must apply to the court to be appointed as estate trustee, and disagreements can arise about who should manage the estate or how decisions should be made. What could have been a clear and efficient process often becomes stressful for loved ones during an already difficult time.

Having a valid Will in place allows you to decide who inherits, who administers your estate, and how your affairs are handled, rather than leaving those decisions to default rules.

When You Should Review Your Will in Ontario

For many people, estate planning does not end once a Will is signed. A Will that made sense at one stage of life may no longer align with current family relationships, financial realities, or long-term intentions.

Life changes often signal the need for a closer look. Marriage, separation, divorce, the birth of a child, changes in assets, or shifts in family dynamics can all affect whether a Will continues to serve its purpose. Even when your overall intentions remain the same, updates may be required to ensure your Will still works as intended under Ontario law.

Estate Planning in Ontario Involves More Than a Will

While a Will is a foundational document, it is only one part of a complete estate plan. Proper estate planning in Ontario also considers what happens if you are alive but unable to make decisions for yourself.

Powers of attorney are a central part of this planning. A Power of Attorney for Property allows someone you trust to manage financial matters such as paying bills or handling investments if you become incapable. A Power of Attorney for Personal Care allows decisions to be made about health care and personal living arrangements. Without these documents, loved ones may need to apply to the court for authority to act, adding delay, cost, and stress at a time when decisions often need to be made quickly.

Estate planning also requires coordination between your Will and how certain assets pass outside of it. Registered accounts and insurance policies often transfer based on beneficiary designations, which can override what is written in a Will. Ensuring these elements work together helps prevent unintended outcomes and confusion.

Depending on your circumstances, estate planning may also involve tax and probate considerations. Certain planning tools, including trusts, can sometimes be used to manage income tax after death or to reduce probate.

While not every estate requires complex strategies, understanding what applies to your situation allows you to plan more effectively.

Creating a Clear Estate Plan in Ontario

Taking the time to put an estate plan in place provides structure and certainty. It allows you to decide who inherits, who is responsible for administering your estate, and who can make decisions on your behalf if you are unable to do so, rather than leaving those outcomes to default rules that may not reflect your wishes or your family’s reality.

Working with professional guidance can help ensure your planning is complete and properly aligned with your circumstances. Even where documents already exist, a review can identify gaps, confirm compliance with Ontario law, and ensure your estate plan functions as intended.

If you are ready to start the year with a clear estate plan we can help guide you through the process. Whether you are putting documents in place for the first time or reviewing an existing plan, getting advice tailored to your circumstances can provide clarity and confidence.

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