How to Write a Will in Ontario: A Guide for Peace of Mind

According to Canada Life, half of Canadians don’t have a will. In addition, one-quarter of people without a will say they are simply too young to worry about creating one. With those statistics in mind, you would assume that writing a will is difficult but in reality, it does not have to be.

Writing a will is an essential step to protect your assets, family, and final wishes after your passing. Some people find creating a will to be challenging, between the cost, understanding the legal requirements of a will, and perhaps the hardest part – confronting the uncomfortable reality of your own death.

In Ontario, the process of creating a will is relatively straightforward and can even be done without the assistance of a lawyer. This guide walks you through the essentials of drafting a will and explores how insurance can be leveraged as an asset after your death.

What Is a Will?

A will is a legal document that outlines how your assets, including any money, investments, land, and personal property, will be distributed after your death. It can also name guardians for your minor children or your pets. Many people also use their will to specify their final wishes, such as funeral arrangements (burial, cremation, etc.).

What Happens If You Die Without a Will in Ontario?

In Ontario, if you die without a will it is referred to as dying “intestate.” If this happens, all of your money, assets, and debts are put into an estate and a court-appointed representative is made responsible for wrapping-up your financial affairs and distributing your assets in accordance with the estate laws of your province.

By not having a will, not only do you lose control over who receives your assets, but there are also significant taxes associated with dying intestate. Having a will allows you to decide how your assets are distributed and to whom, whether it be children, a spouse, a partner, family members, or even charities.

When Should You Create a Will?

A 2023 Angus Reid study showed that people living in lower income households were twice as likely to not have a will, than households with an income of over $100,000. Many of the lower income households stated that they don’t believe they have enough assets for them to need a will.

Regardless of how many assets you have, dying without a will leaves your loved ones to guess what your intentions for burial may have been, where important documents are located, and how you want any assets (even if there are minimal) divided. Having a will can help your loved ones by providing them with direction during a difficult time and prevent the heavy taxation that comes with dying intestate.

Christine Van Cauwenberghe, the head of financial planning at IG Wealth Management, commented to the Toronto Star that she believes every Canadian aged 18 and older should have a will, but especially those with children.

What Goes Into a Will in Ontario?

• Executor Appointment: Choose a trusted individual to carry out your final wishes as listed in your will. This person, known as the executor, will manage your estate, pay off any debts, and then distribute any remaining assets to your selected beneficiaries.
• Distribution of Assets: Use your will to clearly outline how your property, savings, investments, and personal belongings should be divided and to whom.
• Guardianship of Children or Pets: If you have children under 18, you can appoint a guardian to care for them in the event of your passing. This also applies to your pets as well.
• Funeral and Burial Wishes: You can even use your will to detail your preferences for funeral arrangements to help guide your family during an emotional time.

What Are The Legal Requirements for a Valid Will in Ontario?

There are two primary types of wills: Attested Wills and Holograph Wills.

An Attested Will is usually a typed document, that the testator (the person whose will it is), signs in front of two witnesses. Afterwards, the two witness then sign the will in front of each other. A witness cannot be someone who is a beneficiary listed in the will. If they are a listed beneficiary of any assets as outlined in the will, by acting as a witness during this signing process they are voiding themselves of any entitlement of what was left to them in the will.

A Holograph Will is entirely handwritten and signed by the testator. You do not need a witness for a holograph will or a lawyer to create one. Holograph wills can be helpful in emergency situations or if you can’t get to a lawyer soon enough to update your will following a major life event. The sudden death of a spouse or a sudden separation from your partner can leave you scrambling to update your will to correctly reflect who should receive your assets, which is why a holograph will may come in handy.

To create a will, you can hire a lawyer, use an online or printed will kit, or simply write one by hand (this is valid in most parts of Canada). However, while you can write a will yourself, consulting a lawyer or using a reputable estate planning service ensures your document meets all legal requirements.

How Often Should You Update Your Will?

You should update your will after any major life milestone, such as getting married (or divorced), having children or grandchildren, and moving or buying a new home. According to the 2019 Canadian Financial Capability Survey, of Canadians aged 65 and older who have a will, 53% of them have not updated their will in the last 5 years. It’s essential that you periodically update your will so that it accurately reflects your final wishes.

The Role of Insurance in Estate Planning

Insurance policies often play a crucial role in estate planning. Here’s how they can impact your will:

• Life Insurance Payouts: Life insurance benefits and payouts are not governed by your will but by the beneficiary designation on your policy. It’s important to ensure that your beneficiaries are up to date to avoid court disputes or unintended payouts.
• Mortgage Insurance: If you have mortgage insurance, a life insurance policy can cover remaining mortgage debt, ensuring the property passes to your heirs debt-free.
• Funeral Insurance: Some insurance policies (including some life insurance, critical illness insurance, auto insurance, and home insurance policies) have add-on coverages that are designed to cover funeral expenses as outlined by the terms of the policy, reducing the financial burden on your estate.
• Property Insurance Considerations: For property left to beneficiaries, ensure they have the proper insurance coverage in place. For example, if a family home is passed down, the new owner must update the homeowner’s insurance policy to their name.
• Disability or Critical Illness Insurance: These policies provide financial support if you become incapacitated before your death. This can ensure your estate’s assets remain intact for your heirs.

Final Thoughts

Writing a will in Ontario is about more than just dividing assets; it’s about ensuring peace of mind for you and your loved ones. Whether you’re drafting a will for the first time or updating an existing one, taking the time to consider your estate planning and understanding the legal requirements of a will can make a world of difference.