Do you need a Will if you only have one child?

[prodigydud]

Does anyone know...in the event both parents pass away, does the estate usually go to the one and only child?

If so, is a legal Will document necessary in this case?


Thanks.

[roopi]

Not sure if necessary but it is definately beneficial to have a will in any case since it makes the entire process easier and quicker.

[ExtraSlow]

There's a lot more in most wills than just deciding who gets the money. For instance, who's going to take care of that kid if both parents die? Does that person get any of the money to help care for the kid? Does all the money go into trust until they are 18?

I think a will is pretty necessary.

[prodigydud]

Originally posted by ExtraSlow
There's a lot more in most wills than just deciding who gets the money. For instance, who's going to take care of that kid if both parents die? Does that person get any of the money to help care for the kid? Does all the money go into trust until they are 18?

I think a will is pretty necessary.

Does it change if the child is already over 18?

[englishbob]

Tax man hopes you don't have a will.

[prodigydud]

Originally posted by englishbob
Tax man hopes you don't have a will.

How so?

[civic_stylez]

If you dont have a will, everything goes to your estate... Creditors and the tax man get first dibs on everything. If you have debt, youre hooped. A will makes sure that funds are transferred to beneficiaries first, out of the reach of creditors.

[Wrinkly]

As soon as one becomes an adult with any kind of assets, debt, or responsibility, one should make a will!

[Sugarphreak]

...

[DeleriousZ]

Yes, absolutely create a will, even if he's the only child. Also be sure to specify him as the executor of estate and all that as well.

I believe explicitly stating things in the will makes things much easier for the legal proceedings following death/severe disability events.

[Team_Mclaren]

no such thing as inheritance tax in canada

[Wrinkly]

http://www.rbcds.com/taxes-at-death.html

[sputnik]

Should you and your spouse should die together, your will should direct who will raise your son and how your estate will be handled until he is old enough.

[KISS_ME]

I asked my lawyer kinda the same question when i purchased my house.

This is what I know or understood what I was told. When you pass away without a will, your assets are distributed by the courts, after all the creditors are paid off the remaining I think will go to next of kin. The thing to note here is that there is kinda a tax here, when the court goes through distributing stuff, they'll take a cut your total assets.
In the case of a written will, depending on how it's written, your assets will go to the written recipient without the court taking a chunk of your money.

[KappaSigma]

No will = goernment decides what happens to your assets. So yes, get a will regardless.

[prodigydud]

Cool. Based on the responses, I get the impression that assets will go to the only child (aka next of kin) regardless - assuming no outstanding debts. However, there are tax benefits if a will is structured correctly.

Thanks guys. :thumbsup:

[sputnik]

Originally posted by prodigydud
Cool. Based on the responses, I get the impression that assets will go to the only child (aka next of kin) regardless - assuming no outstanding debts.

Technically it would (assuming they s/he is of legal age). However with no will the entire estate goes into probate which means the lawyers will get a healthy chunk and there is always the risk of people coming out of the woodwork wanting a portion.

With a will only large assets (properties and businesses typically) will go to probate.


Originally posted by prodigydud
However, there are tax benefits if a will is structured correctly.

I am not sure about this one. Inheritances are tax exempt in Canada.

[killramos]

Definitely get a will. My grandfather just passed and there is some bullshit going on because he had no will. Weird intestate laws in bc where trivially my grandmother is only entitled to 60% of his estate as a wife and the remaining 40 to the kids. Not considering about half the kids are in a feud you can see where this could go badly. We are worried my grandmother could lose her house once probate is over...

[codetrap]

http://www.lawsociety.ab.ca/public/legal_education/estate_planning.aspx

[skandalouz_08]

Originally posted by DeleriousZ
Yes, absolutely create a will, even if he's the only child. Also be sure to specify him as the executor of estate and all that as well.

I believe explicitly stating things in the will makes things much easier for the legal proceedings following death/severe disability events.

Not necessarily and definitely not if the child is under 18. I always suggest to name someone who is financial savvy and understands taxes etc. for basic estate distribution. If the estate is higher networth and can contain lots of complex situations then it's better to appoint a trust company as your executor and for a fee they take care of all the executor responsibilities. Too often I see the spouse named the executor who has never managed the money for the household before and they now have that weight on their shoulders as well as grieving the loss of their spouse.

[yellowsnow]

how much did you guys pay to get a will ? I called a couple lawyers before, and they quoted over $1000 to get it set up.

is it really that different from those DIY will kits?

[skandalouz_08]

Originally posted by yellowsnow
how much did you guys pay to get a will ? I called a couple lawyers before, and they quoted over $1000 to get it set up.

is it really that different from those DIY will kits?

The lawyers that I deal with charge around $750 for a couple. PM if you want their contact info.

[sputnik]

Originally posted by skandalouz_08


Not necessarily and definitely not if the child is under 18. I always suggest to name someone who is financial savvy and understands taxes etc. for basic estate distribution. If the estate is higher networth and can contain lots of complex situations then it's better to appoint a trust company as your executor and for a fee they take care of all the executor responsibilities. Too often I see the spouse named the executor who has never managed the money for the household before and they now have that weight on their shoulders as well as grieving the loss of their spouse.

Why would the executor even get involved if the other spouse is still alive?

When my dad passed away my mom just went through all of their accounts and utilities and just had everything changed over to her name. All she needed was her ID and the death certificate. The will stayed in the safety deposit box the entire time.

[skandalouz_08]

Originally posted by sputnik


Why would the executor even get involved if the other spouse is still alive?

When my dad passed away my mom just went through all of their accounts and utilities and just had everything changed over to her name. All she needed was her ID and the death certificate. The will stayed in the safety deposit box the entire time.

It's up to the couple but for example if your mom wasn't able to do everything she did in your case an executor would take care of it all for her. Not all spouses want to be responsible for filing a final estate tax return, balancing cheques in and out of the estate account and everything else that goes along with the death of a loved one. Naming an executor who isn't the surviving spouse is a matter of personal opinion.

[dexlargo]

Originally posted by prodigydud
Does anyone know...in the event both parents pass away, does the estate usually go to the one and only child?

If so, is a legal Will document necessary in this case?


Thanks. In Alberta, if you die without a will, your estate is distributed according to Part 3 of the Wills and Succession Act (http://canlii.org/canlii-dynamic/en/ab/laws/stat/sa-2010-c-w-12.2/latest/sa-2010-c-w-12.2.html#Part_3_Distribution_of_Intestate_Estates_78518). I am more familiar with the prior law, the Intestate Succession Act, so I apologize in advance if I get anything wrong here.

Generally, yes, if you have one child, your estate will go to that child. Probably. Are you married or live common-law with the other parent? If so, does she have a will? If you are married and don't have a will and you die in the same event as your spouse, the old law deemed the older of the couple to have died first. If that's you, then your estate would have actually gone to your spouse first (because the law deems her to have survived you), then it would be distributed according to her will. It seems this is different in the new Act. It appears that where an order of death cannot be determined, each person's estate is distributed as if the other person died before them. So now it doesn't look like either estate would flow into the other, but the wording is kind of confusing. If it is possible to determine that your spouse survived you for some period (whether minutes or hours or days), then your estate would go to her still, because she has a higher priority - according to the Act - than your child.

If you are married or live common-law with someone who is not the other parent, and she survives you for some period, then it gets more complicated but basically half would go to your spouse and be distributed according to her estate and half would go to your child.

A properly prepared will can make it clear that these things should not happen, if you don't want them to happen.

There are other reasons that you should have a will. For example, some court costs will come out of the estate that you could avoid if you have a will that appoints an executor who will administer the estate for free.

And as others have said, you should appoint guardians for your child, the main upshot being you can prevent a big fight over custody from happening.

Ask the people you intend to appoint first. They should know that they have been selected in advance. Also, you should name backup guardians and executors in case your first choices are unwilling/unable to act at the time of your death.

Finally, in the event that you, your wife and your child all die together, the Act can have your estate go to some random relative that you might not want it to go to, and if there are no relatives that can be found, it would go to the government of Alberta.

With a will, you could specify a specific relative, a friend or a charity to get your property if you all die together, and prevent it just going to the government or your closest relative.


Originally posted by civic_stylez
If you dont have a will, everything goes to your estate... Creditors and the tax man get first dibs on everything. If you have debt, youre hooped. A will makes sure that funds are transferred to beneficiaries first, out of the reach of creditors. Hate to break it to you - a will doesn't do that. The whole point of the will is it directs the distribution of your estate. Your estate always has to clear its debts before distribution. Creditors get paid - that's a normal part of the probate process and your will won't stop that.

There are ways to keep some assets out of your estate though, but this is not done in a will. The most common of those assets would be real estate you own with someone else as a joint tenant and life insurance policies that are payable to a named beneficiary - those don't go into the estate. Usually those things are directed at the spouse though, so if you die together with your spouse, those things will go into your estate anyway.

[prodigydud]

^^ solid thanks! :thumbsup: