About Wills in Canada
A will is a document that gives instructions to people on how they should distribute your money, property, and belongings after your death.
It is in this document that you decide who receives what and who will manage your assets. Each province in Canada has certain regulations regarding the way wills should be written and signed in order to be considered valid.
In your will, you will also appoint an executor, that is, the person who implements your instructions. This person pays your debts, distributes your assets and deals with legal issues.
In the absence of a will, a court will appoint a person to administer this task, and he or she may not be the person you would have selected.
In order for a will to be valid, it has to be in writing, signed by you and witnessed by two persons who do not inherit anything in your estate.
Such witnesses will need to observe you signing and then sign the document in your presence. Although there are some provinces that accept handwritten wills that have no witnesses, this may lead to difficulties in the future.
Wills only cover assets you own alone. Joint bank accounts, life insurance where beneficiaries are named and RRSPs where recipients are designated, all pass directly to those individuals and do not go through your will.
How to compare will platforms
When choosing where to make your will, several factors matter for getting the best service and value:
- Cost and Pricing Structure: Consider platforms with one-time payments as opposed to monthly Subscriptions. There are platforms that range in cost from $99 to 300 one time, to platforms that have a recurring cost.
- Legal Compliance by Province: Each Canadian province has different will requirements. Make sure the platform creates wills that follow your province’s specific laws.
- Customer Support Quality: Look for platforms offering phone, email, or chat support from real people. Some provide access to lawyers for questions, while others only offer automated help.
- Document Storage and Access: Consider how the platform stores your completed will. Cloud storage lets you access it anywhere, but physical storage might feel more secure. Some platforms provide both options or offer vault services.
- Additional Features Included: Many platforms bundle other estate planning documents, like power of attorney forms or living wills. Compare what’s included in the base price versus what costs extra.
- User Interface and Ease of Use: A platform that is difficult to understand causes errors. Find easy to follow step by step procedures with clear explanations.
Legal Wills Canada
- Comprehensive Estate Planning
- User-Friendly Process
- Unlimited Updates for 1 Year
- Affordable Pricing
- Designate Keyholders
- Convenient Process
- Comprehensive Estate Planning
- User-Friendly Process
- Unlimited Updates for 1 Year
- Affordable Pricing
- Designate Keyholders
- Convenient Process
Epilogue
- Fast and Fully Online Process
- Affordable Pricing with Free Updates
- Comprehensive Estate Planning Tools
- Near-Canada-Wide Availability
- Secure Document Storage and Will Registration
- Fast and Fully Online Process
- Affordable Pricing with Free Updates
- Comprehensive Estate Planning Tools
- Near-Canada-Wide Availability
- Secure Document Storage and Will Registration
Willful
- User-Friendly Interface
- Comprehensive Document Options
- Customizable Inheritance Plans
- Free Unlimited Updates
- Charitable Giving Options
- User-Friendly Interface
- Comprehensive Document Options
- Customizable Inheritance Plans
- Free Unlimited Updates
- Charitable Giving Options
Formal Will
- Instant Document Generation
- Optional Lawyer Review
- Legally Compliant
- Pet Coverage Available
- Instant Document Generation
- Optional Lawyer Review
- Legally Compliant
- Pet Coverage Available
What are wills for?
Wills serve several critical purposes that protect your interests and your family’s future. Here are the purposes that a will serves:.
- Controlling Asset Distribution: Your will determines exactly who gets your money, property, and belongings instead of letting provincial intestacy laws decide. Without a will, the government follows preset formulas that rarely match what people actually want.
- Naming Guardians for Minor Children: If you have kids under 18, your will tells courts who should raise them if both parents die. This prevents family disputes over custody and ensures your children go to people who share your values.
- Appointing Your Executor: Your will names the person who manages your estate after death. This person handles everything from paying bills to distributing assets. Choosing someone organized and trustworthy makes the process smoother and reduces stress for your family during a difficult time.
- Handling Debts and Final Expenses: Your executor uses estate money to pay off credit cards, loans, taxes, and funeral costs before giving anything to beneficiaries. This protects your family from inheriting financial problems and ensures all legal obligations are met properly.
- Minimizing Taxes and Maximizing Inheritance: Strategic planning through wills can reduce what your estate pays in taxes, leaving more money for your loved ones.
- Expressing Personal Wishes: Wills let you make specific gifts of sentimental items, support favourite charities, or leave messages for loved ones. These personal touches ensure your values and relationships are honoured after you’re gone.
Who needs a will
While every adult Canadian should have a will, certain groups face higher risks and complications without proper estate planning:
- Parents With Minor Children: Parents with kids need wills the most urgently since the document appoints guardians to children who are under 18 years old. In the absence of a will, the courts determine who is to raise your children, and this can take months as children are left in ambiguous circumstances.
- Property Owners of Any Value: Anyone who owns real estate, vehicles, or significant personal belongings needs a will for proper asset transfer. Even a modest apartment or older car requires legal documentation for transfer after death. Banks, insurance companies, and government agencies won’t release assets to family members without proper estate documentation.
- People With Complex Family Situations: Divorced people, people who have children with more than one partner or any person in a blended family will require wills to indicate their intentions on inheritance. Standard provincial inheritance laws assume traditional family structures and don’t handle modern family complexities well.
- Business Owners and Entrepreneurs: Anyone who owns part or all of a business must have wills addressing company interests and succession plans. Without clear instructions, business partnerships can dissolve, key employees might lose jobs, and company value can disappear.
- People With Specific Distribution Wishes: People who want to leave money to friends, charities, or specific causes need wills because standard inheritance laws only recognize family members. If you want your book collection donated to a library, jewelry given to a particular friend, or money left to animal shelters, only a will ensures these personal touches happen.
- Young Adults With Student Loans or Other Debts: Wills are helpful even to people who owe more money than they own, since the documents give guidelines on how the debts should be settled and the assets distributed. Wills ensure that family members do not inherit any financial problems, and any assets can be distributed as per your wishes as opposed to creditor claims.
When to make a will
Creating a will at the right time protects your family and ensures your wishes are followed. Here are the key moments when you should make or update your will:
- When You Turn 18 or Get Your First Major Asset: Legal adulthood means that you are able to make binding legal documents. Young people who have small savings or a car will also require wills.
- Before or After Getting Married: Marriage automatically cancels existing wills in most Canadian provinces, so you’ll need a new one. Married couples should create wills that work together, naming each other as primary beneficiaries and choosing guardians for future children.
- When You Have Children: Parents must name guardians for minor children in their wills. Without this, courts decide who raises your kids, and their choice might not match yours. This process can take months, leaving children in uncertain situations during an already difficult time.
- After Buying Your First Home: The biggest asset owned by most people is real estate, and it needs to be transferred properly after death. Even with a mortgage, your equity has to go somewhere in particular.
- When Starting a Business: Owning a business presents complicated estate planning situations. Without proper documentation, partnerships might dissolve, and employees could lose their jobs. Business wills should address company succession, partnership agreements, and key person insurance policies.
- During Divorce Proceedings: Divorce usually rescinds bequests to former spouses, and so you must have new documents with different beneficiaries and executors.
- After Receiving an Inheritance or Major Financial Windfall: Sudden wealth changes your estate planning needs significantly. Large inheritances, lottery winnings, or investment gains create tax planning opportunities and new distribution decisions that require updated wills.
- Before Major Travel or Surgery: Nobody expects problems or bad news, but being prepared gives you peace of mind. If you’re travelling to dangerous areas or having serious medical procedures, ensure your will is current beforehand.
5 types of wills
There are various forms of wills which suit varying needs and circumstances. Knowing the differences between each will allow you to make the proper decision given your situation and financial capabilities.
Online wills
Online wills are digital documents created through internet platforms. These services guide you through questionnaires to build your will automatically.
The process is cheaper and faster, often taking 30 minutes or less to complete. However, online wills work best for straightforward situations.
If you have complex assets, multiple properties, or complicated family dynamics, a lawyer-drafted will might be safer since online platforms can’t provide the personalized advice that complex estates require.
Most online platforms create legally valid documents for all Canadian provinces, and some even provide notarization services or connections to lawyers for questions.
But the biggest risk with online wills is missing important details. While the platforms ask comprehensive questions, they can’t anticipate every unique situation.
Review your completed will carefully and consider having a lawyer check it if your estate is complex.
Simple wills
Simple wills are basic documents that handle straightforward estate situations. They usually leave everything to a spouse, then to children if the spouse has died.
These wills work well for people with uncomplicated assets and family situations.
Most simple wills include standard provisions like naming an executor, appointing guardians for minor children, and providing basic asset distribution instructions. They usually run 3-6 pages and use plain language that’s easy to understand.
The main benefit of simple wills is their clarity and low cost. Because they’re straightforward, there’s less chance of confusion or legal challenges later.
They’re also quick to create and easy to update when circumstances change. Simple wills work best for younger people, those with modest assets, or anyone with clear distribution wishes.
If you’re married with children and want everything to go to your family, a simple will probably meet your needs perfectly.
Joint wills
Joint wills are single documents that are signed by two people, mostly spouses. In case of the death of one person, everything goes to the surviving spouse.
In case of the death of both, the will is used to allocate assets in accordance with their mutual desires. Joint wills are attractive because they are simple and cheap to get; a single document rather than two.
They also make sure that both spouses are in an asset-sharing agreement so that there is no dispute over who should inherit what.
Holographic wills
Holographic wills are handwritten and are entirely written in the handwriting of the person. Other provinces in Canada such as Ontario or Alberta accept such wills as valid without witnesses.
The primary benefit is accessibility in real-time – a holographic will can be written at any place and any time, without attorneys or witnesses.
This renders them applicable in cases of emergencies or where professional assistance is unavailable. Nonetheless, holographic wills can cause numerous issues. Handwritings are sometimes illegible and cause conflict on what you might have actually written.
In the absence of witnesses, it may be difficult to establish that you wrote the will personally, particularly where your handwriting had changed as a result of ageing or sickness.
Pour-over wills
Pour-over wills work well with living trusts in addressing estate planning. These documents pour over any assets that are not already held in the trust, into the trust upon your death.
They act as your backup documents to scoop anything that you overlooked to move during your lifetime.
What happens though, is if you forget to transfer a bank account or other new asset into your trust, the pour-over will ensure it is handled according to your trust directions.
Pour-over wills will also appoint guardians to any minor children handles any personal items that should not be put in trusts. They offer a full estate plan combined with properly funded trusts.
However, pour-over wills only work with established trusts. The establishment and management of trusts involve continuous legal and administrative efforts and hence this technique proves to be more costly and complicated compared to mere wills.
How much does a will cost
- Online Will: Online will platforms offer the most affordable option, they usually charge between $99 to $300 for complete documents. These platforms often include additional estate planning documents like power of attorney forms. Some charge one-time fees, while others require annual subscriptions for updates and storage.
- Lawyer Drafted Will: Simple wills from lawyers can cost around $300 to $800, while complex documents can reach $1500 to $3000 or more. The location and complexity of your situation impacts costs. Basic wills for young people with few assets cost less than documents for business owners or those with multiple properties. Tax planning, trust provisions, and complex family situations all increase legal fees.
Additional services like document storage, regular reviews, and updates, all add to the total cost.
Some lawyers offer package deals including wills, power of attorney documents, and initial consultations for $500 to $1000. And don’t forget ongoing costs.
Wills are meant to be reviewed every 3 to 5 years or after major life changes. Updates can cost around $100 to $500 depending on the changes needed. Online platforms sometimes include free updates, while lawyers charge for each revision.
How to make a will
Creating a will involves several important steps that ensure your document is legally valid and accurately reflects your wishes. Following this process carefully protects your family and assets:
- Inventory Your Assets and Debts: List everything you own including bank accounts, investments, real estate, vehicles, and personal belongings. Also note all debts like mortgages, credit cards, and loans. This inventory helps you understand what your will needs to cover.
- Decide on Beneficiaries and Asset Distribution: Choose who gets what from your estate. Consider backup beneficiaries in case your first choices die before you. Be specific about valuable items to prevent family disputes.
- Choose Your Executor: Select someone trustworthy, organized, and capable of handling financial and legal matters. Consider naming a backup executor in case your first choice can’t serve. Discuss this responsibility with your chosen person beforehand to ensure they’re willing.
- Select Guardians for Minor Children: If you have kids under 18, name someone who should raise them if both parents die. Choose people who share your values and have the resources to care for children. Again, discuss this with your chosen guardians first.
- Draft the Will Document: Use online platforms, legal software, or hire a lawyer depending on your situation’s complexity. Ensure the document includes all required legal language for your province. Be clear and specific in your instructions.
- Sign With Proper Witnesses: Most provinces require two witnesses who aren’t beneficiaries in your will. All parties must sign in each other’s presence. Some provinces allow notarization instead of witnesses. Follow your province’s specific requirements exactly.
- Store the Will Safely: Keep the original in a secure location like a bank safety deposit box or lawyer’s office. Give copies to your executor and key family members.
How long does it take to make a will
The time required to create a will depends largely on your chosen method and situation complexity.
Online platforms offer the fastest option, with most people completing their wills in 30-60 minutes of focused work.
Simple wills through lawyers can take 1-3 weeks from initial consultation to final signing. This includes time for the lawyer to draft the document, your review, any revisions, and scheduling the signing appointment.
Complex wills may require several months to be done right. Business owners, people who own more than one property or anyone who needs tax planning requires a lot of preparation.
Several sittings with attorneys, financial consultants, and accountants further stretch the process. Information gathering and making decisions are normally the longest stage in the will-making.
Inventorying assets, deciding who should be the beneficiaries, as well as executors requires a lot of considerations. Some individuals take weeks to consult with family and friends as well as consultors.
How do wills work
Wills become active only after you die, starting a legal process called probate in most cases. When you die, your executor files your will with the provincial probate court.
The court verifies the document’s validity by checking signatures, witnesses, and legal requirements. This process takes about 4 to 8 weeks. Once validated, your executor gains legal authority to access your accounts, sell property, and distribute assets.
They must inventory everything you owned, pay all debts and taxes, then distribute remaining assets according to your will’s instructions. The probate process includes public notice periods allowing creditors and potential challengers to come forward.
The transparency involved protects everyone involved but means your will becomes public record that anyone can view. Not all assets go through probate.
Joint bank accounts, life insurance with named beneficiaries, and registered retirement accounts with designated recipients transfer directly. These beneficiary designations override will instructions, so keep them updated.
Your executor has some huge responsibilities including filing final tax returns, maintaining estate assets, and communicating with beneficiaries.
This job can take 6 months to 2 years depending on estate complexity. So it is advisable to choose someone who is capable of handling these duties.
What are the best will platforms in Canada
Several online platforms serve Canadian will-making needs, each with different strengths and pricing structures. Here’s how the top options compare:
| Platform | Cost | Features | Support | Storage |
|---|---|---|---|---|
| LegalWills | $39.95-$199.95 | Comprehensive questionnaire, multiple document types, unlimited updates for 1 year | Email support, extensive FAQ | Cloud storage, printable documents |
| Epilogue | $139-$399 | Simple interface, lawyer review option, estate plan package | Phone and email support, lawyer consultations available | Secure cloud storage, executor access |
| Willful | $99-$249 | User-friendly design, joint will options, power of attorney included | Chat and email support | Digital vault, family sharing |
| FormalWill | $49.95-$149.95 | Basic will creation, simple questionnaire, quick completion | Email support only | PDF download, no ongoing storage |
What happens after you make a will
Creating your will is just the first step in proper estate planning. Several important actions ensure your will works effectively when needed.
- Keep Your Will Safe: Store your original will in a secure, accessible location. Many people use bank safety deposit boxes, but ensure your executor can access them after your death.
- Inform Important People: Inform key people about your will’s existence and location. Your executor should know where to find the document and understand their responsibilities. Consider giving copies to adult children or other trusted family members, but keep the original.
- Review and Update Regularly: Review and update your will regularly. Major life events like marriage, divorce, births, deaths, or significant financial changes require will updates. Even without major changes, review your will every 3-5 years to ensure it still reflects your wishes.
- Update Beneficiaries: Keep beneficiary designations current on life insurance, retirement accounts, and other financial products. These designations override will instructions, so outdated information can defeat your estate planning goals. Review these annually when you review other financial documents.
- Create Additional Documents: Consider creating additional estate planning documents. Powers of attorney for financial and healthcare decisions are important if you become incapacitated. Living wills or advance directives guide medical care decisions. These documents work together with your will for all round protection.
- Keep Family in the Loop: Communicate your wishes to family members when appropriate. While you don’t need to share all details, explaining your reasoning can prevent surprises and conflicts after your death.
How to change a will
The method you choose when changing a will depends on the extent of changes needed. For minor changes, use a codicil – a separate document that modifies specific will provisions.
Codicils must follow the same signing and witnessing requirements as original wills. However, multiple codicils can create confusion, so limit their use to simple changes like updating executor names or small bequest modifications.
Major changes usually require creating an entirely new will. This approach takes away the confusion and ensures all provisions work together properly. New wills explicitly revoke all previous wills and codicils to prevent conflicts between documents.
Never make handwritten changes directly on your will. These modifications, called interlineations, are usually invalid and can void your entire will in some provinces. Always create proper legal documents for any changes.
Online will platforms often include free updates for a period after initial creation. Take advantage of these services to keep your will current. If you used a lawyer originally, they might offer reduced rates for updates to documents they created.
Review your will after tax law changes or new estate planning strategies become available. What worked five years ago might not be optimal today, especially for larger estates that face significant tax implications.
