Do you have a current Will in the event of your death? According to a recent Angus Reid poll, more than half of Canadians do not. End of life planning is not something people generally like to think about and many are under the impression that estate planning is only needed once they have children. Here’s why it’s important to put a Will in place when you buy a home.
 

If you die without a Will in Alberta, what happens to your property is governed by 2010 legislation called the Wills and Succession Act. When a person passes away without a Will, it’s said that they “die intestate” and the Wills and Succession Act is subsequently used to determine how their property will be disposed of.
 

Completing a Will means taking the time to really think about difficult topics, from funeral arrangements to who will care for your dependents. Deciding what should happen to your belongings is a critical component and this includes your house. Do you want to ensure that your spouse has sole ownership of the family home? Is there another real estate property that you would like to leave to one of your children? A Will is a formal record of how you want your estate dealt with. It requires you to appoint an Executor who will take charge of carrying out your wishes. Otherwise, the court will appoint someone to make the decisions for you and, chances are, they may not be ones that you would have wanted.
 

Having a Will may be necessary to make sure that there’s no disruption for your spouse when it comes to living in the home you have shared together. Under Alberta law, if you’re married, your legal spouse is entitled to your whole estate. This is true also for an unmarried surviving partner when you have children together. However, this changes when step-children are involved. For example, if you have children from a previous marriage your spouse may only be permitted to receive 50% of your estate while the remaining value of your estate is divided equally between your children. If your child has predeceased you, their share is passed along to any grandchildren. As you can see, depending on the circumstances, these rules may adversely affect or at least cause great inconvenience to the surviving spouse at a time when they have enough to contend with.  
 

When you die without a Will, your assets are frozen until any claims by creditors and outstanding bills are settled. In other words, your spouse or other dependents will not be able to access any financial accounts that are in your name. This becomes problematic if monies are required, for instance, for property maintenance or to pay the mortgage. A bank will only release funds with the proper paperwork from a court. The process of distributing your assets with a court-appointed administrator involved can be complex and very time-consuming.
I hope this has provided some insight into why a will goes hand in hand with homeownership. If you want a good reference, the Alberta government website has valuable information about making Wills in the province.