Joy Wei | Estate Planning
When you become a parent, everything changes. You find yourself thinking about car seats, childproofing, and college funds. But there’s one crucial protection many parents overlook: a will. “Everything will just go to my spouse anyway,” they think. Unfortunately, this common assumption could leave your family in a devastating financial situation.
What Really Happens When You Die Without a Will
In most jurisdictions, if you die without a will and have children, the surviving spouse doesn’t automatically inherit everything. In Ontario, Canada’s intestacy laws have their own plan for your money, and it might surprise you.
The law gives the surviving spouse a “preferential share” first – typically between $200,000 and $350,000, depending on your province. After that, the surviving spouse must share the rest with your biological and adopted children, including toddlers who can’t even tie their shoes yet.
Here’s how the math works with an $800,000 estate in Ontario:
- The surviving spouse gets: $350,000 (preferential share) + $150,000 (their share of the remainder) = $500,000
- Each of your two children gets: $150,000 (tied up until they turn 18 or 19)
That’s $300,000 less for the surviving spouse when they need it most, and $300,000 your children can’t access to help support the family.
There’s something even more important at stake. Without a will, if both parents die, you have no say in who raises your children. The courts decide based on what they think is best, which might not be the family members you would choose.
Three Ways This Hurts Your Family
The surviving spouse can’t touch the children’s money. When kids inherit money, the government holds it until they become adults. The surviving spouse might struggle to pay the mortgage while thousands of dollars sit earning minimal interest in a government account. The bureaucracy that controls these funds moves slowly and offers little flexibility for family emergencies.
The tax bill can be crushing. Without proper planning, your family might face unexpected tax consequences on various investments and assets. They could be forced to sell the family home or other important assets just to pay these bills, disrupting your children’s lives when stability matters most.
Your kids get everything at 18 or 19. Imagine your teenager suddenly controlling a six-figure inheritance. They’re legally free to buy a sports car, invest in cryptocurrency, or fund a year-long trip around the world. The surviving spouse has no legal authority to stop them, even if the family desperately needs that money for essentials.
How a Will Changes Everything
A properly written will lets you direct all assets to the surviving spouse initially, preserving tax advantages and keeping your family’s financial foundation solid. You can set up trusts that protect your children’s inheritance until they’re mature enough to handle it responsibly – maybe 25, 30, or when they finish their education, based on your properly written will.
You also get to choose who will raise your children if something happens to both parents. You can name guardians who share your values and provide instructions about how you want your children brought up.
Don’t Wait
If you have minor children and no will, every day you delay puts your family at risk. The birth of a child changes everything about your estate planning needs.
A professionally drafted will for a family typically costs less than $1,500 but could save your family tens of thousands in taxes and provide the security you want for your children. More importantly, it ensures your family is protected according to your wishes, not the government’s default plan.
Contact Lyceum Professional Corporation
Phone: 613.869.1388 | Email: joy.wei@lyceumlaw.com | Website: www.lyceumlaw.com
Disclaimer: This blog provides general information only. Consult with a qualified estate planning lawyer to ensure your plan meets your specific needs.
Declaration of Use of AI: This document was prepared with the assistance of artificial intelligence (AI) tools, which were utilized solely for the purposes of translation, paragraph organization, and structural formatting. All factual content, legal references, and information contained herein are based exclusively on true, complete, and accurate data provided by the client, as well as applicable governing laws, regulations and policies. The author affirms that the use of AI in this context complies fully with the relevant professional code of conduct and ethics in Ontario, Canada.
References:
- Estates Act, R.S.O. 1990, c. E.21.
- Estates Administration Act, R.S.O. 1990, c. E.22.
- van Cauwenberghe, Christine & Blair Evans, Wealth Planning Strategies for Canadians (2025) at ยง10.31.
