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Wills & Estates
What happens if you die in the Province of British Columbia
without a will?
If you die without a Will one refers to this as dying intestate
meaning dying without a Will or a legally valid Will. The property
of a deceased person who has died intestate goes to those persons
entitled to inherit the property according to law. In the Province
of BC the statute that deals with the devolution of the estate of a
deceased person dying intestate is the Estate Administration Act and
amendments thereto. For example, the law in BC says that a person
dying intestate with a wife and 1 child the estate would be
distributed as follows:
a. first 65,000.00 to spouse;
b. household furnishings to spouse;
c. ˝ of balance to spouse and ˝ to child;
d. life interest in matrimonial home to spouse.
It is advisable to make a Will so you
can decide who will inherit your estate.
Why is it a
good idea to make a Will?
Top 5 reasons to make a Will are as follows:
1. If you do not make a Will your money will either be distributed
to someone you may not have chosen or in portions that you do not
agree with or worst case scenario your money will be paid directly
to the Provincial Government.
Without a Will, your estate will be distributed according to a
system set up by the Provincial Government in BC pursuant to the
Estate Administration Act. If you have no heirs then your money will
go to the Provincial Government as part of its general revenue. If
you have a spouse and children not all your money will go to your
spouse but your estate will be shared between your spouse and
children. This may not be what you intended wanted and may not be
the most tax efficient way of distributing your estate.
2. No Gifts to Friends or Charities.
Without a Will you cannot benefit a certain special friend or a
Charity of your choice as they are not on the government mandated
distribution list if you
die without a Will.
3. Your children’s money will go to the Public Trustee.
Any money owing to a child will be paid to the government for them
to administer. Would you want a government organization managing
your money left to your children?
4. Distribution of your estate will be delayed and with increase
legal costs
If you do not have a Will, a court application will have to be made
in order to appoint someone to administer your estate and if
required a Guardian for your children. Court Applications can be
expensive and time consuming resulting in delay in having your
spouse or loved one receive any money from your estate.
5. No Opportunity for Proper Tax Planning
Without a Will, the government will decide how your estate is
distributed and this may not be the most tax efficient way of
distribution. Depending on the case, this may result in a larger tax
burden to your estate.
What is an
“Enduring Power of Attorney”?
An Enduring Power of Attorney is a document that when signed will
allow you to appoint someone to manage your affairs even when you
are physically or mentally unable to. It is a standard estate
document to prepared along side a Will.
What is a
Representation Agreement?
A document that allows you to appoint one or more persons to make
health care decisions on your behalf if you are unable to make them
yourself. A Representation Agreement may also contain an expression
of your wishes in the event of a terminal illness (a “Living Will”).
What is the Wills
registry?
The Wills registry is a Government of British Columbia established
registry whereby one can determine if a deceased person has made a
Will and the location of such Will.
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