Why is estate planning so crucially important? Well let’s talk about Bob.

            Bob and Dianne met in school in the early 1980s and got married. They had three children and built a life for themselves in Whitby, with Dianne working as a teacher and Bob running his business. As the business grew, Bob and Dianne started to indulge themselves a bit more - nicer cars, nicer vacations, a large cottage, a boat, and a place down in Florida for the winter.

            Bob thought he was on top of the world, except his relationship with Dianne began to fall apart. As the kids grew up and left home, Bob spent more time at the office and less time at Dianne. They began fighting, and realized that they were growing apart. They tried saving the marriage, but ultimately it was beyond repair. The two quietly separated, and while they tried to stay on good terms at first, things turned bitter quickly.

            That bitterness unfortunately extended through Bob’s kids. Bob had 2 sons, one of whom had worked in the business, and a daughter he adored. While his sons stayed loyal to him and tried to keep the peace, his daughter ultimately blamed him for not trying hard enough to keep the family together. Their relationship was strained, with Bob trying hard to make amends and her refusing. He kept offering to buy her anything that she wanted as a last ditch effort, but she refused to listen.

 Divorced and alone, Bob tried to date and keep amongst a vibrant social circle, Bob was ultimately alone. One night while watching the game he felt a strong pain in his chest, and called 911. By the time paramedics got him to the hospital, it was too late.

Bob’s estate

            When Bob died, his children had no idea what to do next. Bob was still young and active, and so he had not spoken with any of them about his affairs. His son had only just started working with him, but he kept him out of closed-door meetings in the business, hoping he would work his way up a few more years before he started bringing him into his affairs.

            The children knew that Bob and Dianne had a close friend who was a lawyer, but when they spoke with him, he informed them that Bob had never made a Will. He had been bugging Bob for years offering to help, but Bob didn’t want to think about his mortality so he kept putting off the conversation.

            The children put their heads together and started to list what they knew Bob had. They assumed that he owned his condo, and that he still had a nice car. He had sold the cottage a few years ago, but they weren’t entirely sure what happened to the money. They also had some memories of Bob dealing with various bankers and financial planners through the years, but they didn’t have any details.

            As the days went on, things only got more complicated. Bob’s son who worked in the business had questions, but he didn’t know what the ownership of the business looked like or whether he now had control of his father’s share of the company. He knew the answer had to be somewhere, but he wasn’t even sure where to turn to or who to ask.

            Then Bob’s friends started coming out of the woodwork. A few of his old buddies began calling the kids and saying that Bob had promised them certain pieces of art that they had always had their eye on, or another friend who said that Bob had spoken about wanting to leave them his boat. The calls sounded sincere, but the kids quickly grew suspicious about whether everyone was just trying to get their hands into their pockets.

            All of this could have been avoided if Bob had listened to his lawyer and done some estate planning.

Where estate lawyers can help

            Had Bob listened to his lawyer friend, he could have written out a proper estate plan. This would have spelled out exactly what his assets were, and who would get access to them. A lawyer could have offered advice on everything from his real estate properties to his vehicle to his art collection.

           A lawyer would also have helped Bob draft a proper Will that spelled out exactly who he wanted his executor(s) to be, whether it was one of his children or even a friend to avoid any infighting. They also could have discussed strategies for avoiding probate to minimize the tax burden on his children and any other beneficiaries.

            When you die without a Will in Ontario there are rules about who inherits your estate, but things are rarely that simple. A proper estate plan lets you take full account of what you have, and lets you decide while you’re still here where you would like everything to go. It can also help minimize tax burdens on your heirs, and set up trusts for any disabled family members, or those who may need money at a later date.

            A lawyer could have also helped Bob sort out his business affairs as well, including the ownership of his portion of the business. For business owners, it can be beneficial to have two distinct Wills - one to cover your business interests, and one to cover your personal assets. A lawyer can help you determine what makes the most sense in your situation.

Don’t be like Bob! Let us help you sort out your affairs while you’re still calling the shots. November is Make A Will Month, and there’s no time like today to get started. Contact us today to set up an appointment.