Estate Planning for Young Families in Ontario: Wills, Guardians and Trusts

Question 1

Why is estate planning important for young families in Ontario?

Accepted Answer

Estate planning allows parents to name preferred guardians for their minor children, decide how and when their children receive an inheritance, and appoint trusted people to make financial or personal-care decisions if they become incapable. A clear estate plan can also reduce delays, expenses and family disputes during an already difficult time.

Question 2

What happens to my children if I die without a will in Ontario?

Accepted Answer

If both parents die without naming a guardian, the court may need to decide who will care for the children. Ontario law does not automatically give priority to grandparents, siblings or either side of the family. A will allows you to name primary and backup guardians, although the court retains final authority based on the children’s best interests.

Question 3

What happens to a child’s inheritance if a parent dies without a will in Ontario?

Accepted Answer

A child who inherits without a trust will generally become entitled to the inheritance at age 18. If the inheritance exceeds $35,000, the funds may need to be paid into court unless the court appoints a guardian of the child’s property. A will can create a trust that permits money to be used for education, housing and well-being while delaying full distribution until a later age.

Question 4

Can I control when my children receive their inheritance?

Accepted Answer

Yes. A trust created through your will can provide your trustee with instructions for managing and distributing the inheritance. For example, you could provide 25% at age 21, another 50% at age 25 and the balance at age 30. The trustee may also be authorized to use funds earlier for the child’s education, health, housing and general welfare.

Question 5

What documents should an estate plan for a young family include?

Accepted Answer

An estate plan for a young family will commonly include a will, a continuing power of attorney for property and a power of attorney for personal care. Parents should also review life insurance coverage, beneficiary designations and any trusts for minor children. These documents should be reviewed after major life events such as a birth, marriage, separation, property purchase or significant financial change.

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