Why You Need a Will and How to Write One

Writing a last will and testament is a crucial part of estate planning.

When written correctly, a will explains how to divide your assets when you pass away.

If you die without a properly written will, the government may ultimately decide how your assets are divided.

Why you need a will (yes, you)

Certain life events can signal that it’s a good time to make a will. These include marriage, buying a house, having a child or a deterioration of your health.

Basically, as soon as you have an asset that you really value and want to ensure goes to someone you love if you pass, it may be time to write a will. Indeed, a will is the only foolproof way to ensure your possessions are divided according to your wishes once you die.

You’re not legally required to have a will, but if you die without one, it’s not your family or loved ones who will control how your assets are divided, but rather the courts.

Each province and territory has its own unique estate laws that govern how someone’s money, property and other valuables are divided if they die intestate (without a will). In fact, if you and your spouse die without a will, the courts will even decide who becomes a guardian to your dependent children.

Getting ready to write your will

Step 1: Inventory your assets

You'll want to start by compiling a full list of everything you own — including bank and investment accounts, real estate, vehicles, and valuables to insurance policies, retirement accounts, and any jointly held property.

In many Canadian jurisdictions, assets owned solely in your name (like a personal bank account, a car, or a house) typically must go through a legal process known as probate before they can be passed on.

On the other hand, some assets may bypass probate entirely. These may include jointly-owned bank accounts or property with “right of survivorship,” and financial or insurance accounts with a properly designated beneficiary (such as a life-insurance policy, a registered retirement plan, or a TFSA).

Understanding the different types of assets and listing them separately in your inventory provides clarity and will help your executor when it comes time for distribution.

Step 2: Choose beneficiaries

A beneficiary is a person or organization that receives some or all your assets after you pass away.

You can name a single beneficiary, multiple people, or even a charity, depending on how you want your estate handled.

Beneficiary eligibility rules vary by province, and some regions have estate laws stipulating that you leave at least some assets to dependent children or a spouse.

Step 3: Decide who will be your executor

The executor of a will manages a person’s estate upon their death. This person is also known as an estate representative, estate trustee, or in Quebec, an estate liquidator.

You can choose anyone to be your executor, as long as they are the age of majority in your province or territory and they are mentally capable of managing your affairs. Some jurisdictions in Canada may have additional requirements, such as that an executor must not have a criminal record or not have declared bankruptcy.

It’s common to choose a relative or close friend as an executor because it’s easier to trust that the person will act in the best interests of your estate and honour your last wishes. You will also want to select someone who is responsible, organized, and able to commit their time to managing your estate.

Proximity is a key consideration, as the executor may have to collect documents, contact beneficiaries, and meet with accountants and lawyers, all of which are easier to do if they live near your residence.

One thing to keep in mind is that, while it’s an honour to be asked to be someone’s executor, it’s also a major commitment. It can be overwhelming and stressful if the estate is complicated or if family members dispute any of the will’s instructions. So make sure the person you choose is up for the task.

Step 4: Understand probate and estate administration

Probate is the process by which that will is legally validated via a court of law in accordance with the specific regulations of a Canadian province or territory. Basically, probate demonstrates that a will is real and meets the requirements to be legally binding.

Once the court confirms that the will is legitimate and there are no outstanding disputes or legal challenges to the will, it will issue a grant of probate, and the executor will be able to begin administering the will.

Steps involved in the probate process

Probate costs

The cost of going through probate varies dramatically based on what territory or province you live in and can range from $0 to as much as 1.7% of the estate’s value. Many jurisdictions offer a significant discount or charge no fees for smaller estates.

In Ontario, for example, estates with a value of less than $1,000 are not subject to probate fees, whereas in British Columbia, estates under $25,000 pay no fees. In Quebec, there are no probate fees for wills officially prepared by a notary or lawyer.

Options for creating a will

In Canada there are several ways to write a legally-binding will.

👉 Tap into the tabs below to learn more about each one.

Always consult with a legal professional to determine the validity and sufficiency of your last will and testament, no matter how it's created.