10 Reasons to Make a Will in B.C.
If you die without a will in British Columbia...
- The distribution of your estate will be determined by the Estate Administration Act which may not be the type of distribution you had in mind.
For example, if you have a spouse and two children, the first $65,000 goes to the spouse and the remainder is divided three ways between your spouse and two children.
- No assets can be diverted to charities or friends or other relatives.
- All assets may be converted to cash (i.e. family heirlooms may be sold and the proceeds distributed rather than passing on to your family).
- A common law spouse (including same sex partners) is a spouse under the Estate Administration Act provided that they qualify by being either, a person who is united to another person by a marriage that, although not a legal marriage, is valid by common law, or a person who has lived and cohabited with another person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender, for a period of at least 2 years immediately before the other person’s death.
- If you have minor children, their share of your estate is paid to the Public Guardian and Trustee and will remain there until they turn 19. Requests can be made for funds prior to the child turns 19 but the payment is in the discretion of the Public Guardian and Trustee.
- You will not have the opportunity to choose guardians for your infant children. (If you are the custodial parent you can appoint a guardian for your children in a will.)
- The administrator of your estate may not be who you would have wanted to do the job; Anyone can apply to become the administrator of your estate but preference goes to next of kin (spouse, children, parents). If no one comes forward, the Official Administrator for British Columbia will perform the task and that may take much longer due to the number of estates they administer.
Because the appointment of the administrator must be made by the Court Order, this increases the cost and delays the appointment. Unlike an executor named in a will, an administrator may only start dealing with your estate when appointed by the Court.
- The administrator of your estate may have to post a bond to protect the assets of your estate which is an added cost to the estate. If the applicant is not bondable another person or the Official Administrator will have to apply.
- The estate can not be distributed until 1 year after your death.
- You have lost the opportunity to take advantage of tax and estate planning tools.