Our loved ones are sometimes prone to poor decisions when it comes to money – especially inherited money. Consider the following:
Dan was a retired contractor who had built up a substantial business over his long working life. His Will provided for a smooth transition of this valuable company to his family upon his death. After Dan’s wife died, and feeling somewhat lonely, he sold the family home and moved to a beautiful retirement residence. In the new residence Dan met a lovely widow named Alice. The two became enamoured and decided to marry for companionship. Unfortunately, Dan died three months after his marriage to Alice. To everyone’s surprise it was discovered that the pair had not updated their Wills. They were unaware that the law automatically revokes (cancels) the Wills of persons who marry. Because Dan had no Will when he died, by law Alice inherited a large portion of his estate. This estate was supposed to go to his family but instead went to someone that Dan never intended it to benefit. Moreover, Dan’s plans for the orderly transfer of his business were in disarray. If Dan or his family had thought to check to see if his estate plan and Will were up-to-date either just before or immediately after he re-married the unfortunate consequences of an intended disposition of his estate could have been avoided.
Now consider Michael:
Michael’s grandparents appointed his mother, Jennifer, to be the guardian of an education fund they established for him in their Wills. Michael was six years old when his grandparents died. Unfortunately, Jennifer was not particularly well-versed in making financial decisions. Before Michael reached the age of majority the value of his fund had diminished considerably. His dreams for a Master’s degree were dashed. By making provisions for the proper management of the trust fund this sad result could have been prevented.
In both cases Wills that had been done to protect families were either out-of-date, or the planning was not sufficiently thought out to succeed.
Your Will can both provide for and protect your family, but only with thorough planning. To make sure that members of your family are adequately protected from others and themselves, contact us for a review of your estate plan.
Brief informational summaries about commercial litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.