What could the late, great musicians Prince and Aretha Franklin possibly have in common with 50% of wealthy Canadians?
Prince died April 21, 2016 with a $200 million estate… and no will.
Aretha Franklin died August 16, 2018 with an $80 million estate… no will.
Shocking! I know, right?
You can find many more high-profile celebrities who built up their fortunes and died without wills, some who were disturbingly young. Remember Kurt Cobain? He died 25 years ago, April 5, 1994, at age 27 from suicide with an estate in the millions, without a will.
In a report released by RBC, 46% of the people they surveyed (across Canada, the US and the UK) had no will. An Angus Reid Poll in 2018 corroborates that number, identifying 51% of Canadians lack a proper will.
I’ve heard all the excuses: I didn’t think I needed one until I was older; I don’t want to have that conversation with my family; I start but then get freaked out thinking about my own and my loved ones’ deaths; I figured it would take up time and money so I never got around to it…
Does this sound like you? Well I guess, the good news is, everyone has default will.
In Ontario, it’s called the Succession Law Reform Act, and it outlines exactly how your assets will be dealt with if you don’t exercise your right to decide for yourself.
The bad news is, that ‘default will’ takes NO consideration of your personal values and priorities, your unique family circumstances, how your assets are held, or the causes or people that are close to your heart.
For example, your estate will be divided up amongst closest surviving relatives – let’s say your spouse and children. That’s it, leaving out any special nieces, nephews, siblings, parents, or causes. If you’re living in a common-law partnership, your spousal partner may be left in a precarious situation. Are you starting to get the picture?
Without a will, your entire estate MUST be divided according to the standard provincial legal formulas, which means liquidating everything, with little to no discretion by the assigned administrator, including the family home if necessary, to distribute the funds per the law. With little to no discretion for the administrator, taxes will likely be assessed at the highest rates. And until an administrator is appointed, debts will continue to incur interest, too.
This is why it matters: death is already devastating to the family. Imagine complicating the loss and grief by piling financial burdens on top.
As Demi McGoldrick tells us in EP 40 of I'm a Millionaire! So Now What? (listen & subscribe here): “It really boils down to the human element. What burden are they going to leave behind, and how can they alleviate that, for whomever is left to deal with their estate, however small or large it might be.”
I am telling you this because, in 1993, I sat at the dining room table with my dad. We had just lost my mom, and Dad was trying to explain what would happen to us 5 children. They had no will in place.
(You think your family conversations are hard….)
I was the eldest daughter, 19, and I decided at that moment I would never let that happen when I had my family. I wrote my first Will & Power of Attorney in 1999 when I was pregnant with my (now 19-year-old) son.
Since then, as life has changed and evolved, so has our estate plan. The people I love and trust and live close to change throughout our lives, so we have amended our wishes several times: 1999, 2003, 2012, 2017. We’ll continue to update our will as life continues to evolve.
It may not surprise you to hear that perfectly practical, perpetually pragmatic Me insisted we gift our son David the cost of setting up his first Will & Power of Attorney when he turned 18.
Happy Birthday! I know: not exciting or glamorous or particularly Instagram-worthy. But vital.
And it only took him 10 months of procrastination, a couple of conversations and one meeting to sign and finalize.
Oh, the peace of mind we enjoyed when we knew it was done… knowing that, should he join the angels before any of us expect it, we know we have room to breathe and grieve because we covered the foundations.
Intentional money management and freedom from worry are cornerstones of the Roadmap to Real Riches, and estate planning is essential at several points along that road.
Which is why, in addition to posts this month and episodes of I'm a Millionaire! So Now What? I’ve planned a series of Spring Estate Planning Seminars.
These are hands-on, practical, informational workshops to learn important estate planning considerations and strategies, so you’re prepared and use your right to make your wishes clear.
(Downtown Ottawa location details will be sent to you when you RSVP.)
RSVP here to join me for
Your power of attorney – quite possibly the most important person you will ever hire
Wednesday, April 24, 2019 | 2 - 4pm
Your executor – what you need to know before you hire yours
Wednesday, May 22, 2019 | 2:00 p.m. – 4:00 p.m.
Essential family conversations – protecting yourself and your wishes
Wednesday, June 12, 2019 | 2:00 p.m. – 4:00 p.m.
Save your spot for any of the seminars here.