Drafting a will that will hold up in court and minimize any
potential legal challenges generally involves a lawyer.
and laws apply, which determine how an estate will
be settled.
Estates are governed in Alberta primarily by the
Alberta Wills and Succession Act. There is other
legislation, including the Dower Act, which may at
times come into play. In general, however, if you die
without a will — ‘intestate’ — you should consider
the following:
1. Administration – The Estate Administration
Act outlines a list of persons who can apply to
be administrators of your estate, but ultimately
it is the court that decides. If no one comes
forward, the courts can grant the function to
a government designate. This process can be
time-consuming and costly. The person whom
you may have preferred may not be appointed.
2. Distribution – You don’t have any say in who
will receive your property and in what manner
it will be divided up. The actual distribution
under the law may be much diff erent from
what you would have preferred. You may
have wanted to leave something for an old
friend or to long distance relatives. There is
no opportunity to identify specifi c persons
to whom you would like to distribute a
portion of your estate if you die intestate.
3. Delays and added costs – The bureaucracy and
court fi lings involved can lead to substantially
longer time in settling an estate and to added costs.
4. Tax planning – Taxes will be assessed according
to law without any signifi cant advance
opportunity to reduce them or put in place a
mechanism to cover them off completely.
5. Philanthropy – You may have valued a special
organization’s work during your lifetime and
want to show your appreciation with a fi nal gift
or donation. No one will be able to specify any
gifts or donations if you die intestate. Gifts and
donations often provide valuable tax planning
opportunities.
6. Retention – Certain trusts can guard against
inheritances being paid outright and can
negate a situation where funds are scooped up
by creditors, an ex-spouse, or children with
irresponsible spending habits.
7. Children – Depending on the size of your estate
and whether you have a living spouse or an adult
interdependent partner, your natural children
may, in some instances, not receive anything.
8. Grandchildren – There is no certainty that any
of your grandchildren would ever receive any
portion of your estate. It would be up to your
living children (if they received a portion of
your estate) to decide how their inheritance
would be distributed.
What is important to take away can once again be
attributed to Benjamin Franklin and his adage that
“an ounce of prevention is worth a pound of cure.”
Creating a will gives a person more control over
what’s going to happen with their property when
they are gone. ●
For Further Study
“Wills in Alberta.”
alberta.ca/wills-in-alberta.aspx
Van Cauwenberghe, Christine. Wealth Planning
Strategies for Canadians 2016. Toronto: Thomson
Reuters, 2015.
With thanks to Makay Caskey CPA, CA, and
Paul R. Foisy, Barrister and Solicitor, for review
and input.
news&views AUTUMN 2018 | 47