An ineffective Estate Plan could give too much money to the taxman, and not enough to your beneficiaries.
Are you making the right decisions? Take this short quiz to find out.
In a rush? To get the answers now, click here.
1. I need a Lawyer to make a will.
True or False?
2. Common-law spouses automatically inherit their partner’s Estate in Ontario.
True or False?
3. I own everything jointly with my spouse or children so I don’t need a Will.
True or False?
4. I cannot appoint a guardian for my children in my Will.
True or False?
5. I left everything to my children in my Will and remarried. I still want my children to receive my entire Estate. I do not need to make a new Will.
True or False?
6. I can change my Will by initialing the changes on the original documents.
True or False?
7. My spouse is eighty-two and is ill. To avoid probate taxes, I can make all my assets jointly owned with my children.
True or False?
8. I am the Executor or Estate Trustee in a relative’s Will. I do not have to use my own money to pay the relative’s debts except income taxes.
True or False?
9. We have a legal “first-aid” kit with Wills, Powers of Attorney for Property and for Personal Care. We don’t need to do anything else to protect our loved ones.
True or False?
10. I gave my new spouse an unrestricted Power of Attorney For Property. My spouse cannot use this Power of Attorney until I am incapacitated.
True or False?
Your Wills & Estate IQ Quiz Results
The correct answer to all questions is actually False. Here’s why…
1. I need a lawyer to make a will.
Correct Answer: False
You can make your own Will without a Lawyer but it’s very risky.
Do it yourself Wills are frequently challenged in Court. Your Beneficiaries may later spend thousands of dollars each day in Court, only to find out your Will is invalid.
Only Lawyers trained in Tax, Trust, Property, Family, Will and Estate Law are qualified to give legal advice and opinions on Wills.
2. Common-law spouses automatically inherit their partner’s Estate in Ontario.
Correct Answer: False
In Ontario, only married spouses automatically inherit. Common-law spouses must be named in a will to inherit an Estate. Every province is different for Estate purposes.
If you are a common-law spouse without a Will to protect you, you must hire a lawyer to claim support or property in costly legal proceedings.
3. I own everything jointly with my spouse or children so I don’t need a will.
Correct Answer: False
What if the other joint owner dies first? You need a Will, or the government will write one for you that you may not like. Your Estate then passes only to certain blood relatives.
Unless you write your Will, the people you love, charities and friends cannot inherit or benefit.
4. I cannot appoint a guardian for my children in my Will.
Correct Answer: False
Parents can only name a Guardian by making a Will. The Will also specifies how and when children will receive their inheritance.
5. I left everything to my children in my Will and remarried. I still want my children to receive my entire Estate. I do not need to make a new Will.
Correct Answer: False
When you marry, all prior Wills are automatically revoked in most jurisdictions including Ontario. To avoid this, your Will must state it was made when you have a wedding date or you must make a new Will
6. I can change my Will by initialing the changes on the original documents.
Correct Answer: False
Never write on your Will. Alterations can invalidate your Will even if you and your two witnesses also sign in front of each other. A Codicil or Amendment to your Will is the best way to deal with minor changes.
7. My spouse is eighty-two and is ill. To avoid probate taxes I can make all my assets jointly owned with my children.
Correct Answer: False
If you jointly own assets with your children, you must consider these dangers:
• Claims by children’s creditors or a spouse (in a divorce) could erode these assets;
• Because decisions must be joint, you lose control of the assets;
• A child’s refusal to cooperate could delay access to the assets indefinitely;
• There may be income tax consequences from the transfer of assets
8. I am the Executor (or Estate Trustee) in a relative’s Will. I have to use my own money to pay the relative’s debts, except income taxes.
Correct Answer: False
Executors are responsible for paying all bills including income taxes, but only from actual Estate assets. They don’t have to use their own money.
9. We have a legal “first-aid” kit with Wills, a Powers of Attorney for Property, and a Power of Attorney for Personal Care. We don’t need to do anything else to protect our loved ones.
Correct Answer: False
Your “first- aid” kit is basic protection only, and only if it is up to date. Don’t forget other steps that impact your Estate. You will also need advice to reduce probate and income taxes for your loved ones, and to properly designate beneficiaries.
10. I gave my new spouse an unrestricted “Power of Attorney For Property”. My spouse cannot use this Power of Attorney until I am incapacitated?
Correct Answer: False
This is one of the biggest misconceptions about Powers of Attorney for Property. If you want anyone to have restricted power over your property, you must specify these terms in your Powers of Attorney for Property document.
Otherwise, once the unrestricted document is signed, it becomes as dangerous as a loaded gun.
I hope you enjoyed this Wills & Estate IQ Quiz.
Contact my law firm to arrange for a consultation or appointment to review your needs.
