New Ontario estate planning legislation came into effect on January 1st of this year (2022). Are you up to speed on exactly what these changes are and what they mean?
These new changes were made to help simplify the estate planning process. Changes will affect the validity of wills after marriage, property rights of separated spouses, and wills with technical errors. In this blog, we will also look at the legislated changes and the virtual witnessing of wills.
Marriage no longer revokes a willLaws have been repealed that affect the validity of pre-existing wills by marriage. Previously, wills were automatically revoked when citizens of Ontario got married. However, as of January 1, 2022, wills will continue to be valid after marriage and will no longer be revoked.
Anybody married before January 1, 2022, is subject to old legislation. This means that they are deemed as not having a will unless a new one was made after or in contemplation of marriage.
Separated spouses no longer have property rights
Previously, an ex-spouse could apply for part of their deceased spouse’s estate if they were separated but not divorced. Under new laws, separation will now be treated the same as divorce. That means former spouses who are separated or divorced no longer have property rights should their spouse die with or without a will, nor will they be appointed the executor of the will.
Separated spouses include spouses who were living separate and apart at the time of death and who:
- Had been living separate and apart for three years due to a breakdown in marriage prior to the date of death.
- Had a valid separation agreement.
- Had a court ordered settlement agreement.
- Had a family arbitration award.
Wills with technical errors can now be saved
New laws are adding more flexibility when determining the validity of wills. Wills will now be looked at for substantial compliance on a case-by-case basis to determine whether they will be valid. This will reduce the number of wills that are overturned due to technical errors.
Virtual witnessing of estate planning documents
Virtual witnessing of estate planning documents, including wills, is now legal on a permanent and ongoing basis. This is done through audio-visual technology. While this law technically came into place for wills made on or after April 7, 2020, it is important to mention.
It is also important to note that one witness must be a licensed lawyer or paralegal.
By ensuring your estate planning documents reflect the latest in estate planning law, you can feel confident that your wishes will be carried out as documented.
Speaking to a knowledgeable team of chartered professional accountants can help minimize financial risks and ensure you make informed estate planning decisions. At Koroll & Company, we can guide you through the complex process of getting your financial affairs in order and help you to design your estate in a way that protects your wealth while also ensuring that your business, and other assets, are transferred to your intended beneficiaries, with minimal tax liabilities.
