If you are in a second (or later) marriage/relationship, have children from earlier relationship(s), and you don’t do a proactive estate plan, upon one spouse dying there is a high likelihood of a problem arising, including possibly a court action. Similarly, one party becoming disabled or a breakdown in the relationship without adequate prior planning may result in significant problems, legal fees and delays.
The idea is to protect against the less than happy things that happen in life (death, disability, divorce – the three Ds as we like to call them), so you can focus on the positives in life.
Death: A trust, inter vivos and testamentary, is often an effective estate planning tool.
Divorce: To protect against property claims in the event of a marriage breakdown, a marriage agreement is recommended. If you live common law, then a properly drafted Co-Habitation Agreement is the way to go.
Disability: An Enduring Power of Attorney appoints someone who can manage your financial and legal affairs in the event you were unable to do so. A Representation Agreement appoints someone who can make health care and personal care decisions if you were unable to communicate your wishes.
The key thing is to plan ahead, keep the lines of communication open and get proper advice for your particular situation.
If you are included in the 50% of Canadian adults who have not made a will, let alone a proper estate plan, a windfall may go to estate litigation lawyers as they sort out family disagreements, instead to the people and causes that matter most to you. Think about whether you wish to leave that burden as your legacy.