Why Dying Without a Will Could Leave Your Family and Business in Chaos

Imagine this: You’ve spent years building your business, securing your family’s future, and planning for what’s next. But there’s one crucial detail you keep pushing off—updating your will. Or worse, you don’t have one at all. It’s easy to think, “I’ll get to it eventually,” but what if “eventually” never comes?

A Story Too Close to Home

A close family friend recently faced a devastating situation. Her ex-husband passed away suddenly. They had shared assets, but his will was outdated and hadn’t been touched in years. As a result, she became the default beneficiary and executor—roles she never expected or wanted. The original will, now woefully out of sync with his life at his death, became the legal document that dictated the distribution of his assets. Settling his estate, which could have taken months, will likely drag on for years. And because the will wasn’t up-to-date, a significant portion of the assets are now tied up in probate, a lengthy and costly process.

This is not an uncommon scenario. In fact, 51% of Canadians don’t have a will, and many of those who do need to make significant updates. Imagine your ex-spouse ending up with your estate or business being sold against your wishes simply because you didn’t make the time to update a few key documents.

What Happens If You Die Without a Will?

If you die without a will in Ontario, the government decides how your assets are divided, based on the Succession Law Reform Act. Here’s how it typically works:

Division of Assets

Estate Value Recipient Amount Received

$500,000 Spouse $350,000 (Preferential Share) + $50,000 (1/3 of the remainder) = $400,000

Each Child (3) $100,000 (2/3 of the remainder, split equally) = $33,333 each

As you can see, the government’s formula may not align with your specific wishes, especially in complex family situations. This rigid distribution method doesn’t consider individual needs or the unique dynamics within your family. It likely would not include considerations for blended families, nor will it identify any charitable giving.

The Role of the Office of the Public Guardian and Trustee

When you die without a will, and especially if your children are minors or if there’s any other complication, the Office of the Public Guardian and Trustee steps in. This government office ensures that the estate is handled according to the law, which often means lengthy delays, additional costs, and outcomes that might not align with what you would have wanted.

The government’s involvement can prolong the process, leading to stress and uncertainty for your loved ones. The impact on your family and business could be devastating, as they might have to wait years to access what you intended for them.

The Burden of Probate

When you die without a will—or with an outdated one—a significant portion of your estate may be subject to probate. Probate is a legal process that verifies the validity of a will and oversees the distribution of assets. In an intestate scenario (dying without a will), probate can be particularly burdensome. It delays the distribution of assets and incurs additional costs, eating away at the inheritance you intended to leave behind.

For business owners, the consequences can be even more severe. Without clear instructions, your business could be left in limbo, leading to financial instability or closure. Your employees, clients, and partners could face uncertainty, and the legacy you worked hard to build could unravel.

Take Action Before It’s Too Late

The story of our family friend is a cautionary tale—a reminder that life is unpredictable and that planning for the future is essential. If you haven’t created a will or are outdated, now is the time to take action. Don’t leave your family and business in a vulnerable position. Take control of your legacy by clearly outlining your wishes in a legally binding document.

Updating or creating a will isn’t just a legal formality; it’s an act of love and responsibility. It’s about protecting those you care about most and ensuring that your hard-earned assets are distributed according to your wishes.

Resources to Get You Started

Visit the Ontario government's website for more information on the consequences of dying without a will and to understand the role of the Office of the Public Guardian and Trustee in Ontario.. I’ve formed an alliance with LegalWills.ca to express how imperative it is to have a will and no one knowingly would put their family in this situation.

Many of us have had getting a will on our list of things to do, but most do not take action. Here’s an offer from one of the original and most comprehensive online will packages.

Don’t wait until it’s too late. Take the time today to safeguard your future and provide peace of mind for yourself and your loved ones. The legacy you leave behind should be one of care, not chaos.