Blackburn Lawyers
May 28TH, 2022
If you have multiple wills that purport to deal with the same asset in different ways, only one will be found valid and given effect after your death. Generally, when you prepare a second will, it replaces the first (older) will. If your will is prepared by a lawyer, it will contain words to the effect that it replaces any previous wills. However, if done properly, multiple wills may be used strategically for estate planning purposes.
Benefits of Having Multiple Wills in Ontario
When is the multiple will strategy used in Ontario? Generally, there are two reasons:
- When the testator has assets in different jurisdictions (other provinces or countries), it is often easier to have a will for each jurisdiction. That way, each will can be prepared by a professional who practices in the relevant jurisdiction, and the probate and distribution of the estate may often be simpler and less expensive. For instance, your primary will might deal with your Ontario assets, and a secondary will might deal with the condo, bank account and vehicle that you own in Arizona, where you spend the winter.
- In some situations, multiple wills can be an effective mechanism for reducing probate fees. Probate fees are calculated based on the total value of your estate, but not everything needs to be probated. Shares of a business are one example of an asset that generally does not need to be probated, but that might be very valuable. By dealing with the distribution of the shares under a different will, you can minimize probate fees. In this case, your primary will would deal with the assets that need to be probated, such as real estate, and your secondary will would deal with those that do not.
An allocation clause in your wills can authorize your executors to determine, after your death, which asset is dealt with under which will.
Find out how to ensure that your multiple wills distribute your estate according to your wishes…
If not carried out properly, having multiple wills can force your executors or beneficiaries to seek instructions from the court, which can be disappointing if your intention in having multiple wills was to save your loved one’s time and money. Ambiguity in an allocation clause may result in the court overriding your wishes.
Blackburn Lawyers, Richmond Hill
