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What Happens If You Die Without a Will? |
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Learn what the legal implications are if you die without a will in this short article.
When a person dies without a will, the law determines how his or her assets are distributed. Each province has its own law that determines this. For example, in British Columbia, the law is called the "Estate Administration Act".
The exact distribution of property will vary depending upon which provincial law is applicable. Generally, if the person had a spouse and children, the property will be divided up amongst them. For example, in British Columbia, the first $65,000 of the property goes to the spouse together with a life interest in the "matrimonial home" (the place where the deceased and the spouse lived). Of the excess, if any, half goes to the spouse if there is one child or a third goes to the spouse if there is more than one child. The remainder is split equally amongst the children. If there are no surviving children or spouse, the estate will be divided amongst various classes of relatives. The estate will go to the government if no relatives can be found. It should also be noted that since the deceased will not have appointed an executor, a court will have to appoint an administrator for him or her. This will normally be one or more of the deceased's beneficiaries under the law.
In summary, the problems with this are: - the deceased person will not have expressed his or her wishes as to the distribution of property - the law may be far removed from the owner's real wishes;
- the property owner cannot choose a personal representative - someone may be appointed with whom the owner would not have been happy;
- a court application (with accompanying expense) is necessary for the appointment of the personal representative;
- there is no possibility for tax planning measures; and
- there is no provision for specific measures aimed at minors or others who may not be competent to handle the property that they are to receive.
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