Vesta Advice Series – September 5, 2025

Most people I speak with understand the concept of proper estate planning but have not taken any steps towards putting an estate plan in place.  Although planning encompasses more than just documentation, there is no step more impactful than preparing a will.

The National Institute of Aging (NIA) supports this in their 2023 report: 91% of clients agreed that wills form an important component of an estate plan, and 86% agreed that having a Power of Attorney (POA) is essential as well.

However, a much smaller percentage of Canadians have taken steps towards their own estate plan.  The report notes that 36% of Canadians over the age of 55 and 66% of people in the 35-54 age range do not have a valid will.  This trend is confirmed in further detail within the report and matches my conclusions from personal and professional experience as well.

My goal in this article is not to rush you towards drafting a will tomorrow.  I believe there are plenty of valid reasons to support a temporary delay, whether they be financial, personal, or both.  Instead, I aim to arm you with knowledge to make your own decision about when to properly document your estate wishes.

What Happens When You Pass Away Without a Will?

Dying without a will is called dying intestate, and what happens next is guided by intestacy laws in your jurisdiction.  This is a good time to add in a disclaimer: Intestacy laws are governed provincially and are subject to change.  In this article, I am speaking to the existing rules in British Columbia on September 5th 2025, governed by the Wills, Estate & Succession Act.  I am not a lawyer, am not giving legal advice, and only aim to inform you on some common outcomes of passing without a will.

With that said, an important piece of information to highlight is that your estate is bound by statute law, resulting in little room for flexibility or interpretation.  One of the core goals of preparing a will is that your wishes be known.  Intestacy is impersonal and rigid, and even in cases where common sense should prevail, the law demands you follow the legislated formula exactly.

Additionally, not all assets pass through the estate and are thus not beholden to intestacy law, or even a will for that matter.  An entire article could be written on this topic alone (and likely will be,) but some more common assets that pass outside of an estate are life insurance proceeds with a beneficiary, registered plans with a beneficiary, and most assets that are jointly owned with right of survivorship.

Although the example I give below will be simple, know that there a multitude of factors that can impact the outcome and this should be considered a hypothetical situation for illustrative purposes.

The Story of Blake and Blair

Although intestacy can create numerous issues, most fall under the broad categories of asset distribution, estate administration, and guardianship. The following example is intended to showcase some common outcomes, but know that each situation is different, and individual details can vary the resulting outcomes significantly.

Consider Blake and Blair, a couple in their late 30s who have been living together for 5 years.  Blake entered the relationship with children from a prior relationship, who are now in middle school and cared for exclusively by the couple with full custody.

Blake and Blair own a home and have about $50,000 in savings.  Neither of them has a will, and hope that everything will go to their partner and then to their children if something should happen to either one of them.

Tragically, Blake passes away under sudden circumstances, and Blair is now trying to navigate what to do next.  Intestacy laws will take effect, and they will be required to adhere to these laws when settling Blake’s estate.

Administration – The first obstacle Blair would encounter is gaining the right to act on behalf of Blake’s estate.  In a will, an executor would normally be named, as well as alternates.  Without a will, however, Blair will need to apply for a Grant of Administration via the court.  The good news is that, in this case, they would have priority and likely be approved. However, they will be encumbered by significant paperwork and a delay of a few months.

Guardianship – Guardianship of minor children is governed by the Family Law Act, and complex to begin with before adding intestacy laws.  Blair is surprised to learn that they do not automatically become the guardian of the children and must make an application to the court to become appointed as a guardian.  The complications of this topic are outside the scope of this article, but childcare is an essential and often overlooked component of estate planning that can have negative outcomes with intestacy.  Although a will is not your only option to address this, a declaration in your will of whom you wish to be the children’s guardian can be an effective solution.

Assets – Asset distribution in this case should meet the couple’s goals, which is common for young families with limited assets.  This often creates an illusion of simplicity that does not carry forward as families and assets grow; this would be quite a different story if they had $500,000 in savings instead of $50,000.

Intestate distribution is formulaic and set out in the Wills and Estate Act, and I encourage you to research and consider what would happen to your assets should something happen.

This example is intended to showcase the importance of estate planning for a common scenario for Canadians in their 30s and 40s but know that there are hundreds of variations and each has its own unique circumstances.

Thank you for reading, and I hope that you have found this information helpful.  As always, should you have any questions, comments, or wish for more personalized advice, I welcome you to reach out directly.  Thank you for reading!

Resources:

Canadian Perspectives on Estate Planning

Wills, Estates and Succession Act (WESA)

Family Law Act