Are you living in common-law relationships? It’s time to deal with estate planning

As almost quarter of Canadian couples today are living in a common-law relationship, estate planning experts are encouraging the growing number of non-married couples to write a will in order to make sure their life partners won’t be left behind when they die.

According to Statistics Canada, the number of Canadian couples choosing common-law relationships has grown by 447% since 1981. The number reached 23%, marking the highest result among G7 countries. Meanwhile, it was only 6.4% forty years ago. Although the definition of a common-law relationship depends on where you live, Statscan sets it as a non-married couple above the age of 15 that live together.

Of course, writing a will is not the most pleasant task, but it still doesn’t take much time, says Jeffrey Behrendt, an experienced Ottawa-based lawyer.

Moreover, it can save your partner from a lot of troubles. In case things aren’t planned the way the should be, and there are problems, legal fees in court may cost you tens of thousands of dollars.

The latest poll by CIBC shows that more than half of Canadians don’t have a will. This number almost reaches two-thirds among those aged 35 to 54.

Usually, if a married person dies without a will, their spouse automatically receives a large share of their estate. Certain provinces and territories (British Columbia, Alberta, Saskatchewan, Manitoba, the Northwest Territories, Nunavut, Nova Scotia and Prince Edward Island) offer common-law partners the same or similar inheritance rights. (However, in Nova Scotia, you need to register as domestic partners in order to receive these rights.)

Meanwhile, in Ontario, Quebec, New Brunswick, Yukon and Newfoundland and Labrador (almost two-thirds of the country’s population) people in common-law relationships don’t get anything if their partner dies without a will. Certain jurisdictions do let people in such situations apply for a share of their partner’s estate in case they can prove in court that they were not only in common-law relationships, but also financially depended on their partner.

Nevertheless, even if you live in a jurisdiction where common-law and married couples are treated equally, a common-law relationship may be difficult to prove. Right now, for instance, Mr. Behrendt is working on an estate case where the children of the deceased are arguing whether their father really was in a common-law relationship when he died.

Another thing Mr. Behrendt recommends for couples in common-law relationships is providing their partners with the power of attorney to make medical and financial decisions if you’re unable to do it yourself. Creating funeral and burial wishes is also a good idea.

At the same time, Mr. Behrendt encourages all Canadians (married or in a common-law relationship) to contact their banks and set their partners as beneficiaries for registered retirement savings plans and tax-free savings accounts. It will deprive you of extra taxes.

Please, whenever you need a legal help, contact a licensed professional or reliable lawyer!

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