How Wills and Estate Planning Impact Your Homeownership

For most Canadians, a home is the single largest asset they will ever own. That’s why your estate plan and your will should always consider how your property will be handled after you pass.

A well-prepared will can ensure that your home transfers to your intended heirs, while the absence of a legal will can leave important decisions up to provincial intestacy laws, which may not align with your wishes.

Does How You Take Title Matter?

When you purchase a home, how you take title has long-term implications for your estate.

• Joint Tenancy: The surviving owner automatically inherits the property when one passes away. This is the most common choice for married couples.
• Tenants-in-Common: Each owner holds a specific share of the property and can will their portion to someone else. This arrangement is often used for blended families or investment properties.

The form of ownership you choose also determines whether your property must go through probate after death. Read more about the probate process in Durham Region for property here. How you choose ownership can be an estate planning tool.

Does a Relationship Status Matter When Purchasing a House?

In Ontario, your legal relationship status has a significant effect on what happens to your property after death.

Married spouses have clear inheritance rights under Ontario law. However, common-law partners are not treated the same way. If a common-law partner dies without a will, and without naming their surviving partner as a beneficiary, the surviving partner is not automatically entitled to any part of the estate. Instead, assets are divided among the deceased’s children and other family members.

This is why estate planning is crucial for common-law couples. A properly drafted will ensures that your partner is protected and your shared home remains with the person you intend.

 We have more estate planning tips for common-law partners here.

Why Shouldn’t You Add Your Child to Your Home’s Title?

It’s understandable why some homeowners consider transferring their property to their children during their lifetime. On the surface, adding a child to title as a joint tenant might seem like an easy way to transfer ownership after death and avoid probate.

However, this approach often causes more harm than good. Here’s why we always advise against it:

• Your child’s financial issues — such as divorce, bankruptcy, or lawsuits — could put your home at risk.
• Family conflicts may arise if only one child is added to title.
• You’ll need your child’s consent to refinance or sell your own home.
• There may be tax consequences, including potential capital gains.

If your goal is to simplify the transfer of your property, there are safer and more effective estate planning tools available.

Final Thoughts

Thoughtful estate planning protects both your property and your loved ones. By coordinating your will, title ownership, and beneficiary designations, you can make sure your home is transferred smoothly and according to your intentions, giving you and your family peace of mind.

The information provided in this article is meant to inform and to educate. We strongly recommend that if you have legal questions relating to wills or estates, please reach out to a trusted lawyer for advice.

If you are in the GTA or Durham Region and are looking for an experienced estate lawyer to help with your estate decisions, McMurter & Associates has the experience to help you succeed.

To connect with a member of our firm, send us an email at info@mcmurter.com or call us at 1-800-756-7138 or 905-666-9200 to schedule a consultation.