Estate Planning #3: Disinheritance

Do I have to leave something to each one of my kids and spouse?

In BC, pretty much: Yup.

BC has the least “testamentary freedom” in the country.  If your kid is a worthless loser, you die rich, and leave him nothing – that means us taxpayers have to support the failure you made.  OTOH: if your kid ends up rich and you disinherit her because “she doesn’t need my money” – you are punishing success.

You can leave everything to your spouse and nothing to the kids.  You can’t leave nothing to your (current) spouse and everything to your kids.  If no spouse, you must provide reasonably for each child.  Not “equally”.  As long as your different treatment seems reasonable, the court will usually accept that you know better than it does. 

If the court decides you were unreasonable, it will impose its own idea of fairness.  Typically, it divides the estate equally amongst all the children.  If one child is disabled or disadvantaged, the court may give them an extra share.  It may divide the estate in two, give the disadvantaged child one half and split the rest amongst all the rest.  Mostly the court tosses out the unreasonable Will and uses the provisions for dying without a Will.

Almost the only way you can disinherit a child is if you can prove they refuse to have anything to do with you, and it’s not your fault.  Abusing a child to the point they cut you out of their life, is not grounds to disinherit them.    That’s just abuse from the grave.

Urban Myths about disinheritance:

·         Leaving “a dollar” (or other tiny share) will prevent a challenge (No);

·         Children of ex-spouses have less rights than children with new spouses (No);

·         Someone other than children or spouses have rights to challenge the Will (No);

·         A child you didn’t want gets nothing (“But I told her to get an abortion!” -- No);

·         Your adopted child has less rights (No);

·         Your child adopted by someone else still inherits (No);

·         An ex-spouse still inherits (No);

·         Grandchildren, siblings, parents can challenge the Will (no, just spouses and children).

We’re hosting a seminar on estate planning on 12 May. It’ll be by Zoom. Stay tuned for details.