4. Decide who gets what - Steps to Justice

Before your can get anything, your funeral expenses, taxes, and must be paid.

In some cases, this might mean your beneficiaries get less than what you planned or even nothing.

The most common ways to give property in a will are as:

a
a
part of the

Specific bequests and legacies

A specific bequest is when you leave a beneficiary a particular item, such as a car, piece of jewelry, or the money in a specific bank account.

A legacy is when you leave a beneficiary a specific amount of money.

After paying your funeral expenses, taxes and debts, specific bequests are given out first, followed by legacies.

Residue

The residue is the part of your that's left after the following is paid:

funeral expenses,
taxes,
debts,
specific bequests,
legacies, and
your 's fees.

This can include:

property that was not left to any beneficiary
specific bequests and legacies that were not given to a beneficiary because the beneficiary died before you

You can leave the whole residue to one person or you can divide it between 2 or more people.

Other ways to deal with property

Making a will is not the only way to decide what happens to your property. For example, you can also:

give gifts to people and organizations while you're alive
have a on investments such as a life insurance policy, benefits plan, and registered plans such as a registered retirement savings plan (RRSP) or tax-free savings account (TFSA)
own property with someone else jointly

These other ways of dealing with your property can help reduce the estate administration tax that is paid to the Government of Ontario.

The estate administration tax is also called fees.

The less property you have in your estate when you die, the lower your probate fees.

Plan for a loved one with a disability

It's a good idea to set up a Henson Trust if you want to leave property to someone with a disability.

This can be an adult who's receiving government disability benefits. Or a child with a disability who may need government benefits after they turn 18.

Once they receive the property you leave them in your will, your loved one may no longer be eligible to get government benefits like the Ontario Disability Support Program (ODSP).

If done correctly, a Henson Trust lets your loved one with a disability get property from you and remain eligible to get government benefits. A lawyer can help you set this up.