How to Protect Your Assets for Your Children in Your Will in Ontario
For most parents, ensuring their children are taken care of after they are gone is one of the most important things they can do. Yet estate planning is something many people put off, sometimes indefinitely. In Ontario, dying without a will does not just create administrative headaches. It can mean your assets go to people you would not have chosen, your children's inheritance is mismanaged, and your family ends up in court.
This post explains how Ontario law works when it comes to protecting your assets for your children, what tools are available to you, and why having an up-to-date will is one of the most important legal steps you can take.
What Happens If You Die Without a Will in Ontario?
When a person dies without a valid will in Ontario, they are considered to have died intestate, and the distribution of their estate is governed by Part II of the Succession Law Reform Act (SLRA), which outlines the rules for intestate succession.
The rules may not reflect what you actually wanted. For example:
If you leave a spouse and children, the surviving spouse receives the first $350,000 — the preferential share — and one-third of the residue. The remainder is divided equally among the children.
If you have no spouse but have children, the children inherit equal portions of the entire estate.
Common-law partners — no matter how long they have lived with you — have no automatic right to inherit under Ontario's intestacy rules.
Beyond the question of who inherits, there is a critical issue for parents of young children: minors cannot be paid funds or transferred property until they reach the age of majority, including gifts from an estate, regardless of whether there is a will, or proceeds payable from a life insurance policy or registered plan.
For amounts greater than $35,000, a minor's inheritance can be paid into court and held by the Accountant of the Superior Court of Justice until the minor reaches the age of 18. The Accountant will invest the money at a rate to be determined dependent on current market conditions — and the returns may be less than what could have been earned if invested in the market by a trustee with professional investment advice.
In short: without a will, your child's inheritance may sit in a government account earning minimal interest until they turn 18 — at which point they receive it all at once, with no conditions attached. A will gives you control over both.
The Most Important Tool: A Testamentary Trust for Your Children
The most effective way to protect assets for your children in Ontario is through a testamentary trust — a trust created within your will that comes into effect upon your death.
A testamentary trust allows you to:
Control when your children receive their inheritance — for example, in stages at ages 21, 25, and 30, rather than all at once at 18
Control how the funds are used — specifying that money is to be used for education, housing, or other defined purposes
Name a trustee you trust to manage the assets on behalf of your children until the conditions of the trust are met
Protect against misuse — funds held in trust are generally protected from creditors and from poor financial decisions by a young beneficiary
Without a testamentary trust, an 18-year-old can receive a significant inheritance with no restrictions whatsoever. A testamentary trust lets you structure the inheritance in a way that actually serves your child's long-term interests.
Naming a Guardian for Minor Children
Your will is also the document where you name a guardian for your minor children in the event both parents are deceased or unable to care for them.
Without a named guardian, a court will make this decision — and the outcome may not reflect your wishes or your child's existing relationships and cultural connections.
In Ontario, a guardian named in a will does not automatically take over. The appointment can be challenged and must ultimately be confirmed by a court applying the best interests of the child standard. However, a clear nomination in your will carries significant weight and is far better than leaving the question entirely open.
You should also consider naming an alternate guardian in case your first choice is unable or unwilling to act.
Choosing the Right Trustee and Executor
Two of the most important decisions in your will are who will serve as your executor (the person who administers your estate) and your trustee (the person who manages any trust you create for your children).
These can be the same person or different people. When choosing, consider:
Whether the person is financially responsible and organized
Whether they understand your wishes and values
Whether they have the time and capacity to take on the role
Whether they will be fair and impartial if there are multiple beneficiaries
Whether naming a professional trustee or trust company makes more sense for a large or complex estate
A trustee managing assets for minor children may be acting in that role for 15 to 20 years. Choose carefully.
Important Changes to Ontario Estate Law — 2025
Ontario made significant changes to the Succession Law Reform Act that took effect in January 2025, which are directly relevant to parents who are separated.
Amendments to Sections 17 and 43.1 of the SLRA, effective January 1, 2025, introduced the concept of a "separated spouse." A spouse is considered separated if they have lived apart for three years, entered into a separation agreement, or are subject to a court order or arbitration award. The result is that separated spouses are now treated similarly to divorced spouses in inheritance matters.
Under the new legislation, if an individual dies intestate, their separated spouse will no longer automatically inherit a share of the estate — a significant departure from previous law, where only a formal divorce would prevent a spouse from inheriting.
Additionally, Section 17 now revokes gifts and appointments to a spouse upon separation, not just divorce.
What this means for separated parents: If you are separated and have children from that relationship, it is now more important than ever to have a current, updated will that clearly names your children as beneficiaries and sets out how their inheritance is to be managed. Do not rely on the intestacy rules to produce the right outcome — they may not, and the law has changed.
Blended Families and Competing Claims
Estate planning becomes significantly more complex in blended families — situations where one or both parents have children from previous relationships, a new spouse or partner, and perhaps children together as well.
Without careful planning, your assets may not reach the children you intend. Common problems include:
A new spouse inheriting everything and having no legal obligation to pass assets on to children from a previous relationship
Children from a first relationship making a dependant support claim against the estate if they feel inadequately provided for
Disputes between step-children and biological children over the estate
The Succession Law Reform Act allows certain dependants — including children — to apply to court for support from an estate if the deceased failed to provide adequately for them. This is a powerful claim that can override even a carefully drafted will. The best defence is a will that anticipates and addresses the needs of all your dependants.
Life Insurance and Beneficiary Designations
Your will does not govern everything. Assets that pass outside of the estate — including life insurance proceeds and registered plans such as RRSPs, RRIFs, and TFSAs — go directly to named beneficiaries and bypass your will entirely.
This creates important planning opportunities and risks:
Naming your children directly as beneficiaries of a life insurance policy means the proceeds go to them immediately — but if they are minors, the funds are subject to the same restrictions as estate assets and may be paid into court
Naming your estate as the beneficiary allows the proceeds to be captured by the testamentary trust in your will, giving you control over how and when the money reaches your children — but subjects the proceeds to probate fees
Naming a trustee for a minor child on a life insurance policy is also possible and avoids both problems — speak to a lawyer about how to structure this properly
Reviewing your beneficiary designations every time your family situation changes is essential. A designation made years ago may no longer reflect your intentions.
Keeping Your Will Current
A will is not a one-time document. It should be reviewed and updated whenever your life circumstances change, including:
The birth or adoption of a child
A separation, divorce, or new relationship
A significant change in your assets
The death of a named executor, trustee, or guardian
A child reaching adulthood and no longer requiring a trust
Moving to or from Ontario
As of 2025, separated spouses are not automatically considered beneficiaries of an estate — and new rules mean that a previously made will may be affected by separation as well. If you have separated and have not updated your will, doing so should be a priority.
Do I Need a Lawyer to Make a Will in Ontario?
You are not legally required to have a lawyer draft your will. However, a will is one of the most consequential legal documents you will ever sign. Errors in drafting, improper execution, or failure to anticipate key issues can render a will invalid or result in unintended outcomes.
A wills and estates lawyer can:
Draft a will that clearly reflects your intentions
Advise on the most effective trust structure for your children's circumstances
Help you select and brief your executor, trustee, and guardian
Coordinate your will with your life insurance and beneficiary designations
Ensure your will meets Ontario's formal requirements for execution
At Chronicle Law, we assist clients across Mississauga, Toronto, and the Greater Toronto Area with wills, testamentary trusts, and estate planning. We understand that every family is different — and that cultural values, family structure, and personal circumstances all shape how you want your estate to be handled.
If you are ready to put a plan in place to protect your children, we offer a free 15-minute consultation. Contact us at info@chroniclelaw.com or call (289) 270-9996.
