Why singles need a will before closing a home purchase

This is a difficult article to write. We have to balance the importance of the message with the delicacy of the topic. Please try not to be offended. This is reality, and sometimes we just have to deal with it.

Before you close on your new home purchase, it’s important to speak with a lawyer who is knowledgeable about your real estate deal, as well as wills and powers of attorney. This may mean that if your real estate lawyer does not have the expertise, perhaps his associate, partner or another lawyer can guide you on matters concerning your will or estate, and help you formulate a plan. At our firm, as an example Hamza Ahmad will close your deal, but Jacqueline Moneta will prepare your will and powers of attorney.

Buying a house can be stressful, but having a plan will help keep you on track and will alleviate stress. For most people, their home is their biggest purchase and most valuable asset. But, if you’re single, what happens if you pass away? Where does your house go?

I have had many conversations with survivors where there is no will and everything is a mess. You aren’t doing anyone any favours by not having a will. It is extremely important you have a will and powers of attorney.

OWNING PROPERTY ALONE

Being alone on title is common for those who are single, separated, investors, widowed, divorced or where one spouse is an entrepreneur or may be worried about creditors, and the property is in only the other spouse’s name.

Here you sit with what could be your single biggest asset, and if something happens to you, not only do you not have someone to manage your estate, but it will leave a horrible mess. If you’re sole owner on title to a property, the home will form part of the assets of your estate, and yet until someone applies to become the Trustee, everything would be in limbo. There are rules promulgated by the Government of Ontario on how property passes when you die intestate (without a will), and frankly, the process takes time, and you may not like the result of the distribution. In the meantime, who is making mortgage payments, cutting the grass and letting out your dog (oh dear!)?

Another unpleasant scenario is if you are left in a vegetative state by a serious accident, with no one to make decisions. What happens then?

Conclusion – you need a will. You need a power of attorney for health, and one for property. This is critical. You are buying a house, so you can’t mess around; spend the $600 to $900 to prepare a will and powers of attorney.

Speak to your real estate lawyer and ask if they can do your wills, so they are ready when you close on the house. Don’t wait. After 43 years of being a lawyer, let me tell you – if you wait, you won’t do it!

It is so important to work with a lawyer you trust, not only in helping you with the purchase of your property, but also in the preparation of your will and powers of attorney, so you are prepared with a plan no matter what life throws at you.