You Don’t Need a House to Need an Estate Plan

You Don’t Need a House to Need an Estate Plan

Why Young Adults in Ontario Should Have an Estate Plan — Even in Their Twenties

Back in 2019, I wrote about why having an Estate Plan is relevant for younger adults. Seven years later, the message is more important than ever, and yet the numbers haven’t moved much. Only about 18% of Canadians aged 18 to 24 have a will, rising slightly to 23% for those aged 25 to 34. That means the vast majority of young adults are leaving some critical decisions to chance or to the Ontario government.

The most common reason I hear? “I don’t own a home, so I don’t really have an Estate.”

I’d like to gently push back on that.

You probably have more of an “estate” than you think

Your Estate isn’t just real property. It’s everything you own. That TFSA you’ve been building, the RRSP you started last year, the car, the savings account, the laptop, the investment app on your phone. And increasingly, it includes something most people forget entirely: your digital life.

Digital assets are a new class of assets that require pre-planning for beneficiaries to benefit from the intentions of the person passing them on. You must plan ahead for digital assets with financial value to ensure their discovery, security, and transfer to the appropriate beneficiary.  That includes everything from cryptocurrency and online brokerage accounts to subscription services, cloud storage full of photos, and even social media accounts.

You’ll want to leave instructions, passwords, or make adjustments to any legacy access settings offered by the platforms you use, like Google’s Inactive Account Manager or Apple’s Legacy Contact feature. Without a Will directing your executor, none of this happens smoothly.

Who gets your stuff if you don’t decide?

If you die without a Will in Ontario, the province’s Succession Law Reform Act decides. And the formula it applies may surprise you.

If you’re in a common-law relationship, which many young adults are, your partner gets nothing automatically. Common-law partners are not recognized as a “spouse” under Ontario’s intestate succession rules, leaving them potentially without any claim to their partner’s Estate. Everything would flow to blood relatives instead, regardless of how long you’ve been together or what you intended.

If you’re single with no children, your assets go to your parents. If your parents are no longer living, they go to your siblings. It follows a rigid hierarchy that leaves no room for the person who actually matters most to you, whether it’s a partner, a close friend, or a favourite cause.

It’s not just about money — it’s about who makes decisions for you

Young adults often overlook this: what if you’re alive but can’t speak for yourself?

An accident. A sudden illness. In the event of a medical emergency, you may find yourself unconscious. In Ontario, without a Power of Attorney for Personal Care, the hospital won’t automatically turn to your partner or your best friend. They’ll follow a statutory hierarchy, which may not reflect your wishes at all.

A Continuing Power of Attorney for Property works the same way: without one, nobody can access your bank accounts, pay your rent, or manage your finances while you’re incapacitated. A Power of Attorney for Property manages financial matters, while a Power of Attorney for Personal Care makes decisions about healthcare and personal well-being. Both documents are essential parts of any Estate Plan, at any age.

What about student debt and other debts?

A common worry I hear from younger clients is, “What happens to my student loans if I die?” The good news is that in Ontario, your debts don’t automatically become your family’s problem. Your Estate is responsible for settling debts from whatever assets exist, but if there’s nothing left after that, creditors generally cannot come after your family members unless they co-signed. That said, having a Will makes it far cleaner for your executor to navigate the process.

Young parents: the stakes are even higher

If you have children, even young ones, the calculus changes significantly. Without a Will, the courts will decide who raises your child, without your input. Ontario law doesn’t automatically give decision-making responsibility to your parents, siblings, or even a specific side of the family. 

A proper Estate Plan can set up trusts for your children, deciding at what age they receive funds, appointing a trusted person to manage those funds, and ensuring the money is used for education, housing, and well-being. Without that, a teenager could receive a lump sum inheritance the moment they turn 18, regardless of whether they’re ready to manage it. 

Estate Planning isn’t a morbid exercise for the wealthy and the elderly. It’s a practical act of care for your partner, your family, and yourself. As of 2024, 54% of the population in Ontario still lacks a valid Will.  Don’t let the assumption that you’re “too young” or “don’t own enough” keep you in that group.

A basic Will, a Power of Attorney for Property, and a Power of Attorney for Personal Care can be put together relatively quickly and affordably — and the peace of mind is worth far more than the cost.

If you’re a young adult who’s been meaning to sort this out or a parent who wants to make sure your adult children have their affairs in order, I’m happy to help.

Book a consultation with Smart Wills and get a clear, legally sound plan tailored to your needs.