March 21, 2019

Archives for March 2018

Will Distribution Age

AGE AT TIME OF INHERITANCE MATTERS

If you do not specify the age(s) at which your children are to receive an inheritance from you, they will receive it at age 18. Very few children have the maturity to handle a significant inheritance (or any form of inheritance) at age 18.

You can specify at whatever age you want your children to receive the money. You can also provide for a graduated distribution with the inheritance being paid out at multiple ages. For example: [Read more…]

Security Bond for Statutory Guardian

STATUTORY GUARDIAN – SECURITY BOND

The Public Guardian & Trustee (“PGT”) of Ontario becomes the statutory guardian of any person in Ontario who becomes incapable without having a Continuing Power of Attorney for Property. It is possible for someone (usually a relative) to apply to replace the PGT and become a substitute guardian. [Read more…]

Exceutor’s Authority and Responsibilities – How much?

G+G King of the Castle

HOW MUCH AUTHORITY DO EXECUTOR’S REALLY HAVE?

The authority of an Executor or Estate Trustee comes from the wording of a Will (if there is one), the various Estate Administration Statutes and previous cases that have been decided by Courts.

Estate litigation is rampant in Ontario these days. A trend that seems to be developing is a perception by Executors that they have complete authority to make decisions in relation to the Estate regardless of what the Will says and regardless of what their other legal obligations are. [Read more…]

Options After the Death of a Spouse: Equalization

EQUALIZATION AFTER DEATH OF SPOUSE IS AN OPTION

A Spouse has options to ensure that they receive appropriate financial support from the Estate of their deceased Spouse.  When a spouse dies, the surviving spouse does not necessarily have to accept whatever the deceased spouse has left them in their Will, particularly if the amount appears unfair. [Read more…]

Are Joint Accounts part of an Estate?

ARE BANK ACCOUNTS PART OF THE ESTATE ASSETS?

It is not uncommon for parents to make their bank accounts joint with one or more of their children. This is particularly so when the parents are quite elderly.

When an account is owned jointly, it typically passes to the surviving account holders on the death of another account holder. In that case are the surviving joint account holders entitled to keep that money themselves or does it form part of the deceased account holder’s estate? [Read more…]

Estate Accounts need to be kept in a specific format

FORMATTING ESTATE ACCOUNTS

Executors of estates are required to keep detailed accounting records. These records include:

• Original assets of the estate;
• All capital and revenue received by the estate;
• All capital and revenue paid out by the estate;
• All investments made on behalf of the estate;
• The current assets of the estate at any point where the executor is having the accounts approved by beneficiaries. [Read more…]

Treatment of CPP Death Benefit by the Estate

CPP DEATH BENEFIT AND HOW THE ESTATE NEEDS TO HANDLE IT

If you have contributed to the Canada Pension Plan (“CPP”), you will be entitled to a CPP death on your death. The amount of the death benefit will depend on the number of CPP credits you have accumulated. The current maximum death benefit is $2,500.00.

The CPP death benefit is income to the estate and taxable as such (believe it or not). It is also an estate asset on which executor’s compensation is payable. It will also be included in the value of the estate for the purposes of distribution among the beneficiaries. [Read more…]