December 14, 2019

Automatic Revocation of Wills

AUTOMATIC REVOCATION OF WILLS IS MANDATED BY LAW IN ONTARIO

There are situations where a validly drawn will can be automatically revoked with no express intention on the part of the owner of the Will. The two most common situations where this occurs are marriage and divorce.

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No Will? How do you transfer ownership of a deceased’s vehicles?

G+G Vehicle

INTESTACY AND VEHICLE OWNERSHIP

If your spouse or loved one died without a Will and left behind vehicles registered in their name only, selling them after their death can be a tricky endeavor. In order to sell a vehicle, the ownership must be signed by the registered owner. If the owner is deceased, the vehicles need to be transferred into the name of their spouse or the person handling their estate in order for the vehicles to be transferred or sold. [Read more…]

Legalese and Its Role in Your Will

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LEGALESE IN YOUR WILL – WHY?

You decide that you should have a will written to protect yourself and your assets upon your death. You decide what you want this important document to say and get lawyer to draft it. But when the Will is sent to you for your review, you are surprised to find that it is written in “legalese”—a language that can be confusing for the lay person. [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…]

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…]

Investments Under Power of Attorney

G+G POA Investments

ESTATE ADMINISTRATION – INVESTMENTS UNDER POWER OF ATTORNEY

An Attorney acting under a Power of Attorney for Property is required to be careful with investments. If the Power of Attorney for Property of the incapacitated person gives specific authority to make certain types of investments, an attorney can make those investments. Otherwise, an attorney should assume that they will be held liable by the incapacitated person or the beneficiaries of their estate when they die (even though they may not actually be liable) for any losses and invest conservatively. [Read more…]

Probate Tax – How much does it cost?

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PROBATE TAX – WHAT IS IT AND HOW MUCH DOES IT COST?

What is Probate tax? It is a provincial tax imposed on the deceased’s estate under the control of an executor or administrator.

How much will the probate tax be on an estate? Here is a simple approach to calculating the tax. [Read more…]

No Will, Spouse or Children: Where Do Your Assets Go on Death?

NO WILL AND NO OBVIOUS HEIRS? NOW WHAT?

Contrary to popular belief, the government does not automatically take the assets of a person who dies without a will leaving no spouse or children to inherit. The Succession Law Reform Act provides for parents, siblings, nieces and nephews to inherit if no spouse or children survived the deceased. Even if a person dies leaving no parents, siblings, nieces, or nephews, the government would not be next in line for a deceased’s assets. [Read more…]

CPP Survivor’s Pension

G+G CPP Survivor

ESTATE ADMINISTRATION – CPP SURVIVOR’S PENSION

If your spouse contributed to CPP, you may be eligible to receive a CPP survivor’s pension. To qualify you must be the legal or common law spouse of the deceased.

The amount of the pension can be a bit confusing to determine. The following link to the Service Canada Website will help you figure it out.

https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit/amount.html 

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