February 21, 2020

Formal Execution of a Will

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FORMAL EXECUTION OF A WILL

There are specific requirements in Ontario, set out in legislation called the Succession Law Reform Act (SLRA), that govern how a Will is to be executed in order to make it valid. These requirements are quite rigid and a document that does not comply with them may very well be found to be invalid. [Read more…]

Ontario Disability Support Program and Inheritance

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ODSP AND INHERITANCE

How will an inheritance impact your income support from ODSP?

Any money, property or possessions that you receive can affect your eligibility for, or the amount of money you receive from, Ontario Disability Support Program. This includes anything you may inherit from someone who has passed on. Some inheritances will be exempt and will not have an effect on your ODSP eligibility or amount. [Read more…]

Bequeathing a Farm in Your Will

G+G Farmland

BEQUEATHING A FARM IN YOUR WILL

The transfer of farmland, by sale, gift or other form of transfer, is generally subject to HST unless it falls into one of the exemptions found in Schedule V of the Excise Tax Act. One such exception is found in section 167(2), which determines that:

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Forcing an Executor to Account

FORCING ACCOUNTS

Executors of an estate are required to disclose the value of an estate and to document as well as explain the accounting of the estate to all beneficiaries.

Beneficiaries of an estate often complain that they are not provided with information concerning the value of an estate or the accounting. In some cases they are asked to “sign off” on the estate without knowing in advance what their share of the estate is and how it was determined. [Read more…]

Estate Planning for Farm Property

G+G Farmhouse

CAPITAL GAINS ARE HANDLED DIFFERENTLY WITH FARMLAND

When an individual dies any farmland they own is treated differently than land containing that individual’s principle residence. On the death of a taxpayer, farmland can be transferred (sold) on a rollover basis at the adjusted cost base (ACB), or at any price up to fair market value (FMV). A rollover means the transaction of transferring (selling) the farm takes place without any tax being payable immediately. This is beneficial because normally capital gains tax is payable when a business changes hands, and farming operations usually do not have a lot of cash on hand compared to assets like equipment, vehicles, and crops. [Read more…]

ODSP Eligibility and Income

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ODSP ELIGIBILITY AND INCOME

The Ontario Disability Support Program provides eligible people with disabilities with income support to pay for living expenses such as food and housing. Eligibility for this program, as well as the amount of income support you can receive, is directly affected by a person’s income. [Read more…]

A Family Meeting and Estate Planning

FAMILY MEETINGS AND SECURING YOUR LEGACY

A Family Meeting can be an effective component of Estate Planning. If you have a complex Estate or you will be creating an imbalance in the division of your assets amongst your children, a Family Meeting can be useful in helping the family to understand the ins and outs of your Estate and the decisions you are making.

[Read more…]

Alternate Executors and Beneficiaries

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ALTERNATE TRUSTEES AND BENEFICIARIES

Many people who seek to have their Wills drafted are adults whose children have already reached the age of majority and moved away from home. In cases such as these, many people would question the need to have an alternate estate trustee or beneficiary if they name their independent adult child to those roles. However, it is important to consider the possibility that if only one estate trustee or beneficiary is selected, and that person dies before the person who made the Will, then there is no one to act as the trustee or inherit the estate. [Read more…]

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…]

Accessing the Canada Pension Plan

CANADA PENSION CHILDREN’S BENEFIT

A child who has lost at least one parent who was a CPP contributor may qualify for the CPP Children’s Benefit.

A child is defined as being under the age of 18 or being between the ages or 18 and 25 and in full-time attendance at school or university. The monthly children’s benefit is a flat rate that is adjusted annually. A child may get up to 2 benefits if both parents paid into the CPP for the minimum number of years (3) and each parent is either disabled or deceased. [Read more…]