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: Continue reading
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. Continue reading
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. Continue reading
ARE THEY AN APPROPRIATE ESTATE PLANNING TOOL FOR YOUR REAL ESTATE INVESTMENT?
When purchasing a home, most buyers require a mortgage to finance the purchase. In the midst of all the paperwork and information a bank requires to approve a mortgage, they will often offer life insurance through the bank—insurance that promises to pay off the balance of the mortgage should something happen to you or any other person on the mortgage with you. The cost seems pretty reasonable, they only ask you a few questions on the application and the idea of insurance is reassuring—so should you go for it? Continue reading
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. Continue reading
DISINHERITING …
When parents draft Wills they occasionally decide that one or more of their children should receive less than their other children. In some cases parents decide to leave nothing to one or more of their children.
There are many reasons for treating children differently when it comes to their inheritance: Continue reading
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? Continue reading
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. Continue reading
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. Continue reading
GETTING OUT OF A REAL ESTATE DEAL
The decision to purchase or sell a home is not one that should be taken lightly. An Agreement of Purchase and Sale, the standard agreement entered into during a real estate transaction, is a legal and binding contract. Its terms can be subject to conditions that need to be met in order for the transaction to close, but it should not be interpreted as something that one can just “get out of” if they change their minds. Continue reading
