BANK OF CANADA – DORMANT ACCOUNTS
If a bank account is not used for a prescribed period of time, the dormant account is transferred to the Bank of Canada. If you want to determine whether or not there are dormant accounts in the name of the Deceased, you will need to contact the Bank of Canada so that they can inform you of the legal documentation they require to process your claim. Continue reading
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. Continue reading
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. Continue reading
SEPARATION AND THE IMPACT ON ESTATE PLANNING
It is important to review your estate planning upon separation from your spouse. Separation by itself will not have an effect on your Will or the distribution of your estate. Some of the things to consider and discuss with your lawyer are:
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:
GUARDIANSHIP – WHAT ARE THE LIMITATIONS?
Parents who have children under the age of majority will naturally want to provide for them in their Wills. In addition to arranging their inheritance, most parents will want to name a guardian for their children should both parents die at the same time or if a parent is in a single-parent situation. Continue reading
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. Continue reading
LIABILITY AND BUSINESS INCORPORATION
There are many positive reasons to incorporate your business or professional practice. The main reason lawyers recommend clients consider incorporating is to limit personal liability with respect to the corporation’s actions. Unlike a sole proprietorship or a partnership, a corporation is a separate legal entity. Often shareholder’s liability exposure in a corporation is limited to the amount they have invested in the corporation, thereby protecting their personal assets. Continue reading
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.
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. Continue reading
