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
ARE YOU AN ESTATE TRUSTEE THAT NEEDS PROBATE?
Gilmore and Gilmore offers a straight forward, and cost effective Probate Application service for Estate Trustees / Executors who are otherwise willing and able to administer the Estate they are charged with overseeing. Continue reading
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.
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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. Continue reading
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. Continue reading
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. Continue reading
