One question I get asked time and time again is ‘What is probate?’. Most people are familiar with probate fees but many aren’t really sure what probate is and when it is needed.
The arrival of spring also marks the busiest time of year for the real estate market. Selling your home can be confusing, especially if this is your first time or you’re the executor of an estate and need to sell the deceased’s home.
One question that sellers want to know is how quickly they will get the money after the sale is completed.
In most cases, the net sale proceeds (after payment of the real estate commission, legal fees, taxes, any mortgage, and so on) will be deposited in your bank account on the next business day. In a few cases, the funds may be available for deposit late on the day of closing but this is not usually possible.
Sometimes, there is a problem on the day of closing and funds are not available right away. For example,
Siblings often don’t get along, even at the best of times. Add the stress and emotion that accompany having to take care of an aging parent and relations can get even more strained.
I recently met with Ottawa residents and siblings Derrick and Sherry (not their real names). Their mother had recently had a massive heart attack and suffered some brain injury as a result. As their mother had granted them a Power of Attorney for Personal Care, Derrick and Sherry had to decide where she should live as she was currently incapable of making this decision for herself. She had also appointed them as her Attorneys for Property.
Derrick and Sherry often disagreed on many things including where their mother should live.
An exciting change to RDSPs is set to take effect sometime this year. Earnings in an RESP will be eligible to
be rolled-over to an RDSP on a tax-free basis if the plans share a common beneficiary. There will be certain conditions that have to be met before the roll-over can occur.
Estate Planning is a process that involves work by both the lawyer and the client. I recently met with Carl and Sue at my law office in Stittsville (Ottawa). During our meeting, they said how surprised they were at the amount of paperwork they were asked to bring to the first meeting.
I explained to Carl and Sue that there are very important reasons for thoroughly reviewing what they own and how they own it. I commented that clients often feel the way Carl and Sue do but after hearing just one example, they’re usually convinced that it is important to do. Here is one example.
If clients own real property, it can be owned as ‘joint tenants with rights of survivorship’ (JTWROS) or as ‘tenants in common’ (TIC). If owned as JTWROS, when one owner dies, title to the property passes to the surviving joint owner without going through the estate of the deceased owner. In other words, probate fees are not payable on that real property.
Early in the new year, I met with Grace* to review her estate planning. She signed a new Will and Power of Attorney for Property (POA) naming her daughter, Julie,* as her executor and her attorney in the new documents.
Grace called me last week to let me know she had gone to her bank to give them the new POA document. She is getting older and, although her mind is still sharp, she likes the idea of Julie being able to manage her money for her. However the bank would not accept the POA because Grace had only an unsigned copy and hadn’t brought the original with her. The bank’s staff, trying to be “helpful,” offered to have Grace sign the bank’s POA form. However, they did not explain to her the problems that doing so could create.
“Estate Planning through the stages: Some common threads”
By Donna Neff and Natalie Sanna
Publication: Parent-Child Guide Book, Lanark, Leeds and Grenville
Volume 15 Number 3 Spring 2014
Just as no two people are alike, no two Wills should be exactly alike. Everyone’s situation is unique as are everyone’s estate planning goals. A one-size-fits-all or ‘cookie cutter’ approach is not appropriate for estate planning.
Here are some of the common pitfalls that we have seen with type of approach.
The answer depends on what is in the deceased’s will. If an alternate Estate Trustee (ET) is named who is willing and able to take on the job, the first named ET needs to sign a Renunciation…
If you are in (or about to enter into) a second marriage, you will need to give some careful thought and attention to your estate planning. The most challenging question you’ll likely face is: How do I make sure that my children from my first marriage inherit from me while making sure my second spouse is well taken care of? If you do not have children but your spouse does, are you OK with all of your estate going to your spouse’s children or should your family, friends or favourite charities get what you’ve worked hard to accumulate? There is rarely an easy answer.