Avoiding Liability for Estate Debt
There are many debts that the deceased can leave behind. It is part of the estate trustee’s responsibility to ensure that these debts are paid from the assets of the estate. These debts can take the form of funeral expenses, mortgages, credit card or bank loans or taxes, for example. When the assets from the […]
How Thick Is Your Blood?
Ontario statute dictates that if a person dies without a will (intestate), their surviving spouse, issue, parent, sibling, or niece or nephew should inherit the net estate in that order of priority. Where none of these relatives survive, the estate is distributed according to the table of consanguinity or bloodlines. This table designates progressively distant […]
Your Right to Use Someone’s Real Estate
The Ontario Court of Appeal recently decided a case about one party’s right to use another party’s real property (“real estate” as it is more commonly called): 1043 Bloor Inc. v. 1714104 Ontario Inc., 2013 ONCA 91 (CanLII). The case surrounded the doctrine of prescriptive easements. An easement is an interest in land that is […]
Discussing Your Estate Plan With Your Family
Talking to your family about what you want to happen at your death may make you feel squeamish for many reasons. In fact, it’s a taboo subject for many people, including for the following reasons: Contemplating one’s own mortality can be difficult and upsetting. Some families simply practice or rather, avoid, talking about financial issues […]
Can You Be Trusted to Keep A Secret?
Secret trusts are an interesting and strange animal indeed! Under common law, it is a form of trust effective on death but which does not actually appear in the will. It may or may not be in writing and usually involves a gift to a person in the will with a statement to that person, […]
What is Land Transfer Tax?
Congratulations, you made an offer to purchase a new home! Avoid the heart palpitations that will come when your lawyer advises you of the closing funds that they will need by way of certified funds by familiarizing yourself with land transfer tax now. Ontario land transfer tax is a provincial tax that the purchaser pays […]
Henson Trusts – Planning for the Disabled Beneficiary
Families with disabled beneficiaries who are dependent on their caregivers have special issues to consider when planning for the financial resources that will be available to these beneficiaries, including through their estates. The Ontario Disability Support Plan offers assistance to adults with disabilities, but there are limits. If the disabled adult inherits assets directly or […]
Valuation of Assets
When applying for a Certificate of Appointment of Estate Trustee (also known as probate and hereafter referred to as a “Certificate”), it is necessary to pay estate administration tax on the value of assets passing through the estate. In order to calculate the amount of tax payable, a valuation of the estate’s assets as of […]
Alter Ego Trusts
Alter Ego Trusts, which were established in 1999, are a tax and estate planning tool which allows an individual to transfer assets outside of their estate while still enjoying their assets during their lifetime and many other benefits. The main requirements are that the person who gifts the assets or property to the trust (“the […]
Assets You Cannot Gift At Will
There are several types of assets that you may acquire during your lifetime but that you cannot gift to anyone in a Will. This may be because there is a contract, law or professional regulation that prevents you from doing so. For example, I recently had a client who owned a condominium unit that was […]