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Archive for January, 2010

An Estate with no Executor?

Sunday, January 24th, 2010

During the estate planning process, many important decisions must be made.  Although most people focus on who will get their estate, another important decision is who to appoint as executor (also referred to in Ontario as an ‘estate trustee’).  Both a primary (your first choice) and one or more alternate executors should be named in case the first choice is unable to do the job.    A recent and interesting article by Susan Hughes, entitled “No executor required” published in the November/December 2009 issue of the Canadian Lawyer, shows just how important this choice can be.  

Hughes reviews a recent Ontario case, Evans v. Gondor, in which a most interesting situation arose.  At their request, the court removed the executors who had been named in the deceased’s Will.  The executors, the deceased’s sister and brother-in-law, no longer wished to act and there was no replacement named. This left the estate without an executor. (more…)

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Avoiding Probate Fees on Insurance Proceeds

Thursday, January 14th, 2010

If the deceased named a beneficiary on a life insurance policy on the deceased’s life, the surviving beneficiary receives the proceeds directly.  The insurance proceeds are not included in the value of the estate for purposes of calculating probate fees.  However, if the beneficiary has predeceased and no contingent beneficiary has been named, the insurance proceeds are payable to the estate and are included in the value of the estate for probate purposes. (more…)

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When a Child Inherits (Part 2 of 2)

Thursday, January 7th, 2010

If there is no trust in the Will, an executor may wish to pay the child’s inheritance into Court.  By doing so, the executor is discharged from further responsibility to the extent of the amount paid into Court.  The executor does not need to monitor the Court’s handling of the money, how it is invested, or keep any further records.

When a minor child is left an inheritance, the Office of the Children’s Lawyer (OCL) may become involved.  An office within the Ministry of the Attorney General for Ontario, the OCL’s mandate is to represent personal and property rights of minors and unborn children, including estate and trust matters. 

Parents may also be surprised to learn that when a child reaches the age of 18, he or she can demand that the inheritance be handed over to him or her if the inheritance is not being held in a trust.  The child can also demand a full accounting of all transactions affecting the inheritance unless previously approved by the Court.

A parent (or other person leaving a gift to a child) who wishes to defer payment of the child’s inheritance beyond the age of 18 can include a trust in his or her Will.  In a trust, the parent can specify that partial payments of the inheritance are to be made at various ages with income (what the trust assets earn) being paid out regularly.

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