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Archive for the ‘Estate Administration’ Category

How Can I Avoid Probate? – Part Three

Wednesday, August 26th, 2009

Previous blogs explained what ‘probate’ is, how the estate administration tax (popularly called “probate fees”) are calculated and how spouses might be able to arrange their affairs to avoid probate on the death of the first to die.

As noted previously, avoiding probate from one generation to the next is much more problematic. Generally, I advise clients that avoiding probate between generations is nearly always a poor idea due to the problems that can be created. As I work exclusively in the area of wills and estates, I see many attempts to avoid probate that end up being more costly than the estate administration tax and, worse yet, cause other unexpected and often serious problems that the deceased did not anticipate.

For example, adding a child’s name to the title of a parent’s home means that the child is now required to sign if the parent decides to sell, re-finance, or otherwise deal with the property. In addition, under Canadian income tax law, each person or couple may have one principal residence which enjoys an exemption from capital gains tax. However, if a child is added to the title of the parent’s home and the child already owns a home of his or her own, the capital gains tax exemption may be compromised. And, if the child is subject to the claims of a creditor or an ex-spouse, the parent’s home could be available to settle the claim.

Continued in Part Four

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How Can I Avoid Probate? — Part Two

Sunday, August 23rd, 2009

 

Understandably, many of our clients wish to avoid probate.  To explore how this might be done, if at all possible, it is essential to review the ownership of all assets, beneficiary designations, family relationships, tax implications as well as relationships among family members and the goals of the client.  Only then can we recommend what steps should or should not be taken to avoid probate.  Avoiding probate is usually possible when one spouse dies leaving a surviving spouse.  For example, probate is not generally required if the spouses own assets jointly or where an asset, such as life insurance, is payable to the surviving spouse by way of a beneficiary designation. (more…)

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How Can I Avoid Probate? — Part One

Thursday, August 13th, 2009

 

In this five-part blog, I will discuss what probate is and how probate fees are calculated, which assets are subject to probate and which are not, when it makes sense to avoid probate and how to accomplish that, and when avoiding probate may not be the best strategy and why. (more…)

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When Will a Court Remove an Attorney for Property?

Monday, May 25th, 2009

Attorneys for property take note! A recent court decision, Re Schaefers,  has provided some guidance as to when the court will remove an acting attorney for property. Generally, the court will not interfere with the choice of an attorney who has been named in a valid Power of Attorney signed by a capable person (the ‘donor’); however, there are times when a court finds that it must intervene. This was one such case. Throughout this blog, where I refer to ‘attorney’ I mean the substitute-decision maker  named in a document called a Power of Attorney.  In this blog, an attorney does not mean a lawyer. (more…)

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