“It comes down to if you’re not going to carefully consider who you owe financial consideration to upon death, then the court is going to do it for you.” says Ian Hull in commenting on the impact of the court’s recent decision in Stevens vs. Fischer
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ERAssure®, Canada’s only provider of executor liability insurance provides FREE Inheritance Planning Guides and Executor Guides to help in the process of both estate planning and estate administration.
In this Advisor’s Edge article by John Lorinc prominent Canadian financial planners and estate lawyers discuss the importance of appointing an appropriate executor and the risks associated with the role.
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ERAssure®, Canada’s only provider of executor liability insurance provides FREE Inheritance Planning Guides and Executor Guides to help in the process of both estate planning and estate administration.
Even carefully drawn wills can become the subject of disputes and litigation. Having a poorly drafted will, or no will at all, increases those odds exponentially. Despite this, over 50 per cent of Canadians do not have their testamentary wishes written down in the form of a will.
The reasons for this vary depending on individuals but we often come across a similar set of excuses. For instance, young Canadians often feel that they have not amassed significant enough assets to warrant an estate plan. Some people also have will drafting very low on their priority list and the refrain of being too busy and not having enough time and/or resources is all too common. (more…)
Tagged Canadians Will, Canadians Writing a Will, ERAssure, Estate Debate, Estate Planning And Wills, executor insurance, executor liability, How To Write a Will, Ian Hull, Law, lawyers, Leaving a Will, Planning Your Will, Toronto, When To Write a Will, Who Should Write a Will, Wills And Trusts, writing your will, www.erassure.com
An insurance policy for executors can protect both the executor from personal liability, as well as the estate assets, which may be liquidated to fund any sort of estate litigation.
This article was written by Stephen Rukavina. Stephen is an Associate in the Tax and Corporate and Commercial Groups in the Vancouver Office of Miller Thomson. His practice focuses on tax planning and taxpayer representation. He also practices general corporate and commercial law.
In recent years, the high Canadian dollar and the fall in United States housing prices has encouraged Canadians to buy US vacation properties. However, Canadians should be aware of the tax consequences of owning a US vacation home before making a purchase. One of the most important considerations is potential exposure to US estate tax.
By Tracy Sherlock, Vancouver Sun October 19, 2012
It has been estimated that Canadian baby boomers stand to inherit approximately $1 trillion over the next two decades. Despite the sheer magnitude of this expected transfer of wealth, close to half of all Canadians haven’t formally set out their wishes for after they die, and just 56 per cent of Canadians have a will, according to a BMO study.
“It’s really an unfortunate occurrence when someone dies without a will. It’s really unfair for the family members because it’s time, it’s extra cost and it’s an added responsibility for the people you’ve left,” said Sara Plant, vice-president and national director for BMO Harris Private Banking.
The same study found that most people with a will are leaving the lion’s share of their assets to their children, but some will go to other family members, friends and charities. (more…)
Written by: Derek de Gannes, CW Partners
Just about everything tax-related comes with a deadline. Miss the deadline and more often than not there will be a penalty and perhaps some interest. The remainder of the blog will address the filing deadline of a trust which is wound up and its remaining assets distributed to the beneficiary.
Generally speaking, a return of income for a trust or estate must be filed within 90 days from the end of the tax year. The tax year of an individual, which includes a trust, is defined as being a calendar year. (more…)
Passing the Cottage to the Next Generation: Originally printed in Lawyers Weekly, November 30, 2012.
The family cottage is often the source of years of happy memories: children with sand between their toes; campfires; boating and large family gatherings. Because clients and their children can be emotionally tied to a family cottage, options for transferring it to the next generation should be thoughtfully considered.
Communication is Key
This may be an opportune time for a family meeting. A frank discussion may confirm who is interested in acquiring the property, how much control the clients want to maintain over it, who can afford it, whether insurance should be purchased to offset costs, and how to arrange ongoing maintenance. You may advise that your clients’ children and spouses sign a contract excluding the cottage from any family law claims. A timely, open family discussion might be the best way to allow for proper planning and to avoid unpleasant conflict. (more…)
What happens when you, the lawyer, fail to secure title insurance on a real estate transaction when instructed to do so? A recent article in The Lawyer’s Weekly suggests that the lawyer becomes responsible for everything the policy would’ve covered even if the range of insurance protection exceeds the normal standard of practice within the “opinion on title” context.
Next, how about the estate solicitor failing to speak to the availability of executor insurance during the estate administration discussions? When the litigation commences, is it reasonable for the executor or the beneficiaries to look to the estate solicitor for the full scope of protection that would be available from an executor insurance policy (including defense costs, indemnity, and posting of bonds, etc. during litigation) as a result of the lawyer not bringing it to their attention in time to purchase it?
As a lawyer, are you concerned that the matter is important, but uncomfortable with a detailed insurance discussion? Give your client an ERAssure® brochure and refer them to ERAssure® or their insurance broker – and document your file accordingly. It’s a good opportunity to stay in the advice business but out of the insurance claims business.
In estates, there has often been a perceived unfairness that a lay executor must assume various burdens without the benefit of insurance coverage.
