Wills and Trusts
Many people mistakenly think they don’t need a Will. They assume that if one spouse dies, the other spouse will automatically inherit everything. Unfortunately, this is often not the case. According to the provincial succession laws, in the absence of a Will, a surviving spouse may automatically inherit only the first $200,000 dollars of the estate. Any surplus would have to be shared with the children or other family members. Common law spouses are even worse off in a situation where there is no Will. For example, in Ontario, even if you and your common-law spouse have been living in a common-law marriage for 40 years, the surviving spouse would not automatically inherit anything, since they may not be considered “spouses” under the provincial succession laws when it comes to inheriting an estate!
Take the time to put a carefully written will in place, for the ones you love the most.
Powers of Attorney (Property)
A Continuing Power of Attorney for Management of Property is a document in which you give somebody (preferably a spouse or someone you trust implicitly) the authority to make all decisions on your behalf concerning your property and all other financial affairs and is applicable in case you are mentally incompetent or incapable. The importance of drawing up such a Powers of Attorney is that it allows you to designate, in advance, who you wish to look after your estate. Without this document, for example, if you became or were assessed as mentally incompetent, your spouse or any other family member would have to apply to the courts to be appointed as an attorney – a procedure which could be both expensive and time consuming – in order to have access to your estate. We would be happy to discuss this with you in more detail.
Powers of Attorney (Personal Care)
A “Power of Attorney for Personal Care” lets you outline what you want to happen if you become ill and cannot communicate your wishes about your health and welfare including any medical treatment. The importance of having this document in place is that it allows you to have some control over your personal choices. Should you become mentally incapacitated and not have this form of Power of Attorney in place, your family members would have to apply to the courts to be appointed as the attorneys—this could be financially onerous and time consuming. Not having a Personal Care Power of Attorney also opens up the possibility of a court battle within the family as to who should be appointed—and wouldn’t you rather know who is making decisions for you?
Probate Order
When a loved one passes, their executor or trustee must handle the transfer of the deceased assets to the intended beneficiaries. This process is accomplished through a court process called Probate or, more technically, Application for an Appointment of an Estate Trustee with a Will or without a Will.
When death occurs, the first goal of our Offices will be to protect the assets for the surviving spouse and for beneficiaries. Regardless of whether we are dealing with a probate or trust administration, the distribution process generally involves certain phases.
These phases include:
- inventorying documents and finances,
- valuating the assets,
- redeeming insurance, annuity, and retirement policies,
- paying expenses and claims,
- tracking income,
- paying taxes,
- and ultimately, distributing assets to the beneficiaries or heirs.
If a loved one has recently passed away, and you have questions about what to do next, please contact our offices.
Call or email for more information
Henson Trust/Family Trust
If a family member with special needs is receiving Ontario disability support benefits (ODSP), any inheritance given to them under a Will is considered an asset and will disqualify them from ODSP benefits unless special provisions are made in the parents’ Will. The most common planning tool to pass on your estate to such an individual, usually your children, is the Henson Trust. The funds held in this trust are not considered to be your child’s asset because the Estate Trustee has absolute discretion in the management of this trust.
It is extremely important for parents of a disabled child or adult to ensure the child’s Ontario Disability Support Program’s (OSDP) benefits are not affected by their estate planning. For more information on Henson Trusts, please contact us. We will provide you with the guidance you need to secure your loved one’s future with a properly drafted trust.
Estate Administration
When a loved one passes, their executor or trustee must handle the transfer of the deceased assets to the intended beneficiaries. This process is accomplished through a court process called Probate or, more technically, Application for an Appointment of an Estate Trustee with a Will or without a Will.
When death occurs, the first goal of our Offices will be to protect the assets for the surviving spouse and for beneficiaries. Regardless of whether we are dealing with a probate or trust administration, the distribution process generally involves certain phases.
These phases include:
- inventorying documents and finances,
- valuating the assets,
- redeeming insurance, annuity, and retirement policies,
- paying expenses and claims,
- tracking income,
- paying taxes,
- and ultimately, distributing assets to the beneficiaries or heirs.
If a loved one has recently passed away, and you have questions about what to do next, please contact our offices.
Call or email for more information