Estates Made Simple

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In this episode of the Estates Made Simple podcast, Gordon VanderLeek and Jenna Carvello delve into the critical role of powers of attorney in estate planning. They emphasize the need for understanding legal terms, adherence to restrictions, and best practices in estate management. Transparency, informal accounting, and the responsibilities of executors are key themes discussed.

Key Takeaways:

• Powers of Attorney Significance: Powers of attorney are essential legal documents appointing representatives for financial and property matters.
• Adherence to Terms: Strict adherence to the document's terms is vital, including restrictions on actions like donations or beneficiary changes.
• Effective Estate Management: Regular informal accounting and transparency help prevent disputes and complications.
• Executor's Role: Executors must maximize the estate's value, review financial records, and consider compensation.
• Seek Personalized Advice: Listeners are encouraged to seek personalized advice when dealing with estate-related matters and engage through social media channels.

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
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Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
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Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.

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Summary:

In this episode, Jenna & Gordon discuss ways to reduce risk as an executor or administrator of an estate. They emphasize the importance of seeking specific advice from qualified professionals and provide three easy and often overlooked ways to minimize risk. 

They cover the following topics: posting a notice to creditors and claimants in the paper, obtaining releases from beneficiaries, and obtaining clearance certificates from the Canada Revenue Agency (CRA).

Key points:

• Releases should be obtained when making distributions and providing financial reports, ensuring agreement and preventing future lawsuits.
• Clearance certificates provide protection against CRA coming back to claim unpaid taxes and prevent personal liability for the executor.
• Qualified professionals provide expertise in areas such as tax obligations, legal matters, and investment management.
• The Canada Revenue Agency (CRA) is a creditor in all estates, and obtaining clearance certificates mitigates the risk of personal liability for the executor.
• There are two clearance certificates available: one for the final tax return (T1) and another for income earned after the individual's death (T3).

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram

Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram

Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.

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Summary:

In this episode, Gordon and Jenna discuss the practical aspects of estate administration, focusing on what happens between the time someone dies and when probate is obtained.

They address the common concern that banks freeze accounts after someone's death and explore the expenses that need to be paid during this period. Gordon and Jenna emphasize that although accounts are generally frozen, banks often allow certain transactions to cover necessary expenses. They also touch upon the importance of planning to ensure smooth estate administration and provide insights on negotiating with banks and creditors.

Key points:

• Banks freeze accounts upon an account holder's death to protect the estate and prevent improper transactions.
• Common non-contentious expenses that banks typically approve include funeral costs, utility bills, and insurance payments.
• Negotiation and cooperation with banks can often lead to the payment of necessary expenses before obtaining probate.
• Preplanning and prepaying funeral expenses can alleviate financial burdens and ensure smoother estate administration.
• Borrowing against estate assets may be a viable option for covering immediate expenses while awaiting probate.
• Executors should be precise and meticulous when completing probate applications to avoid unnecessary delays.

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram

Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram

Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.

Send us Fan Mail

Summary:

In this episode, Jenna and Gordon discuss the important considerations when appointing an executor who resides in a different province. They explain the bond requirements, which act as an insurance policy to protect the beneficiaries of the estate. Jenna and Gordon emphasize the need for careful planning and highlight potential issues that can arise if the bonding requirement is not met. They also provide insights into waiving the bond, obtaining beneficiary consent, and the associated costs.

Key points:

• Bond requirements act as insurance to protect the estate and beneficiaries from improper actions by the executor.
• The surrogate rules mandate out-of-province executors to post a bond when applying to become the legal representative of the estate.
• Waiving the bond can be requested based on factors such as the estate's size and unanimous consent of beneficiaries.
• Proactive planning can help avoid bonding requirements and associated expenses.
• Considerations for executor selection include trustworthiness, location, tax implications, and logistics.

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram

Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram

Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.

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Summary:

In this episode, Gordon & Jenna discuss testamentary intent and the impact of additional notes on estate administration. They explore the legal implications of handwritten notes found in the deceased's home or changes made directly on the will. They highlight the changes in the law regarding testamentary intent and the court's willingness to consider extrinsic evidence to determine the deceased's intentions.

Gordon & Jenna emphasize the importance of clear will drafting to avoid ambiguity. They address the role of the executor when encountering additional notes and provide guidance on seeking legal advice to assess their validity and potential impact on the estate distribution.

Key points:

• Testamentary intent refers to a formal will that clearly outlines the testator's intentions.
• Additional handwritten notes or changes on the will can complicate estate administration.
• The law allows the court to consider extrinsic evidence to determine the deceased's intentions.
• Rectification or court applications may be necessary to address ambiguous or invalid changes.
• The court's direction is essential to protect the executor and ensure proper distribution.

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram

Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram

Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.

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Summary:

In this podcast episode, Gordon & Jenna discuss the challenges of finding missing beneficiaries in estate administration, particularly in situations where the deceased did not leave a will. They explore various strategies for locating beneficiaries, including online searches, social media profiles, and speaking to family members, friends, and old employers. They emphasize the importance of being creative in approach and not relying solely on traditional methods of communication. They suggest placing notices in newspapers and online to expand the search, and highlight the value of engaging the services of a professional investigator as a last resort.

It is important to keep wills up-to-date and to include clauses that address the possibility of missing beneficiaries. The hosts also recommend keeping a spreadsheet with a contact list of all beneficiaries to save costs and time.

Key points:

• A Benjamin order can be used to declare a missing person pre-deceased for the purpose of distributing assets in a will
• Strategies for locating beneficiaries include online searches, social media profiles, and speaking to family members, friends, and old employers
• Engaging the services of a professional investigator may be necessary as a last resort
• Keeping wills up-to-date and including clauses that address the possibility of missing beneficiaries can help resolve issues with missing beneficiaries
• Keeping a spreadsheet with a contact list of all beneficiaries can save costs and time

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram

Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram

Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.

Send us Fan Mail

Summary:

In this podcast episode, Gordon & Jenna discuss the topic of Registered Education Savings Plans (RESPs) and their application in estate administration. They start with an introduction to RESPs and explain the government's rules regarding their contribution limits, maximum lifetime contribution limit, and how grants are taxed. They also explain the different types of plans - single, family, and group plans.

The interesting aspect of RESPs is that if there is no successor subscriber named for the plan, it falls into the residue of the estate, and the grant money can be returned to the government. This can raise questions about how to divide the residue of the estate. Executors need to ensure that the funds stay for the benefit of the child or grandchild.

Key Points:

• RESP is a plan that helps parents or guardians set up funds for the benefit of their children's education
• There are contribution limits for the plan, and grants are taxed in the hands of the beneficiary
• There are different types of plans available, such as single, family, and group plans
• If there is no successor subscriber named for the plan, it falls into the residue of the estate, and the grant money can be returned to the government
• Executors need to ensure that the funds stay for the benefit of the child or grandchild

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram

Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram

Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.

Send us Fan Mail

Summary:

In this podcast episode, Jenna & Gordon discuss taxes after an individual passes away. They emphasize the importance of seeking specialized advice from an accountant to help with dealing with taxes and estate distributions. Jenna & Gordon suggest being careful while distributing the estate to ensure that there is enough money to pay any taxes owed. They also mention that getting the clearance certificate from the CRA can take time, and it is important to know the deadlines and obligations related to tax filings.

They also distinguish the taxation system in Canada from that in the US, where there is an estate tax. In Canada, there is no specific estate tax, but there is a deemed disposition of all assets as of the date of death, which can lead to a significant tax liability in the terminal return. The hosts highlight that there may be a rollover for a surviving spouse or partner, which can be a consideration when determining tax implications.

Key points:

• Seek specialized advice from an accountant for tax-related matters after an individual passes away
• Obtaining a clearance certificate is an essential part of the process
• Executors must file a terminal return and an estate return and determine the deadlines as soon as possible after the individual’s passing
• The taxation system in Canada does not have an estate tax, but there is a deemed disposition of all assets as of the date of death
• A rollover for a surviving spouse or partner may be a consideration for tax implications

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram

Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram

Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.

Send us Fan Mail

Summary:

In this podcast episode,  Jenna & Gordon discuss the topic of what assets make up an estate. They discuss assets that pass outside of the estate, such as assets with beneficiary designations or joint holder status. They highlight that it's important to understand what assets are inside and outside of the estate for estate administration purposes.

Jenna & Gordon discuss the importance of understanding beneficiary designations in estate planning. They highlight some common issues that can arise when beneficiary designations are not properly planned. They provide examples and tips for executors and individuals with long-term disabilities or blended families to ensure that beneficiary designations align with their wishes and avoid unintended consequences.

Key Points:

• Assets that make up an estate can include financial assets, real property, digital assets, artwork, genetic material, and more.
• Assets inside the estate can include non-registered accounts in the person's name solely, real property owned solely or as tenants in common, and other assets not passing outside of the estate.
• Understanding what assets are inside and outside of the estate is important for estate administration purposes.
• It's essential to align beneficiary designations with intended wishes and be mindful of potential tax implications and other consequences.
• Litigation, creditor protection objectives, and tax implications should be considered in beneficiary designations.

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram

Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram

Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.

Send us Fan Mail

Summary:

In this episode, Gordon & Jenna discuss estate administration from the perspective of a beneficiary, which is a different angle compared to their usual focus on the role of the executor and fiduciary responsibility. They provide tips and insights for beneficiaries, starting with the importance of patience in the estate administration process. 

They emphasize the importance of effective communication between beneficiaries and executors, and the role of legal advice in resolving issues related to estate administration. They also highlight the need for beneficiaries to be proactive in protecting their rights, particularly in cases where there may be financial dependency or concerns about the validity of the will. 

Key Points:

• Estate administration in Canada typically takes 12-24 months
• Six-month limitation period for potential claims against the estate
• Time-consuming process of obtaining the grant of probate
• Importance of good communication from the executor to set appropriate expectations for beneficiaries
• Consider filing a claim against the estate if financially dependent on deceased
• Need permission from the court if missed deadline

Hosts:

Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram

Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram

Please note, Estates Made Simple is for informational purposes only and is not to be considered legal, tax, or financial advice. We recommend you seek individualized advice for your unique situation with qualified professionals.