The number 21 figures prominently in estate planning and administration – at least three separate rules feature the number. Having been involved in estate and trust education for a number of years, I can attest to the fact that the three rules can be confusing on their own and may spell real trouble when applied in combination. The three rules govern: when capital/gains losses generated by trust property must be….
21 x 3 = confusion Continue Reading »
Estate PlanningReciprocal wills contain terms that mirror one another and are frequently prepared for couples. Mutual Wills are reciprocal Wills that the testators have agreed cannot be changed, at least without the consent of the other. Where there is no written agreement, the question arises: when do reciprocal Wills become mutual ones? The answer of the recent decision of the Ontario Superior Court of Justice in Rammage v. Estate of Roussel….
Mutual Wills – May Require Less than You’d Think Continue Reading »
Estate Planning, WillsMy blogging colleagues have described many estate and trust issues resulting from subsequent marriages. However today’s blog acknowledges that older individuals can enjoy another meaningful, satisfying and loving relationship after the death of a significant other…..
When WW finally received a copy of her father’s will, after more than a year of chasing her father’s second wife to produce it, she read these words: I have equally considered my two children and leave them absolutely nothing. [WW] is entirely without morality and who ‘did not know’ if she could tell the truth in a Court. She is less a person than her mother. G-d help anyone….
Deceased’s Will So Hateful it is Suspicious Continue Reading »
Contested wills, Estate Litigation, Family Conflict, Testamentary Capacity, Undue influence, WillsFrom time to time, we are asked about the tax consequences of transferring life insurance policies particularly in the context of some common (or not-so common) estate and trust planning scenarios involving transfers. As most people know, when a transfer of ownership of a life insurance policy occurs, the transferor reports a taxable gain, which is essentially the proceeds of disposal less the transferor’s’ adjusted cost basis (ACB) in the….
ESTATE PLANNING REFRESHER: TRANSFER OF LIFE INSURANCE Continue Reading »
Business Succession Planning, Canada Revenue Agency, Estate Administration, Estate Planning, Guardianship, Insurance, Spouse, Tax Issues, TrustsCharities face a bizarre challenge when administering gifts by will. It should be simple. After the donor’s death, a charity named as a recipient of an estate donation becomes the beneficiary of a trust. The money is owed to the charity and the interest in the trust is legally enforceable. Charities, however, are often considered to be second-class beneficiaries. What does it mean to be a “second-class beneficiary”? The idea….
Are Charities Second-Class Beneficiaries? Continue Reading »
Charitable Giving, Estate Administration, Philanthropy/Charitable Giving