The Estate Grinch
When a person in Canada dies, it is necessary for their estate to pass through Probate. Probate is the procedure by which a will is approved by the Court as the valid and last will of a deceased testator (the person who made the will). When someone dies without a valid will, they are said to have died “intestate”. In such cases, the Probate Court must appoint someone to act as administrator of the estate (rather than the executor).
This sounds simple and straightforward but there is a catch. There are fees collected by the province on any estate over $5000 in value and in many cases, it will require a lawyer and accountant. It gets better. The process of going through Probate takes time, as all parties do their “thing”. We have all heard the statement that time is money and in this case, it is exactly that. Assets can be tied up for months and the frustration felt by families can take a huge toll. Most people have saved so that they can leave a legacy to their family, not banking on an extra layer of tax and fees.
While there are many solutions to avoiding the pitfalls of “The Estate Grinch”, one of the most common solutions lies in life insurance and segregated funds. Give yourself a present this year, one that is Grinch proof. Get a second opinion on how your estate plan looks. Even the Whos down in Whoville would take that with their roast beast!
“Nothing is certain except death and taxes.” We’ve all heard the quote, (or, misquote?) and it’s cemented a place in our history and popular culture. While most people attribute the origin of the quote to Ben Franklin (or even wrongly so to Mark Twain) it was quoted decades earlier. Here’s the history of the famous, “death and taxes” quote.