RRSP Designations Within an Estate Plan
There are two common ways to designate a beneficiary of your registered plan: On the application form for the plan. This method allows for quick transfer of the plan benefits to the beneficiary upon your death. It also means that your estate will not have to pay probate fees on the value of the RRSP. In your will. However, caution is warranted here. (a) If your will is ever revoked (by a subsequent will, or a marriage, for example), then the beneficiary designation would also be revoked and any original beneficiary designation made on the plan application is not automatically reinstated. In...
Read MoreUnderstand Your Home Insurance Policy
Recently, dozens of home and business owners in Goderich suffered tremendous losses as a result of one of the most severe tornadoes to hit Ontario in 15 years. If you know you would not have the right insurance coverage to rebuild and cover your financial loss after a tornado, fire, flood or other natural disaster were to destroy or damage your home, or you’re not sure, maybe now’s the time to review your home insurance policy. There are typically four types of coverage contained in the homeowner’s policy: 1. Home and Personal Property: (a) Dwelling damage coverage helps pay...
Read MoreWill Kits: Cookie Cutter Disasters
Having a will is undoubtedly an essential part of proper estate planning, yet many individuals do not make this a priority. With so many on-line gimmicks proposing quick and easy do-it-yourself will kits, it is not surprising the vast majority of people who use them do not realize the difficulties their loved ones will face as a result. My recent search of the term “will kit” in an on-line database produced search results of 1,848 court cases in Canada! Will kits are essentially cookie cutter solutions founded on a “one size fits all” philosophy which assumes that...
Read MoreChoosing the Right Estate Trustee
The Estate Trustee (also known as the executor) is the person appointed in an individual’s will to carry out the instructions in the will. As this role requires much time and effort, the person so appointed should be chosen with great care. The duties of an estate trustee include: arranging for the funeral and burial of the deceased; preparing a detailed inventory of estate assets; retaining a lawyer to advise and assist in the administration of the estate; preparing and filing the deceased’s tax returns and paying any tax due; maintaining proper accounts; distributing assets to...
Read MoreEffective Succession Planning for Cottages and Investment Properties
Despite the obvious benefits of owning a cottage or investment property, there are numerous issues that can arise when they are transferred. For example: Which children, if any, are interested in future ownership? Which one(s) do you want to transfer it to? What are the tax and probate fee implications to transferring the property now or on death? Does each child have the resources to maintain the property? Do you need to sell the property to maintain your lifestyle until death or can you keep it for transfer after you die? Can children/spouses/grandchildren jointly own the property? Will...
Read MorePreparing for Joint Home Ownership
An increasing number of people are entering the housing market by buying jointly with a friend or relative. Families are also buying cottages or rental properties together. For many, it enables them to enter the market while prices are high and decreases the individual risk and day-to-day responsibility of such an investment. However, as has been often said, it’s dangerous to mix business with pleasure. Many co-owners don’t consider and plan for the possible curves that life can throw, such as a co-owner: dying; getting married; transferring out-of-province; losing their job such...
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Andrea P. Kelly is a legal practitioner and notary public, called to the Ontario Bar in 2001, with practice focus in Estate Planning and Administration, including wills, estates, trusts and powers of attorney. She also practices Real Estate.
Prior to opening her law firm, she worked in various capacities including litigation support lawyer for the Ministry of Attorney General regarding complex commercial litigation, private practice in corporate/commercial law and numerous legal research and writing positions.