What is Land Transfer Tax?
Congratulations, you made an offer to purchase a new home! Avoid the heart palpitations that will come when your lawyer advises you of the closing funds that they will need by way of certified funds by familiarizing yourself with land transfer tax now. Ontario land transfer tax is a provincial tax that the purchaser pays upon completing the purchase of the property. If you buy property within the City of Toronto, you would also have to pay the municipal land transfer tax. Land transfer tax is calculated based upon the value of the property, using the scale below: 0.5% on the first $55,000.00...
Read MoreHenson Trusts – Planning for the Disabled Beneficiary
Families with disabled beneficiaries who are dependent on their caregivers have special issues to consider when planning for the financial resources that will be available to these beneficiaries, including through their estates. The Ontario Disability Support Plan offers assistance to adults with disabilities, but there are limits. If the disabled adult inherits assets directly or they exceed the asset limit set out in the legislation, they may not qualify for the assistance until they have depleted their inheritance. There is, however, an exception. A “Henson Trust” is an...
Read MorePost-Inspection Concerns: When Things Go Wrong
There may come a time that you discover something wrong with your house, and you may find yourself disappointed with your home inspection. Intermittent or concealed problems You can only discover some problems by living in a house. They cannot be discovered during the few hours of a home inspection. For example, some shower stalls leak when people take a 20-minute shower, but do not leak when you simply turn on the tap. Some roofs and basements only leak when specific conditions exist. Some problems will only be discovered when carpets, furniture or finishes are removed. No clues Some...
Read MoreMissing Estate Gifts
From time to time, testators (will makers) gift specific assets in their wills which later cannot be found at the date of death because they have been destroyed or disposed of. In such a situation, the gift will fail in that the intended beneficiary will receive nothing and the gift is said to have “adeemed”. The testator may include a substitute gift in the will to address the possibility that the particular asset may not be found at death. There are also limited situations set out by statute allowing substitution of property that was gifted and is not in the testator’s...
Read MoreGot Plans for Your Land? Then Check the Zoning By-Laws…
Ever wonder if the guy down the street from you is really allowed to keep a pet elephant? What about the lady who just opened a butcher shop in her garage or the religious group which has its place of worship in the community park? The use of land in a community can be a tricky business, to say the least, and must be carefully checked against zoning by-laws. Zoning by-laws control the use of land in your community. They state exactly: how land may be used where buildings and other structures can be located the types of buildings that are permitted and how they may be used the lot sizes and...
Read MoreChild Inheritances: A Matter of Trust
There are a number of ways that a child under 18 (referred to as a “minor”) may inherit assets. The child could: be named as a beneficiary in a Will inherit from a relative who dies without a will (referred to as “dying intestate”) if the child is one of the legal beneficiaries under the intestacy laws of Ontario; or be named as a beneficiary of a life insurance policy or any other asset where a beneficiary can be named, such as a segregated fund, an RRSP/RRIF, pension plan or other death benefit. In Ontario, a minor child is not permitted to receive a...
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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.