It May Be Boring - But It's Important!
There has been a new probate rule quietly rolled out in 2015 and it will likely affect everyone with a will and certainly those without one. Every will has an executor. The executor’s job is to ensure the estate is valued correctly and to disburse the estate according to the wishes of the deceased. Without a will, the province steps in to administer and this will be more expensive and take longer to settle estate.
Prior to 2015, the executor could estimate the estate value and this was generally accepted without supporting documentation. Guess what? Revenue Canada figured out that they were missing a valuable revenue stream from those recently deceased. Now executors must file a Certificate of Appointment of Estate Trustee (a probate certificate) and they will be required to file an “Estate Information Return” within 90 days of approval of the probate certificate with all the supporting details of the estate’s value.
What does this include?
- Real Estate
- Bank Accounts
- Non-registered assets
- Certain registered assets
- Other goods and intangible property
- Business interests
Where it gets tricky is valuing personal belongings and collectibles because the executor may be liable if false information is filed.
We ask you to answer the following questions:
- Have you chosen a reliable executor?
- Does the executor know what is expected of them?
- Does the executor know where assets are located and your wishes for their disposal?
- Do you have a current will and if not, why not?
Within our scope as financial advisors and/or planners, we can assist, offer guidance, and provide some tools to help you. We can also co-ordinate family meetings to facilitate ensuring everyone is on the same page. Simply give us a call at 705-733-9385.