MrWills.com » Estate Planning

Who Inherits Your Money?

Ed Olkovich — Mon, 26 Jul 2010 16:27:58 +0000

Okay, you’re not King Tut. You’re not going to take it with you. You’ll need a will.

Do you know what happens to your money when you die?

If you don’t have a will, here are three key things to know:

• your spouse or children do not automatically get all your money
• your minor children will not be protected
• your family will need costly court orders

Somebody must first find your money. That somebody is your executor, called your estate trustee in Ontario. Before they can collect your money, they need legal authority to act for you. They will hire an estate lawyer to get advice and go to court.

Why invest in a professionally prepared will?

You can choose a person you trust to be your estate executor or estate trustee. For simplicity, let’s refer to this person as your executor.

The executor will be in control of all of your money.

Executors can sell your property once their authority is confirmed by an estate court.

Getting Probate

This process is referred to as “getting probate” of a will. In Ontario, this is called getting a certificate of appointment of estate trustee.

The estate court certifies who represents you when you are gone. The court issues a certificate confirming your executor and who shares in your estate. Your executor can then administer your estate.

They collect all your money, pay taxes and bills and distribute the residue to your family.

Want more tips on being an executor? Get my two free mrwills.com guides to Executor Duties – What You Need to Know and Executor Mistakes – 10 Things Executors Must Never Do.

3 Secrets to Protect Your Family will not show you how King Tut did it. You’ll learn action steps, pitfalls to avoid and get practical checklists to protect your money. Register today.

Who Inherits Your Money?

Estate Lawyers Are Not All Equal Part 2 of 2

Ed Olkovich — Fri, 23 Jul 2010 15:22:09 +0000

In part 1, I gave you ways to find the right estate/probate lawyer. Now what do you do with your list?

Make sure you do your homework. Compare the list of possible candidates. The names of two or three lawyers may surface who work in your neighborhood. Now you’re ready to start with the next step.

Invest some time in interviewing a number of candidates to ensure you can work with them.

You can use the telephone or email to narrow down your choices by asking questions. Here’s a list of possible questions you can ask an estate lawyer:

- Will you personally meet with me to discuss my needs?

- Do you spend 30% or more of your time handling estates?

- How long have you handled estates?

- How long does the process take?

- Do you have an information package or website?

Make sure you feel comfortable talking with your lawyer. Communication skills are important. If this is lacking, you cannot get the advice you need.

Remember this: the lawyer who prepared the will may have no probate experience.

Watch my 1 minute Executor Self Defence video.

Executor Kung Fu Book

The Good, the Bad, and the Ugly

Ed Olkovich — Fri, 25 Jun 2010 15:56:18 +0000

Good, Bad, and Ugly Estate Planning

What’s the difference between a good, bad, or ugly estate plan?

Your answer may differ if you are the person creating the disastrous estate plan or a victim of poor planning.

If you are a victim of bad estate planning you have a different perspective. You could be forced to fix estate planning mistakes.

Ugly planning usually leaves you with few options, except going to court to have a judge fix things.

Your estate planning can have profound consequences for other people. Doing something as simple as dividing your estate unequally between your children could be a bad idea.

Will you be responsible?

Your children may become the victims of this plan. They cannot understand why they were not treated equally by their parents. They end up living their lives with the pain of sleepless nights.

Sometimes, you create an estate plan that leaves spouses unprepared to inherit all your problems. These can be financial difficulties, former spouses, and difficult business relationships.

Sometimes you do not comply with your obligations under family law to support your spouse. You force your spouse to hire lawyers to go to court. This legal process only causes further financial hardship for everyone involved in the estate.

Sometimes, the problem is your estate pays more than it should in taxes. That’s bad.

Not taking the time to prevent problems like these will cause you to leave the wrong kind of legacy. After all, are we not here to enrich the world and not leave others with added hardships?

Good Estate Planning reflects the words of Thomas Mann who said, “A man’s dying is more the survivors’ affair than his own.”

Good Estate Planning is designed to prevent problems for the people we leave behind.

Good Estate Planning requires you to invest in professional advice.

There are no other shortcuts.

Do you disagree? Then send me your comments.

If you believe you can do it yourself put your estate plan to the test. Let a professional offer you their comments. Then you will know if your estate plan passes the good, bad, or ugly test.

For more information, you can read Estate to the Heart How to Plan Wills and Estates for Your Loved Ones. Visit EstateTherapy.com today to read a sample chapter.

Hold on, I’m Coming

Ed Olkovich — Thu, 25 Feb 2010 16:11:34 +0000

Hold on, I'm Coming

“Life does not cease to be funny when people die any more than it ceases to be serious when people laugh.” – George Bernard Shaw

The other day I was having a drink with my tennis doubles partners, Sam & Dave. We had finished a hard-fought match. Sam started teasing me about my new estate planning website.

“Ed, I think the problem you have is your topic. It’s just not as interesting as it could be.”

“I know that Sam; It’s hard to make people laugh about death and dying. Thankfully, everyone wants to talk about money. Nobody likes to waste it.”

Dave offered this advice, “Perhaps you need a tagline. How about… MrWills is my name and death is my game“.

This legal business with estates can be dry and bring you to tears. Yet there is also joy and laughter.

But what if the day comes and you are in trouble? Just remember my name, MrWills.com.

Let me know your thoughts and topics of interest in the blog comment box; I will try to cover some of your suggestions in the coming weeks.

Here’s my thanks to Sam & Dave.

Ed Olkovich aka MrWills

P.S. Many thanks to my tennis partner, Ron, who arranges our matches.

This information is not financial, legal, tax advice or a substitute for professional advice. Always consult with a professional before taking any action.

Ed Olkovich B.A. LL.B C.S. TEP is a Toronto lawyer, certified specialist in Estates and Trusts Law. Ed is frequently quoted as one of Canada’s leading estate experts. He is the author of several books including Executor Kung Fu and Estate to the Heart, both available at EstateTherapy.com or by calling 416.769.9800.

Contact Ed Olkovich’s office here or call 416-769-9800 to arrange a consultation today.

New Power of Attorney Guidelines are Designed to Prevent Fraud

Ed Olkovich — Thu, 12 Nov 2009 14:32:12 +0000

New Power of Attorney Guidelines are Designed to Prevent Fraud

When was the last time you looked at your power of attorney documents? Can you find the original signed documents? These legal documents give the person you designate as your attorney the power to handle your property.

But beware of these new rules if you own real estate in Ontario!

It’s important for you to have valid powers of attorney documents for your protection. Otherwise your family may just be out of luck. Don’t force them to face expensive alternatives including going to court.

New as of February 2009

Effective February 2009, the Law Society of Upper Canada has issued new guidelines to Ontario lawyers. These affect the use of powers of attorney (POA) in real estate transactions.

The new rules require lawyers to follow due diligence standards before a POA can be used to sell, transfer or mortgage your property.

POAs are designed to protect you from unnecessary legal expense.

What if, for any reason, you are unable to sign documents on your own behalf and don’t have a valid POA? Your family may be forced to obtain court orders to deal with your property.

Married Spouses are not automatically authorized

Don’t think that because you are married your spouse can sign your name to legal documents.

You must authorize someone by signing a valid written document designating them as your attorney or substitute decision-maker. Once you need the POA, it is most likely too late to get one signed.

The Law has Changed

POAs for property, if they were signed before 1995, often required doctors to certify you as no longer competent to manage your own finances. This would be the trigger that made them operational.

Under the Substitute Decisions Act, 1992 formal assessments of competency are often required. You cannot expect your family doctor to provide this certificate.

Dangers of Doing-it-Yourself (DIY)

For years, getting a POA document was easy.

Ontario law still does not mandate or require you to use a particular form. Internet websites allow you to download POA’s in various languages free of charge.

But what seemed once to have been acceptable and standard practice no longer is risk-free.

Why are all do-it-yourself documents dangerous?

How can you tell if you have completed them properly? DIY documents are worthless if they do not comply with the law.

An Example, Please!

Jonathan brings a homemade power of attorney into a lawyer’s office.

Jonathan says, “My grandfather is now living in a nursing home after his stroke. His house is empty and I need to sell it to pay for his care.”

What Jonathan doesn’t know is that the power of attorney document was signed in 1995 by his grandfather. The lawyer must review the document and give a legal opinion that the POA allows Jonathan to do what he wants.

Jonathan needs a legal opinion from his lawyer that the POA meets the current guidelines for real estate transactions.

If the POA does not comply, Jonathan must wait until he is appointed as his grandfather’s guardian of property. This can take months and cost upwards of $10,000 or more.

New Standards

The POA now has to be registered on the title to the grandfather’s property to be used.

Lawyers now discourage the use powers of attorney for real estate transactions.

Jonathan’s lawyer must confirm that:

• Jonathan is not exceeding his authority under the POA
• there are no restrictions that prevent him from selling grandfather’s home
• the POA was legally authorized and properly witnessed
• the document has not been revoked
• Jonathan is the person he claims to be with proper identification
• where suspicious circumstances exist lawyers are required to investigate further
• what evidence the witness to the POA may have

In Conclusion:

1. Ontario lawyers are now more vigilant because of the frequent use of phony POA’s in real estate fraud.

2. Lawyers now discourage using POA’s for real estate deals because they can be forged.

3. If you have real estate, ensure your powers of attorney have been professionally reviewed.

Check and update your POAs today. Make sure you meet the new guidelines.

For more information, read the free MrWills.com Guide to… Powers of Attorney: 10 Essentials You Need to Know.

This information is not financial, legal, tax advice or a substitute for professional advice. Always consult with a professional before taking any action.

Ed Olkovich B.A. LL.B C.S. TEP is a Toronto lawyer, certified specialist in Estates and Trusts Law. Ed is frequently quoted as one of Canada’s leading estate experts. He is the author of several books including Executor Kung Fu and Estate to the Heart, both available at EstateTherapy.com or by calling 416.769.9800.

Contact Ed Olkovich’s office here or call 416-769-9800 to arrange a consultation today.

Estate Potholes on the Web

Ed Olkovich — Thu, 12 Nov 2009 14:11:06 +0000

Caution! Estate Potholes on the Web

If you cruise the Web looking for legal information about wills or estates, beware!

Information you find about estate planning or about an estate executor’s duties may not apply to you.

There are different estate laws in each jurisdiction. When it comes to wills and estates, a lot depends on what side of the Canadian-American border you live on.

Federal income tax laws are different on each side of the border. Canada has no federal estate inheritance tax on the overall size of the person’s estate. In the United States, reducing gift and estate taxes can require sophisticated estate planning.

Each province or state may have specific estate laws that apply to their citizens and property located within their borders. For example, provincial probate taxes are calculated differently and at various rates in each province.

Search Tips to Remember About Estates

1. Start your Internet searches by limiting them to your particular jurisdiction.

2. Never assume that what you read on the Internet is legal advice that applies to you.

3. Replies to your e-mail inquiry are also not substitutes for legal advice on your particular situation.

When it comes to advertising, law firms are not allowed to make claims about their competence or guarantee results. They must always act with integrity. Bragging or boastful claims to be the best should be signs of danger ahead.

Lawyers have a license to practice law in a particular jurisdiction. Make sure you have not accidentally crossed the border while you are searching.

If you are a member of the public, it is important to know information you’re reading and how it may apply to you.

Check to make sure the geographic location of the lawyer’s offices is in the correct province if you’re looking for information.

Legal Advice Versus Legal Information on Wills and Estates

There’s an important distinction between researching general legal information and getting legal advice.

Before giving legal advice, lawyers must always be careful to:

• avoid any conflict of interest with an existing client
• receive and keep information confidential
• not answer questions without identifying all necessary background information to avoid errors

What is a Conflict of Interest?

Having a conflict means of a lawyer cannot advise or represent both sides in a dispute.

A lawyer cannot accidentally give advice to someone who is in conflict with an existing client. That is why you find most law firms’ websites contain privacy terms disclaimers, warnings and terms of use.

Reputable law firms will confirm what appears on the website or blog is not legal advice.

Communicating any information that is sensitive confidential electronically can be dangerous.

Therefore, if you are reading information from this website or blog, you must understand the terms of use. You can only obtain legal advice for your specific particular situation after:

a) a face-to-face meeting
b) an identity and conflict check and
c) you sign a retainer agreement.

Don’t think all estate lawyers are the same.

Get advice from an experienced estate lawyer who understands your situation. With help, you can steer around dangerous estate potholes.

This information is not financial, legal, tax advice or a substitute for professional advice. Always consult with a professional before taking any action.

Ed Olkovich B.A. LL.B C.S. TEP is a Toronto lawyer, certified specialist in Estates and Trusts Law. Ed is frequently quoted as one of Canada’s leading estate experts. He is the author of several books including Executor Kung Fu and Estate to the Heart, both available at EstateTherapy.com or by calling 416.769.9800.

Contact Ed Olkovich’s office here or call 416-769-9800 to arrange a consultation today.