GUIDES Searchable

About Edward Olkovich
___________________________________________________________

Ed is recognized as a leading Canadian estate expert. He has practised law in his own firm since 1978 and is a Certified Specialist in Trusts and Estates Law.

Ed is also the author of seven books, including
Choosing Executors, Breakthrough Estate Planning and Estate to the Heart: How to Plan Wills and Estates for Your Loved Ones.

He is regularly quoted in national publications as an expert in estates and is a frequent guest on television and radio. As a lawyer, Ed advises clients on wills, estates, executors, estate administration, and handles legal challenges to wills.

Ed is a member of the Ontario Law Society of Upper Canada, Ontario Bar Association, American Bar Association, Society of Trust and Estate Practitioners (STEP), Canadian Association of Professional Speakers (CAPS), and National Speakers Association (NSA).

He is the founder of EstateTherapy.com, an online estate planning publisher, and is the Dean of Executor Academy.

Ed can be reached by email at ed@MrWills.com or by telephone at 416-769-9800 or toll free at 1-877-MrWills.

For Your Protection

This information is not financial, legal, tax, medical or psychological advice or a substitute for professional advice. Always consult with a professional before taking any action. The author and publisher assume no responsibility for loss or damages, direct or indirect, of any kind from use of this material.

No part of this publication may be reproduced or transmitted in any way or form or by any means, mechanical or electronic, including photocopying and recording, without the permission in writing or by email from the publisher.

Avoiding Costly Money Mistakes
___________________________________________________________

What are the costliest money mistakes you can make?

Forget about what happened with your money in the real estate and stock market collapses. You can recover when these bounce back. The biggest blunder is not having an estate plan.

Why is this the case?

Shortsightedness can wipe out everything you worked for during your entire life. Once you’re gone, you have no chance to recover the loss.

Without an estate plan, your money can be wasted by paying unnecessary taxes, years of delay and legal costs. How do I know that? This is what I do for a living. As an author and legal specialist in estates and trusts law, I see the damage from this mistake every day. It can change people’s lives, cause stress and heartache for those you leave behind.

Estate plans can help you avoid real financial dangers. Most people incorrectly believe estate plans are what only the rich have to worry about. Give me a moment, and I will try to explain how a change in your thinking can save you and your money from ruin.

What Does Your Estate Plan Do?

An estate plan ensures that your loved ones will be taken care of and your financial wishes carried out. Planning helps you prevent problems. If you want to know what estate planning is about, it’s simple; you do it to make sure your money goes straight to the people you care about without legal hassles and quarrels.

I can help you start an action plan to avoid these 7 biggest estate planning mistakes.

The 7 Biggest Estate Planning Blunders
___________________________________________________________
1. Never Finding Any Time — This is the first and biggest mistake
people make when they never do any estate planning. Why does this happen? Are we really too busy or is it we just don’t know how to get started? For most people, it’s trying to find all the answers by themselves. That’s impossible. You need to find out who can help you find the answers you need.

2. Not Having Any Plan — Many people leave things to chance because they don’t think they are rich. It’s a mistake thinking people you leave behind will automatically manage and figure things out. In every family there are differences of opinion concerning money.

Problems can occur whenever someone else must try to interpret what you want done.

Don’t bother making an estate plan, and the government will provide one by default. Their idea of what happens to your money leaves no room for your personal wishes, flexibility, or tax savings.

Your personal estate plan lets you decide what happens to your money, and everything else that is valuable to you. You need to learn how to give away all your stuff to avoid the government rules doing it for you.

3. Paying way too much Tax — The government has ways to make you pay taxes even after you’re gone. If you have a vacation property, a business, substantial investments or even a registered pension plan, don’t think you can give these away tax-free.

An estate plan can give away your property and reduce, or altogether eliminate, taxes. Think how grateful your beneficiaries will be.

4. Not making Your Will — If you fail to make a will, the government writes one for you. You have no say about who is in charge of your estate, who gets a share of your money, or how and when it is distributed. You also lose the chance to use any tax reducing strategies.

Yet people die all the time without having a will. Why? Often they have no idea what is involved in making a will or why it’s the cornerstone to every estate plan.

Wills are legal documents that must pass certain legal tests. Judges are often called upon to interpret or declare homemade wills invalid. Don’t try to make a will by yourself.

Invest in a professionally prepared will to get peace of mind. Start your research by finding the right advisor.

5. Becoming a Target of Financial Abuse — Who can protect you and your money if you no longer can? Don’t think that your family, spouse or children automatically have access to your bank accounts to pay your bills.

Your estate plan should include power of attorney documents. You sign these written legal documents to designate someone as your agent to make financial and/or health decisions for you. You can choose who will control your money and make health care decisions when you no longer can.

6. Not dealing with Insurance, Business and Charities — Missing an opportunity to deal with these items in an estate plan can be devastating.

There are certain tax-free advantages with insurance or a qualified incorporated business. Your estate plan should always consider these items to capitalize on the benefits.

Donating to charity, religious or public causes as part of your estate plan can reduce your income tax liabilities. Giving to charity can be rewarding in more ways than one.

7. Not updating your plan — No estate plan will work if it is out of date. Learn why updates are necessary when changes occur including:

a change in your personal relationships (marriage or divorce)
new children, grandchildren or stepchildren
changes in your legal and moral obligations
moving to another province, state or country.

Reminder
___________________________________________________________

This report is no substitute for legal advice. If you are interested in a consultation with Edward Olkovich, contact his office through his web site at MrWills.com or by telephone at 416.769.9800 or Toll Free at 1.877.Mr Wills (1.877.679.4557).

Want more information?

Contact Edward Olkovich Law Professional Corporation at MrWills.com for a consultation to review your needs.

Tel: 416.769.9800 / Fax: 416.769.9440 / TF: 1.877.MrWills (1.877.679.4557)
Register for our blog to get valuable up-to-date alerts at MrWills.com.

Visit EstateTherapy.com – Simple solutions to your estate problems

I invite you to find all the answers to your estate planning questions in Breakthrough Estate Planning. It is available exclusively from my website, www.MrWills.com.

Here is a list of the topics covered in this easy-to-read guide:

Breakthough Estate Planning:
Finding All the Answers You’ll Ever Need
Table of Contents
___________________________________________________________

Question 1 How Do I Get Started?

Chapter 1 Here’s Where You Start
Chapter 2 Your Three Wishes
Chapter 3 Who Can Help You?

Question 2 How Do I Give All This Away?

Chapter 4 Will Assets
Chapter 5 Joint Assets
Chapter 6 Designated Assets

Question 3 How Can I Reduce Taxes?

Chapter 7 How Your Estate Shrinks
Chapter 8 Taxes: Much Ado About Lots
Chapter 9 Can You Dodge Probate?

Question 4 What’s the Best Way to Make a Will?

Chapter 10 Wills Made Easy
Chapter 11 Put the Right Executor in Charge
Chapter 12 Beneficiaries Get Everything

Question 5 How Can I Protect Myself from Becoming a Victim?

Chapter 13 What Happens if …
Chapter 14 Who Pulls the Plug?
Chapter 15 Speaking of Trusts

Question 6 Am I Forgetting Anything Important?

Chapter 16 Tax-free Life Insurance
Chapter 17 Incorporate Business Strategies
Chapter 18 The Path to Miracles

Question 7 What If Everything in My Life Keeps Changing?

Chapter 19 Review for Changes
Chapter 20 What If You Marry, Separate or Divorce?
Chapter 21 Wrapping It All Up

Your Glossary of Key Words

About Edward Olkovich

Ed is recognized as a leading Canadian estate expert. He has practised law in his own firm since 1978 and is a Certified Specialist in Trusts and Estates Law.

Ed is also the author of seven books, including Choosing Executors, Breakthrough Estate Planning and Estate to the Heart: How to Plan Wills and Estates for Your Loved Ones.

He is the founder of EstateTherapy.com, an online estate planning publisher, and is the Dean of Executor Academy.

Ed can be reached by email at ed@MrWills.com or by telephone at 416-769-9800 or toll free at 1-877-MrWills.

For Your Protection

Estate Mediation:
10 Most Frequently Asked Questions

1. What is Mediation?

Mediation is a way for people involved in an estate dispute to resolve their issues. You meet with a neutral person, a mediator, to attempt to find a solution to the dispute.

In a trial, you ask a judge to decide for you and it’s the winner-take-all approach. Mediation, on the other hand, starts with the idea that you wish some out-of-court settlement. Mediation allows you to make a deal without going through complex steps to trial.

2. How does Mediation work?

The courts are clogged with disputes. Mediation is an alternative way of making your point to the other side. It gets everyone together early to start talking sooner. You can make sure that the other side understands the risks of proceeding to trial.

Mediation lets everyone feel they all win something. This is not often the case in a trial. Mediators, however, do not make judgments on the merits of either side, but help each reach an agreement.

In some cases, mediators will give opinions on the merits of the settlement proposals. They may even suggest alternative solutions where there are roadblocks to a settlement. Good mediators can help keep the negotiations on track and save them from failing.

3. Who are Mediators?

In most estate cases, lawyers or retired judges with estate experience are preferred mediators. Mediators usually are trained or certified in mediation. They play different roles and have personal styles.

Unlike judges, mediators can help steer you to a satisfactory resolution. A trial judge only decides what the law says.

In mediation, you try to formulate a new agreement on how to proceed in the future.
4. How are Mediators selected?

Typically, both sides agree to select mediators or they are appointed by a court. Hourly rates for mediators vary and mediators come with different degrees of experience and skills.

Your choice of mediator is a decision you will discuss with your lawyer. Whoever you select must disclose any conflict of interest and have you sign a confidentiality agreement to mediate. This confirms that what takes place during the mediation is kept confidential.

5. Who goes to Mediation?

Usually, mediation involves everyone in the dispute and their lawyers. A meeting is held in a neutral setting, such as the mediator’s office. No court officials or representatives of the court are present at the mediation. No recording, transcript of evidence or statements are taken.

Before the mediation everyone in the dispute prepares written summaries called briefs. You use these documents to set out everyone’s position in the legal dispute. Your brief is submitted to the mediator usually five days prior to the mediation.

Your brief is your chance to tell your side of the story and what you hope to accomplish. In some cases, settlement proposals are included so mediators can consider options in advance of the meeting.

6. What goes into a Mediation Brief?

Your mediation brief gives the mediator the background to your dispute and the legal issues in question.

Depending on the evidence that’s available and the nature of the dispute, you may wish to include:
statements from witnesses
doctor and expert reports
financial calculations and
any other material that typically is not produced until trial.

You are free to exchange information that may encourage settlement.

7. Why is Mediation successful?

Mediation allows you to discuss your concerns in an off-the-record format. It allows you to approach settlement without risk.

You can win with mediation. Why? You learn the strategies and weaknesses of everyone’s position. The costs of proceeding to trial after mediation are usually made clear to both sides. This is usually a good incentive to reach settlement.

8. What does Mediation cost?

Typically, mediators can charge between $200 to $400 per hour. The costs based on a half-day session can be shared by both sides to the dispute. Usually, a mediation session can cost from $2,000 to $10,000 for experienced estate mediators.

Each party will pay their own legal costs for time to prepare and review briefs. Although in the short run mediation can be expensive, it can lead to considerable savings if your case is resolved without going to trial.

9. How do you prepare for Mediation?

Preparation for mediation must be almost as thorough as going to trial.

Lawyers must be prepared to adjust their negotiating positions. This is because after the mediation, new information might be disclosed for the very first time.

Lawyers must prepare and be familiar with both sides of the case. They must be flexible through negotiations and understand clearly what it is that you wish to achieve.

10. What is your role as Client?

Clients must be prepared to be flexible and listen to the other side’s position. You do not need to understand legal theories or be prepared to discuss them.

Some mediators invite you to personally describe how you feel about issues, and what you wish to accomplish by settlement. Often, these issues can be addressed by your lawyer and there may be no need for you to prepare.

You do not undergo cross-examination or give evidence at mediation. The process is much more controlled and relaxed, reducing stress and expense.

Let’s Summarize

Mediation of estate disputes is not to be feared but encouraged.

It is an opportunity for you to reach an early, cost-effective, out-of-court settlement. This process is much more satisfactory than getting your day in court.

You can be a winner through mediation.

Reminder

This report is no substitute for legal advice.

If you are interested in a consultation with Edward Olkovich, contact his office through his web site at MrWills.com or by telephone at 416.769.9800 or Toll Free at 1.877.Mr Wills (1.877.679.4557).

Want more information?

Contact Edward Olkovich Law Professional Corporation at MrWills.com for a consultation to review your needs.

Tel: 416.769.9800 / Fax: 416.769.9440 / TF: 1.877.MrWills (1.877.679.4557)

Visit EstateTherapy.com – Simple solutions to your estate problems

About Edward Olkovich
___________________________________________________________
Ed is recognized as a leading Canadian estate expert. He has practised law in his own firm since 1978 and is a Certified Specialist in Trusts and Estates Law.

Ed is also the author of seven books, including Choosing Executors, Breakthrough Estate Planning and Estate to the Heart: How to Plan Wills and Estates for Your Loved Ones.

He is the founder of EstateTherapy.com, an online estate planning publisher, and is the Dean of Executor Academy.

Ed can be reached by email at ed@MrWills.com or by telephone at 416-769-9800 or toll free at 1-877-MrWills.

For Your Protection

Executor Duties
___________________________________________________________

Research has shown most people do not know what an executor does.

If you are an executor, here are the things you need to know.

You need legal advice at the outset to protect yourself. Problems often arise that could easily have been prevented with proper advice.

Hire a lawyer to educate yourself about your executor duties. This will help you stay out of trouble.

Your need to keep records starts once you act as executor. This continues until all beneficiaries, or a judge, approve all your transactions. In some cases, you may need to keep records of time you spent to justify your claims for compensation.

Executor Duties

Step 1 – Protect estate property – secure and insure it

Step 2 – Probate the will if necessary to sell or transfer assets

Step 3 – Pay bills and distribute the estate to beneficiaries

Step 1 Protect Estate Property
___________________________________________________________

In Ontario, executors are also referred to as estate trustees with a will.

Make sure the will you have is valid and is the last one signed. If not, you could be liable to the real beneficiaries. Secure assets by making sure insurance is in place for cars, homes and valuables.

Lawyers need lists of debts and assets, as well as relevant details, for probate and accounts for income tax.

Make sure there are no codicils or questions about the will’s validity. Handwritten holographic wills, written entirely in the deceased’s own handwriting, can be valid wills in some provinces.

Step 2 Probate the Will
___________________________________________________________

Probate proves to third parties that a court has validated a will. Until probate is obtained, executors need legal advice to manage estate assets.

Executors hire lawyers to do the legal work. This includes filing court papers to get letters probate. The current term used in Ontario is a Certificate of Appointment.

Probate certifies the persons entitled to benefit under a last will. Assets are valued to calculate probate taxes and income taxes.

Getting up-to-date appraisals of property, investments and any business will take some time.

Check the will to see if you have discretionary and specific powers to sell property and settle claims.

If there is no will, the court must appoint an estate administrator. Usually relatives apply, but this is time consuming and expensive.

Step 3 Pay Bills and Distribute
___________________________________________________________
Executors must wait until all debts, including income tax, are settled. Normally, you request an estate tax clearance certificate from Ottawa.

In many cases, executors will wish to advertise for creditors. This protects the executor from personal exposure for income tax and other liabilities.

Legal documents called releases are usually signed by beneficiaries entitled to the residue of the estate. This confirms they approve the distribution and executor compensation.

You need a lawyer to prepare legal documents, including the release.

Summary Tips for Executors
___________________________________________________________

Step One: Protect Estate Property

1. Review will and contact a lawyer.

2. Confirm funeral arrangements.

3. Take steps to secure estate property.

4. Notify next-of-kin and beneficiaries.

5. Guarantee insurance coverage on valuables.

6. Preserve any business or investments.

Step Two: Probate the Will

7. Prepare an inventory of assets and liabilities.

8. Instruct a lawyer to probate the will.

9. Settle all legal issues.

10. Sell assets to pay bills.

Step Three: Pay Bills and Distribute

11. Pay all liabilities and get tax clearance certificate.

12. Account to the beneficiaries.

13. Have your executor’s compensation approved.

14. Get releases signed by all beneficiaries.

15. Distribute the estate assets.

YOUR EXECUTOR DUTIES MAKE YOU
RESPONSIBLE FOR MISTAKES
- WITH SERIOUS CONSEQUENCES
______________________________________________________

Handling an estate is complicated.  Research proves that people don’t know what to do.

That’s why you should read Executor Kung Fu: Master Any Estate in Three Easy Steps. In this complete, step-by-step guide, learn how to:

reduce the stress of being an executor
take inventory of the estate and distribute assets
use your powers wisely as executor
organize yourself to save time and money
deal with professional advisors,

Complete with sample forms, case studies, checklists, executor tools and summaries to keep you out of trouble.

“Easy to read and use”
- Milton Zwicker, Lawyer and Author

“Every executor should read this”
- Brad Huxtable, Lawyer, Sheldon Huxtable Professional Corporation

ED OLKOVICH, B. A., LLB., C.S., TEP, is a legal specialist and one of Canada’s leading estate experts. Ed is a Master of Executor Kung Fu — the practice of executor self-defense. Learn more at www.EstateTherapy.com.

To order your copy of Executor Kung Fu or other valuable guides, visit EstateTherapy.com.

Reminder
___________________________________________________________

This report is no substitute for legal advice.

If you are interested in a consultation with Edward Olkovich, contact his office through his web site at MrWills.com or by telephone at 416.769.9800 or Toll Free at 1.877.Mr Wills (1.877.679.4557).

Want more information?

Contact Edward Olkovich Law Professional Corporation at MrWills.com for a consultation to review your needs.

Tel: 416.769.9800 / Fax: 416.769.9440 / TF: 1.877.MrWills (1.877.679.4557)

Visit EstateTherapy.com – Simple solutions to your estate problems

About Edward Olkovich
___________________________________________________________

Ed is recognized as a leading Canadian estate expert. He has practised law in his own firm since 1978 and is a Certified Specialist in Trusts and Estates Law.

Ed is also the author of seven books, including Choosing Executors, Breakthrough Estate Planning and Estate to the Heart: How to Plan Wills and Estates for Your Loved Ones.

He is the founder of EstateTherapy.com, an online estate planning publisher, and is the Dean of Executor Academy.

Ed can be reached by email at ed@MrWills.com or by telephone at 416-769-9800 or toll free at 1-877-MrWills.
For Your Protection

Ten Things Executors Must Never Do
___________________________________________________________

Executors must not …

Do anything on behalf of the estate (distribute estate property, pay debts, or sign any documents) before talking to a lawyer.

Buy and sell assets or estate property without probate, even if the price is fair.

3. Borrow estate funds or loan money to the estate, regardless of how much the security or interest rate may be.

4. Mix their money and estate money. They must keep separate accounts for estate money.

5. Fail to exercise reasonable care and skill to protect estate property.

6. Forget to take control or possession of estate property.

7. Knowingly permit a co-executor to breach duties.

8. Forget to keep estate assets productive (invest funds, collect rent).

9. Try to hand over their responsibility to someone else.

10. Quit in the middle of administering the estate without court approval.

YOUR EXECUTOR DUTIES MAKE YOU
RESPONSIBLE FOR MISTAKES
- WITH SERIOUS CONSEQUENCES

______________________________________________________